Third-Party Logistics
Since it contributes about 10% to the non-financial business economy, the UK logistics industry plays a huge role in the national financial health.
The sector offers businesses various avenues to streamline the supply chain. As such, we recommend third-party logistics (3PL) providers as one of these resources to boost supply chain management.
Third-party logistics solutions involve fast-moving freight, affordability, and efficiency. A business can also rely on a 3PL to act as a link to the relevant supply chain.
Outsourced fulfilment offered by 3PLs allows for productivity. Companies no longer have to invest in logistics equipment, training or facilities. It’s because 3PLs help streamline the supply chain in the following ways:
Help in Real-Time Inventory Tracking and Management
Most businesses don’t know the exact amount or number of products they have at a given time. It becomes difficult to process orders without information on the available stock.
We advise companies to partner with a third-party logistics company for up-to-date, accurate inventory data. The 3PL provider will review the inventory requirements and storage options. This way, it’s easy to spot opportunities to cut costs and drive efficiency.
3PL partners also offer inventory tracking and management programs, processes, and tools. Businesses can use them to get accurate reports of the available stock. The resources also save time when fulfilling customers’ orders.
Partnering with a 3PL provider gives a business access to the provider’s international logistic network. The network comprises distribution and warehousing facilities and fulfilment centres. Logistics personnel and resources also form part of the network.
Consolidate Shipments and Optimise Timelines
A reliable 3PL company can consolidate shipments on behalf of a business. With consolidation, the provider combines items from several shipments into one. This way, it is easier to transport them together.
The 3PL can also help with deconsolidation, which has the opposite effect. With deconsolidation, the company will split shipment goods into smaller parts. As a result, it will help transport the split shipments to different destinations and recipients.
Thanks to their large resource networks, 3PLs manage to consolidate and deconsolidate shipments. It costs less to do this without interfering with the fulfilment efficiency.
3PLs count on advanced technology to optimise timelines. Insights from these tools allow them to adapt to low and high-order volumes. These logistics companies also know how to comply with the regulations that can hinder shipping in certain circumstances.
Optimise Delivery Routes to Increase Efficiency
Working with a 3PL is a great way to optimise delivery routes. It’s because these providers have plenty of route optimisation tools.
Businesses get to access driver tracking and dispatching in real time. They also enjoy automated delivery routes for returns and drop-offs.
Route optimisation tools used by third party logistics companies are fast, reliable and intuitive. They also allow for task and fleet management. Businesses can use them through a streamlined user interface with various customisation features.
Companies enjoy faster delivery times and more accurate deliveries with optimised delivery routes. Route optimisation also increases visibility and lowers maintenance and gas costs.
Find an Ideal Transport Mode for Shipments
A transportation 3PL partner handles the transport of services and goods. It leverages its existing transportation network to carry out this role. As a result, a business won’t have to worry about last-minute delays.
Third-party logistics examples include transportation companies, carriers and freight forwarders. These stakeholders help businesses ship products to their customers.
The transport modes available to companies include container ships, trains, planes and vehicles. They depend on the type of goods being shipped.
Air is the best option for fast shipping times over a long distance. But it is prone to harsh weather conditions and attracts a lot of upfront costs.
Trains are more affordable compared to other transportation modes. A 3PL may recommend it to haul large loads across the country. The eco-friendliness of trains (low exhaust emission) also makes them attractive for shipping goods.
Container ships are suitable for large volumes of goods. The 3PL provider can consolidate shipments transported via ship for cost savings.
Harness Automation Technology
3PL partners rely on automation to make their operations efficient. With automation, logistics activities need fewer workers and take place faster.
Businesses that partner with logistics services access versatile, scalable automation solutions. This way, they can handle the unpredictable volume and variety of warehouse goods.
Automation technology offers space and cost efficiency. It takes less time to install and requires less effort to maintain, improving the return on investment.
3PL providers can implement automation at different levels to increase efficiency. At the entry-level, automation helps in conveyor sortation and weight checks. Automation is also a great alternative for repetitive tasks done by humans.
Access to Real-Time Reporting and Analytics
Third-party logistics providers apply analytics in logistics to get meaningful insights from data. Analytics help coordinate operations cost-effectively and timely.
Businesses that outsource fulfilment get access to analytics and reporting. As such, it is easier to track shipments and understand factors that impair shipments,
Data is important in the logistics world since it helps with decision-making. A business can spot key improvement areas with the large data sets collected by 3PLs.
Benefits of analytics and reporting tools include increased productivity, accuracy, communication and timeliness. Personalising the customer experience also becomes less daunting with these tools.
Access to Expertise and Network
Third-party logistics providers usually have large carrier networks. They also partner with other stakeholders in the logistics sector to facilitate smooth shipping. Businesses can count on them for technical resources and expertise.
A 3PL offers supply chain help through its extensive experience and knowledge in supply chains. Leveraging this knowledge and experience can help a company grow.
Supply chain partners include custom packaging providers and marketing agencies. They also include legal experts and fulfilment centres spread across the world.
A business needs this partner network to expand its reach. As such, it can efficiently ship orders across different locations and at reduced costs.
Looking for Third-Party Logistics Solutions
Third-party logistics solutions help streamline the supply chain for businesses. We recommend working with a reputable one for custom logistics solutions. These solutions can meet complex onsite integration, packaging, assembly or warehousing needs.
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