Posted in Transportation and Logistics

How to Make the Most Of 3rd Party Logistics

How to Make the Most Of 3rd Party Logistics Posted on May 13, 2020

There are many reasons that companies outsource logistics. 3rd party logistics providers can help businesses save time, often complete the task better and make the most of distribution networks. Could your business benefit by outsourcing your shipping requirements?

Outsourcing is great for your business

Whether you are a manufacturer, a distributor of goods or you have a supply chain with the need to transport goods to various locations, removing the difficulties of shipping those goods to 3rd party logistics providers 3rd party logistics providers will almost certainly provide you with a competitive advantage over adversaries who insist on using their own distribution vehicles.

Where your role is to produce, or move the goods, you will free up your financial resources and more importantly, capital, so you can focus on the core activities of your business.

Where you have previously chosen to manage your own trucks to distribute your goods, it is not your main business. It makes good common sense to work closely with 3rd party logistics providers to make better use of their expertise and economies of scale to be able to deliver effectively, cross-country.

Keeping the Shelves Stocked with Your Goods

Your key focus is to ensure that your goods appear on every relevant shelf across the US. By keeping your products in stock, you make sales and can further invest in your business or take the success as profits. By partnering with a professional logistics company, you can take great advantage of ensuring that deliveries arrive perfectly and on time, for your retail customers.

Choosing your favorite 3rd party logistics providers may not be as easy as you imagine. By asking people who you trust for their opinions, perhaps those in a similar industry to your own business, you will find out which logistics companies are trustworthy and a list of those that you should avoid.

To make the outsourcing of your deliveries effective and continuously successful, it may take some time to create a level of trust and respect for each other. In time, trust builds where if there are any delays in transferring your goods to a new destination, you are made aware of the circumstances.

You may need to change the costings of the delivery content for your product so that you are charging an active shipping fee to your end customers. Some companies decide to build the cost of shipping into the final price and effectively offer free shipping. The choice of how you operate is yours, but building a consistent relationship requires work from both sides.

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