12 Business Benefits of Outsourcing Trucking Logistics
In business, the right partners can be powerful allies in your quest for growth. Outsourcing trucking logistics is a smart move for a successful business. Outsourcing a trucking logistics company dramatically benefits your business. It allows you to concentrate on the core aspects of your business, knowing that an experienced partner is on hand to take care of your shipping and logistics needs.
The following are 12 core benefits of outsourcing trucking logistics.
1. Efficiency and Cost Savings
Outsourcing a third-party Logistics Company means you are bringing in technology, scale, experience, and the best operational practices. This, helps your business increase its overall transportation management efficiency, and save on costs. 3PLs combine both the scale and volume of customers’ freight to negotiate competitive rates.
As a business, you are always looking for a way to reduce costs. 3PL logistics come with optimization tactics that help companies generate sustainable long-term savings. A technology-driven Third Party Logistics Company provides shippers with a platform for logistics management that feature end-to-end automation.
2. Gain Access to Technology
Third-party trucking logistics companies have cutting-edge logistics technology, which helps businesses drive down costs, improve supply chain efficiency and visibility. They empower your business with transportation management software that integrates logistics operations with CRM, ERP, back-office systems and order management.
This flow of data provides visibility to the supply chain, process automation, and the business intelligence needed to transform and grow a business.
3. Improved Risk Management
Risks are an inevitable part of any supply chain. By outsourcing a third-party logistics company for your trucking needs, you can help your business mitigate incidents, and prevent downtime. Most 3PLs provide 24/7 monitoring and visibility, which help you anticipate and respond to issues, ensuring the supply chain remains operational. Third-party logistics companies are using pioneering technologies such as AI, and machine learning to solve business problems before they occur. This eliminates the possibility of negative impacts on your products.
AI can gather and analyze thousands of data points from the current environment, historical events and future projections. This is done to manage disruptions such as weather, reduce downtime, and effectively budget and plan logistics operations and spend.
4. Focus on Core Business
A day is not long enough to make you an expert in logistics. With 3PL, you can concentrate on your core business by developing new products, expanding your market, and growing your company. Outsourcing management for your trucking logistics means you are putting your day-to-day logistics operations, execution, and strategic execution in an entity that can be trusted. This frees up time, so your employees can focus on customers, which in turn expands your business.
5. Acquire Custom Solutions
Using multimodal shipping services and logistics mitigates capacity challenges to meet the delivery expectations of your customers. Full- service third party logistics companies have access to a wide range of transportation and carrier services, which combine to give your business a customized logistics solution.
6. Improve Customer Satisfaction
Customers and businesses are demanding better, faster delivery services. Next-day and 2-day delivery options are now the market standard. 3PLs can manage these delivery demands by tapping into their resources and networks to provide a just-in-time logistics solution designed to meet your buyers’ unique delivery needs.
7. It Develops Internal Staff
Outsourcing your trucking logistics to a 3PL company helps expand or enhance the expertise of your internal staff. A third-party logistics company brings onboard operational best practices. It also works alongside your team, which in the end will help them develop new sets of skills and process efficiencies. Adequately trained employees are a valuable asset to your organization.
8. You Avoid Distribution Infrastructure Investments
A third-party trucking logistics company has invested in systems and buildings, so you don’t have to. These costs are usually included in the overheads you end up paying but are shared among several clients. As a business, you get to benefit from this extensive allocation of costs. If your deal involves a dedicated facility, a 3PL company could invest in the infrastructure should you agree on a long-term partnership.
9. You Don’t Have to Invest In Fleets and Costly Maintenance
Third-party logistics companies provide their customers with the option of a dedicated contract carriage. The contract gives them a private fleet without the cost of owning the trucks, hiring and retaining drivers, maintaining equipment, and managing liability, compliance and safety issues.
10. Freight Costs are Shared
Sharing freight costs can improve the profits of your business. You can match your freight with that of others shipping to the same location. This works by consolidating 3PL packages into full truckloads to allow savings of up to 25% compared to a less than truckload shipping service.
11. Quickly Access New Markets
When breaking into a new market, building and scaling up distribution capability on your own takes time, which you might not have. The right 3PL company can interface with systems, bring in inventory, and have your shipping services up-and-running within 30-60 days.
12. Scaled-Up Infrastructure
Most 3PL companies have national and global distribution networks that make it easy for a business to expand its network quickly and at variable, affordable costs.