The Benefits of Using a Third-Party Logistics Company

Companies have two main options with logistics: in-house handling or outsourcing to a third-party logistics company (3PL). While in-house logistics can provide greater control over the process, there are numerous benefits of using a 3PL that can reduce costs and improve efficiency.

Expertise and Experience

Logistics companies with years of experience and expertise will be more familiar with the best practices, technologies, and strategies to optimise the supply chain process. By partnering with an experienced 3PL, your business can take advantage of this knowledge and experience to improve operations and reduce costs.

Technology and Infrastructure

Logistics companies that invest in technology and infrastructure will have the most up-to-date systems and will be able to optimise the supply chain process. Current technology includes warehouse management systems, transportation management systems, and other software and hardware that can help improve efficiency, reduce errors, and provide real-time visibility into the status of shipments.

Using the right 3PL will mean that you won’t have to invest significantly in technology, but you can still reap the rewards.

Scalability and Flexibility

One of the most problematic issues with managing logistics in-house is the ability to scale based on demand. This can be difficult and costly, especially if a business needs to invest in additional infrastructure or staff that are only required at peak times.

Using a 3PL will allow you to take advantage of their scalability and flexibility, so you can adapt to changing demand without incurring high additional costs.

Improved Customer Service

The ability to provide faster, more reliable picking, packing, shipping and delivery information will increase customer satisfaction, which may lead to higher customer retention levels and positive word-of-mouth.

Some 3PLs can also provide customer service support, such as tracking information and delivery updates, freeing up staff time and resources for other tasks and saving you money.

Cost Savings

One of the most significant benefits of using a logistics company is the potential for cost savings.

3PLs have economies of scale that allow them to negotiate better rates with carriers and suppliers, whilst having the expertise and technology to optimise the supply chain process. This can reduce warehousing, inventory management and delivery costs and will free up more time for you and your staff.

Pricing

Choosing the right 3PL for the right price is imperative to fully benefit from the potential savings of outsourcing.

Each 3PL is likely to have its own pricing methodology, so looking into industry averages in line with the level of support you need is essential. However, choosing the right provider over a cheaper one is more critical, as the benefits of using a reputable logistics company are very likely to outweigh any perceived additional costs. Check reviews and testimonials to get an insight into this.

Summary

Look for a company with experience in your industry that can provide the services and support you need to optimise your supply chain process. Consider the technology and infrastructure they have in place, as well as their ability to scale up or down based on demand. And don’t forget to compare costs and fees to ensure you’re getting the best value for your money.

At EC Group, we provide our customers with the highest level of service at competitive prices. We invest in the latest technology, using the most reliable IT systems in the industry. We are based 30 minutes from London, 5 minutes from the M25 and close to London Gateway deep-sea container port, an ideal location for connectivity and reliability to support our customers’ supply chains.

These are just a few of the many benefits of our services, reach out to us today to find out how we can help your business.