As global supply chains increase in complexity in the wake of a pandemic, many companies are learning they lack the specialized expertise that is required to manage intricate logistics operations in-house. Whether it is a lack of access to the tight marketplace, a lack of industry knowledge, or simply a lack of time to handle all the nuanced complications that arise daily within the logistics business. These reasons all lend themselves to companies moving toward engaging with Third-Party Logistics partners for their dedicated needs.
Most smaller organizations often reach a point where managing growth becomes an obstacle. Similarly, larger companies can benefit from outsourcing, alleviating some bandwidth and allowing their teams to focus on their own core business units.
By customizing and scaling service offerings, logistics service partners can provide single or bundled assistance that extends across multiple aspects of your supply chain needs. Leading 3PLs create value in ways that enhance your operational, financial, and overall business performance.
Here are the top 5 reasons to engage a third-party logistics partner that can positively impact and benefit your organization, large or small.
1. Access to Carrier Marketplace
For any company, building a reliable and professional network of carriers is a challenge in and of itself. Freight brokerages specialize in relationship building and relationship maintenance, specifically with carriers.
Carriers prefer to work with brokerages because it affords them the opportunity to receive consistent and reliable lanes and loads. For that same reason, companies look to 3PL partners to tap into a nationally or globally reaching network, gain insight into the tight marketplace of carriers and place the responsibility of vetting carriers on the logistics professionals.
Logistics providers can pool volume from smaller individual loads, access smaller fleets that are not as prominent in the business, and ensure your product is moved by the most efficient means possible, saving you time and money.
2. Leveraging a Specialized Technology Integrator
It is cumbersome and costly to access various technology integrations required to gain visibility in your logistics operations, track your load, or even receive real-time updates. When partnering with a third-party logistics, you will benefit from their cutting-edge transportation management systems. These systems connect directly with customers and carriers to provide real-time tracking, financial reporting, updates, delivery confirmation, document imaging, and more.
Tools, such as Application Programming Interface (API), Electronic Data Interchange (EDI), and other cloud-based systems are among the most popular with trusted 3PL brokerages and can be costly for individual companies to possess. Oftentimes, the Enterprise Resource Planning (ERP) systems found within companies are designed to run your core business with little to no consideration for supply chain or logistics challenges.
Freight brokerages have advanced and tailored systems, tools, and processes that are specifically designed to maximize the resources of your logistics operations. The ability to leverage these specialized technology integrators will allow for better management of customer relationships, transportation, and operations.
3. Niche-Based Service Offerings
With over 700,000 trucking companies and carriers in the country, it can be difficult to find the best partner for you and your product. Frieght brokerages not only provide the national or global reach to access these carriers, but more importantly, they provide in-depth knowledge and industry-level expertise into your company’s specific requirements and procedures depending on your product.
Food products, consumer packaged goods, construction materials, or import/export all have drastic differences in their transportation modes and receiver allowances. A freight brokerage partnership will best understand your business needs, your customers, and your commodity.
4. Reverse Logistics / Claims Management
Reverse logistics is a very difficult process for most companies to handle without the assistance of interference from a 3rd Party. This is a type of supply chain issue that moves the product of goods from customers back to the sellers or manufacturers.
Reverse logistics can also include processes where the end consumer is responsible for the final disposal of the product, including recycling, refurbishing, or resale. This can create amplified risk and require additional funds and the issuance of claims.
Freight brokerages are subject matter experts in the field of reverse logistics. They can seamlessly guide companies through such a foreign and unknown process. The final disposition will always rest with the customer, but logistics service providers will come to you with solutions, not problems. They will take a holistic approach when dealing with carriers, shippers, and consignees. And will pre-vet all options once products are rejected, advise you on the most cost-efficient route, and execute the transport plan.
5. Trusted Advisor
Trusting third-party logistics experts with your shipping logistics can truly make a difference in the way your business functions and allow you to focus on increasing your overall impact to end customers. 3rd Party Logistics providers can offer expertise, help streamline supply chains and save your company time and money.
Their teams are dedicated, strategic, and committed to your company’s success. If any of these reasons mentioned above are the source of discussion or disruption surrounding around your current operation, Why Logistics LLC welcomes the opportunity to speak with your team and provide valuable insight about how we can partner together to help navigate you through complicated waters.
Why Logistics is a Freight Brokerage that supports supply chain and manufacturing operations within the continental United States and Canada. We offer a wide range of services such as transportation solutions, logistics management, warehouse network optimization, and other service value adds. Our approach is to grow our business by focusing on our core competencies, values, and goals, which ultimately allows our customers to focus on theirs. We have the ability to utilize our specialized technology to overcome any obstacle, ensuring your products get to the right place at the right time, and at the best cost.