Top benefits of 3rd Party Logistics

Top benefits of 3rd Party Logistics Popularly 3rd party logistics is defined as a supply chain process wherein either singular or multiple logistics functions are outsourced to a logistics solutions provider. With the immense advantages that 3rd Party Logistics (3PL) offers it is no doubt that enterprises are looking at these services with increased vigor. 3PL offers diverse solutions that include enhanced cargo management, best delivery, warehousing and distribution, cargo insurance and claims processing apart from assisting in documentation and forwarding.

In the course of this article we shall discuss the top benefits of third party logistics which include: Reduced capital expenditure means less capital risks: 3 rd Party logistics ensures that such expenditure and the risks that comes with such expenditure does not trouble the enterprise rather it is the outsourced logistics partner that will be bothered with such issues Enhanced coordination: Optimized third party logistics solutions can ensure enterprises engage in best coordination capabilities therefore the flow of goods can be efficiently carried out.

Net values rise with costs reduction: 3rd party logistics (3PL)ensures economies of scale and of scope which therefore brings in best ways to reduce costs and in turn raise the value of the company.

Enhanced competitive edge: 3PL enables enterprises to negotiate for better terms therefore they can engage services for competitive rates, providing them with ways to save costs and opt for the best solutions providers that does all the work.

Best savings: Since 3PL involves outsourcing your logistical headache, it also means that the administrative aspect of logistics is also effectively outsourced; therefore enterprises need not employ separate labor to book and track containers, because even that aspect will be looked after by your 3PL provider.

Shipment control rests with 3PL: Owing to their enhanced information services, coordination of supply chain aspects and processes rests with the 3PL provider, who can ensure best shipment control and can also provide best P.O monitoring capabilities.

Accountability of delivery rests with the 3PL provider: Since the enterprise has outsourced all the elements of its supply chain elements including supply chain quality, it can be relieved of the responsibility of ensuring everything happens on time and delivery is carried out as per plan, the onus of this responsibility rests squarely on the 3PL provider.

With such benefits on offer, enterprises would do well to opt for an optimized 3PL solutions provider to ensure best supply chain quality and functioning.

Learn more about: - Systems Integration & Fulfillment Solutions