Manufacturing companies can gain a great deal of assurance by outsourcing supply chain management to a value-added third party logistics (3PL) provider. This type of company offers services that a factory alone cannot. Third party logistics provides an all-in-one solution for assembly, packaging, warehousing, and distribution, and can maximize profitability through combined knowledge and resources. Key areas in which companies can benefit by employing third party providers include:

  • Resource Network – 3PL providers have a vast resource network available that allows each step in the supply chain to be executed in the most efficient, cost-effective way. 3PLs can leverage relationships and volume discounts, which results in lower overhead and the fastest possible service.
  • Save Time and Money – Using a third party provider eliminates the need to invest in warehouse space, technology, transportation, and staff to execute the logistics process. This can save a company from costly mistakes and help to build a global logistical network with lower risk and higher return. 3PLs also save companies time because they don’t need to worry about the paperwork, billing, audits, training, staffing, and optimization involved to get the products where they need to go.
  • Expertise - They are knowledgeable of industry best practices and remain up-to-date with the latest developments in technology. They provide advanced reporting, inventory management, and visibility to monitor the entire process. Outsourcing logistics allows factories to focus on their core competencies and leave the rest to the experts – a team of reliable, seasoned professionals.
  • Scalability and Flexibility – They providers offer the ability to scale space, labor, and transportation so that they’re only utilized when needed. They have distribution centers and warehouses strategically located to allow for quick shipping of goods to anywhere in the world.
  • Continuous Optimization - Third party providers have the resources at hand to make continuous adjustments and improvements to each link in the supply chain. They can monitor and analyze practices to eliminate inefficiencies and streamline the supply chain.

When companies outsource a third party company, they’re essentially ensuring that everything that is shipped is exactly what was ordered and that the customer will be completely pleased. Third party providers have the customer’s best interest in mind throughout the entire process and function basically as an extension of the manufacturing company. 3PLs give companies assurance that interaction on a local level is possible and that all details are being overseen in real-time. When it comes to supply chain management, this calls for the experts, and manufacturing companies are smart to put their trust in logistics.

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