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Logistics Benefits | Xl Logistics Blog

The Logistics Benefits Of Hiring A Third Party Provider

Posted on 02. Jul, 2013 by in 3pl, Shipping, Trucking

A 3PL (third party logistics provider) is a company that has experience and expertise in storing and transporting goods. They employ the brightest and best supply chain managers and engineers, combining cutting edge software with analytic minds to create the most efficient supply chain possible. Third party providers can offer better reliability, quicker shipping times, smaller inventory levels and larger capacity utilization, compared to a solitary shipper.

Freight carriers are in competition with each other to work for third party logistics providers. Because 3PLs hire several carriers, they can provide a range of services and shipping times. As a result, shippers can enjoy more ocean sailings each week.

Thus, one of the best logistics benefits of these providers is that there are more kinds of services and booking options, as they have a network of available contractors. Furthermore, because of the competition between freight carriers, 3PL providers have more clout and negotiating power, compared to individual shippers. Consequently, you can get more affordable rates, lower per diem and demurrage penalty charges and better free time allocations.

A third party logistics provider uses highly advanced software to monitor and route all the business they are responsible for. They employ knowledgeable engineers and mathematicians to manage client’s accounts. By organizing all transportation modes and supply chain procedures, they can report and combine separate information, via value added data services. The logistics benefits of these services is increased time and monetary savings. Undoubtedly, you should leave your supply chain management to the professionals.

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