Third-Party Logistic Providers specialize in storage, distribution, fulfillment and transport services for manufacturers, distributors, and other shippers. By partnering with 3PLs, shippers are able to focus on having goods available for customers either through their manufacturing processes, importing, or other procurement activities. This can also free up capital for a business, as shippers aren't burdened with the investment of buildings, equipment, and labor needed to distribute their goods.
When successfully collaborating with a 3PL, shippers are able to:
- Minimize Risk
Especially with COVID-19 and labor shortages, we have experienced a series of unforeseen circumstances and delays. When events like this happen, 3PLs are responsible for navigating these issues to find solutions that ensure your operations are not disrupted.
- Provide a Better Customer Experience
We have seen an increase in delivery and response time expectations due to "The Amazon Effect." 3PLs have established distribution networks, which allows you to be more efficient and offer faster delivery to your customers.
- Have Scalability and Flexibility
3PL providers have the ability to scale space and labor according to your inventory needs. Shippers don't have to worry when it comes to seasonal periods, as 3PLs are able to utilize space and resources as needed between fluctuations. 3PLs also have the resources to grow with your business and help you enter new markets.
- Continuously Improve their Logistics Process
3PLs specialize in helping you improve productivity, processes, and communication to streamline your supply chain. They have the tools to adjust and make improvements to each link in the supply chain to ensure your needs are met. By doing this, they help increase efficiency, maximize profits, improve customer service, and reduce wait times.
With these benefits, it comes as no surprise that according to a Gartner, Inc. survey, 66% of logistics leaders increased their logistics outsourcing budget in 2021, and 74% anticipate an increase in the next two years.
Continuing on, Gartner Supply Chain practice's VP Analyst David Gonzalez explains, "Nearly two-thirds of survey respondents said 3PL service providers had a positive or extremely positive effect on their competitiveness. This is the perfect foundation to build a long-lasting and meaningful partnership that enables joint investments and transparent information exchange."
Looking to outsource to a Third-Party Logistics provider this year? The Shippers Group has you covered! With 120 years of experience, The Shippers Group provides a one-stop 3PL, packaging, ecommerce, and transportation solution to our customers.
Contact us today to see how we can help improve your 2022 strategy!
The Shippers Group is a leading national third-party logistics company headquartered in Dallas, Texas with distribution facilities in Texas, Georgia, California, Florida, and Virginia totaling 13 locations and over 5.5 million square feet of space. In addition to warehousing and transportation services, the company provides contract packaging and e-commerce fulfillment to the food, consumer goods and automotive industries. The Shippers Group was founded in 1901 and today employs over 1,500 associates nationwide.