If you're in the world of logistics and transportation, you've likely heard the term 3PL or 3rd Party Logistics provider. Many companies are aware of the existence of 3PLs but may not truly understand the benefits that utilizing a 3PL can provide. While there are many benefits to using a 3PL, there are some situations where using a 3PL can a vital part of overcoming challenges. Here are some examples of common supply chain challenges that 3PLs can help you overcome.
No process or supply chain is 100% efficient, but many companies live with significant inefficiencies without an easy solution to avoid them. A 3PL can help to eliminate unnecessary touchpoints throughout the supply chain which would otherwise slow down movement of products or data. They can also help to reduce the costs of the supply chain, helping to ensure you only pay what you need to.
Labor shortages are present in many areas of supply chains, and these shortages are having a significantly negative effect on companies' productivity. 3PLs can help to optimize labor hours, eliminating wasted hours on unnecessary tasks and allowing you to redistribute your existing labor hours to more essential work. This way your workforce can work smarter, not harder, to increase efficiency.
Lack of Visibility
Visibility is a consistent problem across many supply chains, and it can cause numerous inefficiencies and additional costs. 3PLs help companies to increase the visibility of their supply chain, allowing them to make better decisions and eliminating the loss of data throughout the operations for the company.
Rapidly Increase Order Volume
Your company is doing great, and order volume is increasing at a rapid pace. You're quickly approaching outgrowing your space, but you aren't yet in a position where additional space is a feasible option. That's where a 3PL can come in. They can help to optimize your current warehouse or retail space to make better use of resources you already have, allowing you to increase your order volume without the constraints of your space.