There are many reasons why companies, small or large, may outsource their third-party logistics to an external company. Most often it is a matter of using a company with the industry knowledge of packing, warehousing and distribution that your business may not have internally. This can alleviate workload for employees and directors and leave them to focus on other important tasks. Very often, using a 3pl provider can save your business money.
Save Money & Time
By using a third party logistics
company, you are eliminating the need to spend money on technology, warehouse space and the distribution costs of your products. Not only that, you are also removing the need to hire internal staff to take care of your logistics process. By using a reputable 3PL provider you are bringing in years of industry knowledge and experience that means mistakes are much less likely to happen. A company, such as Cync, will help you build a logistical network without you having to worry about things such as staffing, training, audits, paperwork, picking & packing
and billing. This is all taken care of by the provider and with Cync’s technology it is easier than ever before to check the status of your supply chain.
We have already mentioned how third-party logistics companies use their expertise to save you time and money, but why is this expertise so important? Logistics is a very fast paced industry and it is vital to keep up to date with industry best practices and the latest developments in technology. Cync use a bespoke piece of software so that the entirety of your supply chain process is transparent and visible to you at all stages whilst also providing you with feedback on stock levels and other valuable information to keep your business flowing.
Flexible to your requirements
One major benefit of using a third-party company for your logistics is the flexibility they can offer you according your natural fluctuations in your business. This means that, instead of sitting with a half empty warehouse of your own during a seasonal down period the provider can increase or decrease the space you are using depending on your stock requirements. Labour and transportation utilisation can also be changed accordingly.
Optimisation of your Supply Chain
Standing still is a very dangerous thing to do in Logistics which is why a 3PL provider will continuously be looking for improvements that can be made in your supply chain. Things like making sure that you are using the most cost effective, efficient and fastest solutions will all be considered. Quite often these kind of improvements can be only be found by an experienced Logistics professional and where an internal team may not have the time or resource to locate these issues a Third Party Company will make this part of their promise to you.
Another area in which internal supply chain teams are not as strong as a third-party provider is in utilising existing networks. A 3PL provider will already have expertise and relationships to leverage and obtain volume discounts as well as other benefits.
As you can see, there are a multitude of reasons why using a 3PL provider is beneficial, particularly for ecommerce fulfilment
. Cync are experts in Logistics and would be happy to discuss how we can help your business grow. Call us on 0116 2884238 to speak to one of our friendly team.