A third-party logistics company is the one that provides services to manage inventory, warehousing, cross-docking, transportation, and shipping of the products manufactured by business enterprises. The logistics companies also take the responsibility for supplying raw materials and collecting and processing returns on behalf of the enterprise.
In short, the 3pl company takes over the supply chain management and optimizes the use of resources to streamline the process and reduce the time taken to deliver the products to distributors, wholesalers, retailers, and end-users.
Compared to having an in-house supply chain team, the 3pl providers are efficient, effective, and capable of dealing with complex freight requirements. Enterprises are finding it beneficial to opt for the services offered by top ten logistics companies to optimize the supply chain.
- Monitoring and Control
Will it not result in a loss if the shipment is not delivered on time? How can an enterprise handle last-minute cancellations, especially if it doesn’t have any other means of transporting the products? Such issues will be sorted by the logistics companies in no time. They don’t just monitor the shipment. They also make alternate arrangements to see that it reaches the destination on time.
- Access to a Wider Network
Third-party logistics companies are always working on adding more suppliers, transporters, and distributors to their network. They provide enterprises direct access to this network so that they can benefit from it. This allows enterprises to enter new markets without worrying about how it will have to handle the logistics.
- Access to Additional Resources
From having employees with expertise in using the latest warehouse management software to using advanced equipment to pack, weigh, and transport the products, the logistics company provides enterprises will various other resources as a part of the service.
- Temperature-sensitive Warehouses
Maintaining a temperature-sensitive warehouse is not easy. And if the enterprise manufactures different products that require varying temperatures it can get even costly to store them until they are ready to be shipped. The 3pl company, on the other hand, specializes in it because its focus is exclusively on the aspects related to the supply chain.
- All-in-One Services for Cost-effectiveness
The third-party logistics company doesn’t usually restrict itself to providing one or two services. Instead of having different service providers for each stage of the supply chain, a single company can take care of everything, including the returns. Be it about the market demands or future trends, 3pl companies can help enterprises adjust their inventory volume as per the market conditions.
- Free up Time and Capital
Instead of employing and training in-house staff, enterprises can use the services of 3pl companies where the employees already have the required experience in handling the inventory and making sure there are no or minimum damages when moving the products from one location to another. Also, the enterprise doesn’t have to invest in managing the warehouse and adding additional security.
- Competition in the Market
The increase in demand for 3pl services led to more players entering the market and providing logistics services. This resulted in competition, where each company has been striving to set itself apart from the rest and offer something unique or extra. The top ten logistics companies became famous because of their ability to offer quality services at a lesser price.
Enterprises are benefitting from the increasing competition as they have more options to choose from and can also demand quality services from the companies. The responsibility lies on the company to prove its worth and retain the enterprise as a client rather than the other way round.