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Third Party Logistics Can Help Your Small Business Save Big

Posted on 29. Jan, 2014 by in Shipping

As a small business, you have vital aspects to consider in keeping your business running, growing, and profitable.  One of these is having a logistics operation that runs smoothly.  There are many advantages to hiring a third party logistics provider to handle your small business logistics.  One of the main advantages is the cost savings for your business.

When you outsource, there are a lot of ways to save money without sacrificing quality.  It can be expensive setting up your own logistics department because of the fixed expenses in equipment, labor, storage and more.   Since labor is the largest expense that small businesses face, outsourcing can help avoid the costs of additional employees, including wages and insurance.

With outsourcing, your business will not have the overhead expenses that come with storage and warehouses or keeping inventory on-site.  A third party logistics provider could provide warehousing for your goods more cost effectively, because they can spread the expense over several clients.  The same applies to shipping, since a third party can use their size to bargain with shippers for more competitive pricing.  They also have the technology to help with shipment tracking.  They may have a professional customer service department to handle customer inquiries.   All these benefits reduce costs, as well as facilitating the operation of your business more efficiently.

Instead of trying to purchase the technology to run your small business logistics, why not let a third party keep up with the hardware upgrades and the top-of-the-line software needed?  Since logistics is their business, they often have the technology and the resources required to expedite your shipping and delivery needs.

You know what you do best and that is taking care of your business and the many components that require your expertise.  But when it comes to small business logistics, there is much to be gained, and money to be saved, in letting the experience and resources of a third party logistics provider use their business to help take care of yours.

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