Outsourcing
Articles >> Logistics Outsourcing
Outsourcing logistics operations to a 3PL (third
party logistics) adds to the bottom line for both the retailer and
manufacturer through accurate, well-managed inventory and supply chain
solutions.
Outsourcing reduces the need for costly real
estate to hold inventory. Manufacturers, distributors and retailers who
outsource save time and money.
3PLs offer expertise that
manufacturers, distributors and shippers can tap into, allowing users to
achieve supply chain solutions with their customers that minimize total
delivered costs.
The efficiencies generated by outsourcing
logistics has made it extremely popular. Recent studies show that
fully 80 percent of Fortune 500 companies outsource at least one
function – the largest such number in history.
This
popularity results from the many benefits gained by partnering with a
3PL provider.
Benefits of Using a 3PL
» Reduced total delivered cost for your customer
» Local expertise in new markets
» Improved customer service through shorter shipment times
»
Reduced inventory costs through better management
» Cost benefits through volume shipping discounts
» Improved focus on core competency
» Increased shipment visibility
» More scaleable logistics operation and cost model
» Improved variety of technology and service
» Risk reduction
» Increased expertise in supply chain security
