The Ultimate Guide to Selecting a 3PL…
What is Logistics Outsourcing?
Well, logistics outsourcing is many things. Logistics outsourcing is warehousing. It’s loading and unloading. It’s scanning, picking, and sorting. It’s racks and forklifts and the maintenance thereof. It’s staffing. It’s technology. It’s inventory. It’s packaging. It’s freight transportation management. It can be all of these things and more.
To put it simply, your 3PL is your problem-solver. So why not be certain that your problem-solver has the means and expertise to tackle each and every one of your business’s needs? Your business may seek the warehousing, customs brokerage, clean room services, contract packaging, global freight-forwarding, networking, and transportation management of a lean source logistics provider.
Why not choose one logistics partner to rule them all? For a growing business with so many variables ahead, it’s quite beneficial to be partnered with a provider with extensive experience in such a wide arsenal of services. Committing to one solid transport and logistics relationship is simply going to make your operation more streamlined and cost-effective across the board.
What can a 3PL do for your bottom line?
The advantages of a single-source transportation and logistics provider are bountiful. As the single source, a 3PL takes responsibility for all target goals of a project, including costs, time windows, quality control, inventory reports, key performance indicators, and customer satisfaction. While many third-party logistics companies may only offer a few fulfillment services, there are highly comprehensive providers that will cover every aspect of your fulfillment, offering single-source logistics solutions for all outsourcing needs.
The key role of a single-source supplier is one that assumes responsibility and accountability for the inevitable warehousing and transportation issues that might otherwise get in the way of one’s day-to-day operation. This enables your core business to operate with razor-sharp focus on what you do best, while your 3PL tackles the complex logistics behind it all. 3PL is a symbiotic relationship with room to grow over time.
Fixed Cost Model becomes Variable Cost Model
Why risk putting more into a venture than you might get out of it? Under a fixed-cost model, your business may be tying its own shoes together right out of the gates. Committing to such enormous looming costs from the outset may backfire as one develops and adapts one’s strategies. A 3PL affords one the flexibility to adjust when one needs to. Change is an inevitability in any business. It’s paramount that a business has the means to either ramp it up or reign it in when the time and circumstances call for such adjustments. A variable cost model puts you and your wallet in a position of power and comfort.
Landing a heavy contract can be a major breakthrough for a growing company, but one must be careful not to be crushed beneath this success. Ample storage space, verified clean facilities, and other necessary requirements may mean extreme overhead for a shipper. Buying into one’s own facilities is an option, but have in mind that logistics operations don’t merely begin and end with a bunch of racks in a warehouse. Major renovations are often necessary to meet safety standards, furnish office areas, install utilities, and maintain very expensive warehousing equipment. These hurdles can become a money hole for a shipper, but for a solid logistics outsourcing partner, this is business-as-usual. Food for thought.
Studies show that 3PL operations function more promptly, efficiently, and affordably than in-house ops.
The results speak for themselves. A 3PL offers effective, specialized, tried & true solutions from a place of expertise. It’s no surprise that those who choose 3PL for their logistics solutions find great success and satisfaction in the relationship.
- Successful 3PL Relationships Report at 93%
- Reduced Logistics Costs Report at 70%
- Innovative & Effective Solutions Reported at 75%
A Better Trained, Certified, and Flexible Operation
Logistics Outsourcing Offers a Brisk Pathway to Success
Being able to offer the correct ingredients in the correct increments at the correct times provides a huge edge in the logistics game. Hiring a 3PL means adopting their specialized expertise. Here are ways in which a 3PL like Dynamic 3PL specializes in keeping you ahead:
- Customer Requirements – AAll of our transport and logistics projects begin with a detailed analysis of our customer’s requirements. We listen, collaborate, recommend, and document. If we don’t fully understand your needs, we can’t fully satisfy your needs.
- Flexible Staffing – In almost any business, you’ll have your busy seasons. Though this isn’t always the most predictable variable. A 3PL gives you the elbow room to acquire as much staffing as you need when you need it, without paying too high a price when you don’t.
- Customized Logistics Strategy – Every one of our customers gets a fully customized logistics solution. We design the process including inputs, steps, and outputs. We also agree to a method of measuring progress, process compliance, and customer satisfaction. We develop transparent, objective measurements with our customers so we have a great foundation for communication and continuous improvement.
- Dedicated Account Management – Every one of our customers gets a dedicated account manager who will be accountable to you and Dynamic 3PL’s management team. We hire, train, and retain the very best people.
- Built-in Certification – The standards and policies of the logistics industry are ever-growing and ever-changing. Outsourcing one’s operation to a logistics expert affords you an ally in the effort to stay ahead of the curve and continue your operation unhindered by new regulations.
3PL’s aren’t simply the safe bet. Nor is it simply the cheaper option. Nor is it simply the quickest path. If you’re dealing with a solid logistics service provider, all of these advantages (and more) are bundled into a communicative relationship that is conducted, streamlined, and cared for by longtime industry experts. In choosing the right 3PL, you are bringing aboard a whole slate of strategic, intuitive advantages.
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