Supply and demand. It’s one of the first topics you cover in any economics class, and the concept is fundamental to any business in any industry.
Here’s an example: You have created the best product. It’s so awesome that everyone wants it. While this is a great problem to have, it’s still a problem nonetheless. Why? Because you still need to make sure you can produce enough of your awesome product to keep up with the demand, as well as be able to safely transport those items to their purchasers in a timely manner. Even great products get overlooked for the next viable solution if the buying process is better.
No one wants to wait an extended amount of time for a product, nor do they want to deal with a damaged good on arrival. Having a stellar supply chain process can reap huge rewards for you, but how are you supposed to do that if you don’t know how to do that? That’s where third-party logistics companies come in.
Third-party logistics providers (3PL) offer logistics services and can support some or all aspects of a company’s shipping needs. Yet, 3PLs have more capabilities than just transporting goods for business. They work as outsourced logistics and supply-chain management providers so that companies do not have to retain warehousing, transportation, etc. themselves.
It can include all areas of shipping fulfillment services, including:
- Transportation
- Warehousing
- Materials procurement
- Inventory management
- Customs brokerage
- Freight audit
- Payment
- Shipment tracking
What are the benefits of working with a 3PL?
Before diving into the benefits of working with a smaller 3PL, we wanted to touch on the overall benefits of working with a 3PL in general.
Drive Cost Savings
There is huge cost saving potential when you outsource your supply chain needs. When you hire a 3PL provider, it means you do not have to create and manage your own fleets, warehouses, or tracking technology.
Focus on Your Business
Since you do not have to worry about setting up your own supply chain resources, you can focus your efforts where they should be: on your business. Instead of worrying about how you are going to get your products to your customers, you are able to put your time, effort, and resources into product development or other areas in your business.
Gain Access to Expertise
This is especially important for start-up companies. You may just not have the knowledge yet to understand the best way to ship your products, upkeep a warehouse, or which technology works best for your needs. Having a real partner for your supply chain is invaluable.
Have Scalability
Here’s an example: You have a business and need to deliver goods, but you just need one truck to do it. Then, you grow and your routes expand and you have more product to deliver. How do you keep up with your business’ growth pace? Flexibility and scalability are keys to success and that’s what 3PLs provide, enabling business growth and market expansion.
Raise Customer Satisfaction
No one wants to order a product and receive it late, damaged, or worse, not at all. Working with supply chain experts ensures that your customers are not left in the dust.
Improve Global Capabilities
You are the expert in your field, and 3PLs are experts at transportation. These companies are working day-in and day-out in supply chain and have on-ground knowledge of local markets, regulations and government agencies whether you are looking to ship across state lines or country borders.
Benefits of Working with a Smaller 3PL
While it’s true that all third-party logistics providers handle your supply chain needs, not all of them take the same approach in doing so. Working with a smaller 3PL provides a different level of support. When you work with a smaller 3PL you get all the benefits listed above…and then some.
FSL Group is a smaller 3PL, so we practice what we preach.
Here are the top benefits of working with a smaller 3PL:
Personal Approach
Outsourcing doesn’t mean there is no personal touch to service. At FSL Group, you’ll have a more personalized approach to your freight operations. We may be smaller, but are mightier when it comes to our customer service.
Less Stringent Policies
With any larger company comes more paperwork and red tape. FSL Group runs a nimble operation, allowing us the capability to swiftly adapt to your particular shipping needs.
Familiarity
Smaller 3PLs often work with smaller fleets, which can result in regular drivers assigned to your freight. Not just that, POC as well as drivers/dispatchers will be familiar with your operations. This creates efficiency because there is less time understanding needs. They already know your business and get right to work.
Higher Priority
Larger companies have more customers. At a smaller company, you will be a bigger priority. At FSL Group, each load counts and is prioritized to perform impeccably on every opportunity presented.
One Point of Contact
There is nothing worse than having a quick question like, “What’s the status of my shipment?” and not getting a simple answer. Working with a smaller company means you can have one point of contact so you have less bouncing from person to person just to get a question answered.
Enhance Security
Being more hands-on than some of the bigger counterparts, smaller 3PLs can work directly with you to enhance security to your comfort levels for all your shipments. Do you want to implement a supply chain security program that enhances security? No problem. Smaller 3PLS can utilize their expertise and relationships within their network to determine what programs work best for you.
Conclusion
You want to be able to create the best products and provide the best support for your customers. When working with a third-party logistics provider, you are able to scale space, labor and transportation on your needs, not your availability. Working with a smaller 3PL grants you the personal approach to support you need, without needing to invest in warehousing or assets.
Focus on your core competencies and let FSL Group handle the rest. Our team of experts is ready to carry out your logistics processes, so you know your shipments will arrive on-time and on-budget, with the right carrier, right equipment, and right place. Request a quote today!
