7 Reasons To Have A Third Party Logistics Provider

Shipping is one part of a business that’s hard to get right. There are many factors to consider, and it’s hard to know those unless you have a lot of experience in the shipping industry.

That’s why the third-party logistics industry exists. It’s there to help companies large and small get their products to customers on time. It’s why the market for third-party logistics is worth $196.4 billion.

If you’re having problems keeping your shipping process running smoothly, working with a third-party logistics provider may be your solution. Below are seven reasons why a third-party logistics company is worth using.

1. Save Money

Yes, working with a third-party logistics (3PL) provider does cost money upfront. However, you’ll also see cost savings across other parts of your business as you refine your shipping process with your provider.

This happens because your 3PL provider will have great relationships with other companies in the shipping industry. They provide a lot of volume to those companies, so they get discounts based on how much they buy.

As a small company, you may not have this option. You can’t provide the same volume of business as a larger company. That means you’ll pay more for shipping than you would with a 3PL company.

2. Save Space

If you handle the shipping process yourself, you’re going to use up a lot of space. While this may not be much in the beginning, you’ll eventually need to rent a warehouse to store your products once your company starts growing.

This is also a problem if you need to scale. It takes time to find warehouse space, and you may not be able to spare that time when you’re trying to grow your business.

A third-party logistics company solves this problem. They have all the warehouse space you need now and in the future. You won’t need to worry about running out of room when you grow and reduce the total space your company needs to operate.

3. Save Time

It doesn’t only take money and space to get logistics right. Shipping is a complex process, and if you don’t plan everything correctly, you’ll end up with an inefficient process that can’t meet your customer’s needs.

You don’t have to do any planning when you outsource your logistics to another provider. They’ll handle all the heavy lifting to optimize your shipping process.

You can then use this extra time to focus on other tasks in your business. These tasks are usually more critical work to help you grow your business faster than spending all your time on shipping issues.

4. Reduce Risk

You take on all the risks when handling all your business operations yourself. If something goes wrong, it’s on you and only you. It’s sometimes hard to recover from setbacks if you don’t have a big enough operation to handle those problems.

By outsourcing your logistics to a third-party provider, you can mitigate a lot of that risk. You won’t completely eliminate problems or face setbacks in the future. However, your 3PL provider will be in a better position to handle these issues than you would be on your own.

That means you can return things to working order more quickly and start meeting your customer demands again in no time.

5. Go International

It’s hard enough to handle shipping in your own country. You need to be aware of countless laws and rules you need to follow. It’s another level of complexity if you want to start shipping your products out of the country.

Every country is different and will have unique requirements for you to meet. If you don’t have a large shipping operation, handling everything yourself may not be feasible.

A third-party logistics provider will have all the details handled already. They know international laws and have connections in other countries to address any international shipping requirements you have.

6. Optimize Your Process

Even when you use a 3PL provider, that doesn’t mean you won’t have work to handle yourself. You still need to create your products, get them to your provider, and ensure you have enough inventory to handle the demand. All of that still takes a lot of work.

Your logistics provider will help you the entire way. They aren’t just there to handle the work you give them and nothing more. You’ll have a team of shipping experts available to help you with whatever you’re having problems with.

Your 3PL provider can examine your entire process and recommend changes to optimize everything. You’ll get a better process at every level, which means you’ll have more room to grow and save money at the same time.

7. Improve Customer Service

Getting your products to your customers is only part of the shipping process. Not every customer will be satisfied with your service or products, and they’ll want to make returns and get their money back.

Handling returns is another skill set you’ll need to learn for the shipping process. You’ll need a way for your customers to ship back to you and not spend a fortune doing so.

Your logistics provider will nail this process for you. They’ll handle all your customer support issues with shipping and ensure everyone ends up as a satisfied customer.

Find a Third-Party Logistics Provider to Help Today

Shipping is one of the most important parts of running a business, so you can’t afford to get things wrong. A third-party logistics provider can help you refine your shipping process and get your products to your customers faster. Talk to a third-party logistics provider today to learn everything they can to help.

Do you want more tips that will help you optimize every part of your company? Head back to the blog to check out the latest business posts.

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