The role of a 3PL (third party logistics) is to essentially provide supply chain processes for a variety of industries. A 3PL company can specialize in procurement, transportation, and distribution functions that are customizable to your needs.
As your company grows, the operations can become overly complex. Some companies try their best to recruit the right talent, curate the right skills and gather the right tools to work through the complicated tasks of supply chain management. Unfortunately, your team could easily be burdened with such tasks and feel overwhelmed. In these situations, you need a trustworthy partner. A 3PL company takes on the burden and uses its logistical expertise so that you can focus on other aspects of your organization.
The Four Components of a Supply Chain
There are 4 components to shipping and transportation, and 3PLs have a significant role in each of them. The first component is to deal with having to manage multiple suppliers. Raw material is provided by the supplier and is eventually passed onto a manufacturer, which is the second impacted component. A manufacturer has access to smooth shipment delivery to ensure a completed production. When the products are manufactured, they need to be housed properly before being distributed. A 3PL’s role with the component of a distributor is to coordinate the movement and storage of products. In the end, the role of a 3PL is to successfully ship the products to the last component of a supply chain, the consumer.
The Goalkeeping Role of a 3PL
Another role taken up by 3PL is to meet the outlined goals for their client, which could be you. Some 3PL providers also meet warehousing and fulfillment needs for companies that need quicker deliveries. They will account for where your customers are located relative to the warehouses and organize faster delivery for a low price.
3PL companies that provide logistics services use route optimization software to create the most efficient delivery plan in terms of cost and time. This is true whether they serve businesses or shipping carriers. Many 3PL companies have the necessary resources to make both simple and complex shipments possible.
In a way, 3PL companies are an efficient and multi-purpose link in the modern supply chain. If they meet needs from warehousing and fulfillment to courier management service, they give any company a powerful boost toward meeting its supply chain objectives.
Less Worrying, More Shipping with a Purposeful 3PL
For your business to grow and succeed, you need to make smart decisions. Your decisions need to be based on your supply chain data that can be provided to you by a 3PL. Along with data, 3PL companies invest in updated programs and software to drive results, accessibility, and order fulfillment. You will get to know exactly how and when your freight is being delivered because of the modern technology used by 3PLs.
In addition, you can expect to find that the purpose of a 3PL is to arrange the best rates for you throughout the shipping process. Because they handle all your logistics needs, you end up saving money on warehouse storage fees, late fees, or fluctuating costs due to unforeseen circumstances. You should remember that there are several expensive pieces of equipment that are needed as well. A 3PL has the necessary equipment, vehicles, and a vast network of carriers. A 3PL’s purpose is to keep the supply chain as cost-effective as possible. Save time, money, energy, and stress while a 3PL keeps your operations running smoothly.
If you would like to work with Becker Logistics, you can request a quote or contact us directly today.
