Thinking about outsourcing your logistics to a 3PL (third-party logistics provider)? Here we’ve listed and explained some of the main advantages your business will benefit from in doing so…
Utilising a professional carrier to take care of a business’ entire logistics operations can be of significant financial benefit. As 3PLs are constantly distributing large volumes of goods every day for a range of different clients, they’re able to negotiate better prices and perks with delivery organisations based on volume and order frequency which you too will be able to benefit from.
They also use the most advanced technology and systems to ensure shipping operations are smooth and efficient. They know the industry inside out and therefore understand the various ways to cut costs while still adding value.
Utilise a Stronger Resource Network
Another benefit of using a third-party logistics provider is being able to make the most of the network of carriers they’ve built-up over the years. They’ll have established relationships with a wide range of reliable drivers and delivery firms so will have no difficulty finding a transport solution for your goods, allowing you to rest assured that your customers will receive their products on time and in good condition.
Ability to Scale with You
One of the most notable benefits of using a 3PL is their ability to effectively help you respond to increases in demand. They have all the resources, personnel, knowledge and experience required to effectively manage an upsurge in sales which is particularly ideal if you’re a seasonal business or are planning a new product release.
Improved Customer Satisfaction
The service you deliver to your customers is of paramount importance. You need to make sure their experience with you is a seamless one from start to finish not only to increase the likelihood of future sales, but also to keep the reputation of your business high.
Utilising a 3PL helps you to achieve this by ensuring the delivery process is an efficient one. They specialise in making sure all orders are picked up and delivered on time by qualified drivers, helping to keep customers satisfied. Research has shown that 67% of customers will switch brands because of poor customer experience, highlighting just how much of a priority keeping customers happy needs to be for your business.
In order to be providing a competent delivery service you need to be utilising the latest technology, such as warehouse management systems, real-time order tracking, data analysis and so on. They help you to speed up your everyday operations and largely reduce the risk of human error occurring. Purchasing all of these tools can soon become extremely expensive though.
However, by using a 3PL, you’re not taking on the responsibility of the management and costs associated with these resources but are still benefitting from their capabilities. Your logistics provider will be using these systems for multiple clients, enabling them to substantially break down the fees you’re required to pay. They’re also experienced in using these systems so understand how to effectively use them to get the best results for your business.
Profit from Professional Supply Chain Expertise
Outsourcing your logistics allows your company to leverage supply chain expertise and give you confidence that your needs are being handled by skilled professionals. They’re a knowledgeable source of industry best practices, keeping up to date with the latest advancements and developments, helping to keep your business’ fulfilment process as efficient as possible.
Enable You to Focus on Core Competencies
Subcontracting a 3PL to manage your supply chain can save significant time for your business. They take care of the paperwork, billing, audits, training, staffing and all other aspects of the delivery process, largely freeing you up to spend more time on other core parts of your business, such as marketing and finance.
They also eliminate the need for you to invest in transportation, warehouse space, technology and staff.
Reduce Shipping Times and Costs
Let’s say for example that your business’ HQ is based in the north of the UK. If you find that a large percentage of your orders are coming from the south of the country, shipping to these customers will inevitably take longer and cost more. However, if you were to partner with a 3PL located closer to these customers, you’ll be able to offer reduced shipping times and maybe even reduced costs as well.
Positioning your supply chain in areas where you don’t have an established presence will also allow you to expand in regions where you were previously unable to actively target.
Experienced Logistics Provider in Bristol
If you’re looking for a trusted and reliable logistics provider to deliver customer focused delivery solutions for your business, please don’t hesitate to get in touch with a member of our team today. Here at Allegro Logistics, we have over 60 years of experience in the industry and are passionate about providing an unrivalled fulfilment service to organisations of all sizes.