3PL Logistics Defined
Third Party Logistics, or 3PL, specialises in providing outsourced logistics services to customers including the integration of transport, warehousing, pick-pack, dispatch and inventory management from the point of manufacture or import to the end user along the supply chain.
3PL allows a company to be flexible with space according to varying seasonal or economic demand fluctuation in a cost-effective manner. Outsourcing also provides companies with economies of scale which helps with cash flow and profitability. Best of all, it allows a company to concentrate on their core competencies, thereby increasing their return on assets, reducing costs, removing labour risks, and improving customer service.
It provides companies with many advantages including:
- the ability to increase or decrease your warehouse space according to your needs in a cost-effective manner
- further cost-efficiencies involved with the economy of scale
- best of all, it allows you to concentrate on what you do best
At Your Service Logistics is an excellent option for your 3PL needs, overflow issues, and niche market storage requirements. Our modern facilities and high levels of technology allow us to provide our clients with a cost-effective and efficient service that has the flexibility to grow with them. Orders can be processed via fax, FTP or EDI interface.
Benefits of 3PL
Third Party Logistics is an effective way to reduce operational costs, and allow a company to focus on their core competencies. Outsourcing logistics operations to a 3PL provider adds to the bottom line for both the customer and supplier through accurate, well-managed inventory and supply chain solutions.
Some of the economic advantages of using 3PL suppliers are:
- The elimination of infrastructure capital and investment.
- Access to expertise in the logistics field to allow users to achieve supply chain solutions with their customers that minimise total delivered costs.
- Reduced inventory costs through improved management.
- A strategic partnership with a company, whose core activity is specialising in logistics, allowing you to increase focus on your core competencies.
- Improved customer service through shorter shipment times.
- More scalable logistics operations and total logistics costs are clearly identified.
- Productivity gains through logistics being managed more effectively through the application of technology.
Steps to Successful Outsourcing
- Develop a strategy
- Select a partner
- Clearly define expectations
- Develop a contract
- Define standard operating procedures
- Communicate effectively
- Measure performance
- Realign (if needed)