Could Using Third-Party Logistics Help Your Company

Monday, 27th January 2020

Gone are the days when companies had to manage everything themselves; in the time of the 'sharing economy' smart businesses know when to delegate. 

To that end, third party logistics – or 3PL – is becoming increasingly popular for both large and small businesses to cut costs and improve efficiency. According to 2008 legislation, 3PL providers are those that “solely receive, hold, or otherwise transport a consumer product in the ordinary course of business but who does not take title to the product”. Put simply, they are companies that transport and manage goods to make others’ lives easier. 

Why?

One reason is the expertise of 3PL providers. Their whole business is engaged in handling logistics – so who better to entrust with your company’s logistics? Moreover, outsiders can often offer another perspective – 3PL providers often offer a little extra of the clarity, oversight, and vision necessary to plan and execute transportation and logistics in the most efficient manner. Using a third party offers you the chance to focus on what you’re really good at. It frees up time and resources to spend on improving your product – and thus improving your business. Allowing an expert to take care of the delivery and transport side of your business gives you the opportunity to focus on growing the enterprise.

Both of the above reasons culminate in one – even better – motivation: cheaper costs and overheads. When you use a third-party logistics company, you only pay for what you use. When you do move product in or out, you only pay for the freight costs. When you handle the logistics yourself, it’s necessary to pay all the staff full time; by using a third-party logistics provider, you’re getting full-time people at cheaper rates.

But is it really necessary?

According to the 2013 17th Annual Third-Party Logistics Study, far more shippers are increasing their use of 3PL services than returning to insourcing.  The same study found that 86 percent of companies needing shipping services viewed their relationships as successful, with 94 percent of 3PLs saying the same. And the reason for this is clear - over half said their use of 3PLs has led to year-over-year incremental benefits.

How Can We Help?

At FFWD Solutions, we are happy to offer a bespoke Third Party Logistics service. This not only includes delivery of goods, but also storage- whether you need to free up valuable space within your business in the long term, or need an interim storage solution, we have the answer. 

Get in touch with us to find out how we can help you.

 

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