Benefits Of Outsourcing The Logistics Function To A 3PL Service Provider

Spread the love

In an era where we hear about technological breakthroughs almost every day, doing business has become a much simpler task than ever before in the history. Due to the removal of various entry barriers to industries, even small start-ups can establish themselves at a very fast rate and reach impressive heights in a matter of few years. One of the biggest enablers of this success in industries across the business world is the concept of outsourcing which has taken over the market place by storm. Among the many aspects of an enterprise that can be outsourced to make the lives of the managers easier, logistics and supply chain function is quite prominent. In this article, we will learn about how companies have benefited by contracting with third party logistics service providers.

Cost saving

The supply chain function is a vast and complex one which requires substantial capital investments and large departments to be performed effectively. The initial costs of setting up infrastructure, purchasing vehicles and recruitment and training of qualified personnel is nothing compared to the costs of compensation of workers, smash repairs Brisbane and maintenance and taxes and management of establishments that follow. By contracting the function to a 3PL company, all these costs can be transferred to them.

Reduced risk

Depending on your businesses very own logistics department to fulfill he supply chain requirements can be risky. Imagine a situation where you need to make an urgent cargo transportation and all your vehicles are currently receiving a spray painting treatment in a service station. Such disappointments can be avoided if the operation is managed by an experienced third party with wide network of connections and resources that they can resort to on our behalf to facilitate any requirement at any time.

Better quality service

Since the 3PL service providers are well experienced in their area of specialty and are equipped with resources of global standards to provide the best level of service at reduced costs because of their ability to experience economies of scale, these benefits will be passed down to your enterprise. This is especially advantageous for start-ups and small businesses who doesn’t have the capital nor the experience to compete with the key players of the market.

Saves time

Imagine all the time and effort a business must put in to manage their very own supply chains n function. It will keep the managers constantly occupied with complex and frustrating processes that require lots of attention. Not only will this distract them from their main objective of improving the core business activities, but it will also use up most of their valuable time. Outsourcing takes this burden away and gives them the opportunity to stay focused on what’s most important.