Know Hows of a Third Party Logistics

Know Hows of a Third Party Logistics

Business provides services catering to our daily needs. They acquire raw material from multiple sources, which can be from different and far off locations. Not many businesses have that kind of capital and time to deal with the hassle of an in-house supply chain and logistics management service.

Hence, depending on the volume of consignment, they hire one or more third-party logistics, also called 3PL to provide seamless integration in logistics services since they specialize in geographical regions and logistics area.  

A third party logistics provides the following services:

TRANSPORTATION

WAREHOUSE

INVENTORY FORECASTING

FREIGHT FORWARDING

The transport based third-party logistics specializes in transporting between locations.

The warehouse is one of the most common third-party logistics which handles storage, shipment and returns.

Things to consider when hiring a third party logistics:

BASICS:

Check the basics like warehousing space; whether or not do they have the essential equipment to ensure that no damage is done at the time of packing, shipping, and movement.

EXPERIENCE:

Experience matters. See how long has the said third party logistics been in business. Check how qualified and experienced the staff is about handling the basic as well as the exceptional logistics need.

EXPERTIZE:

Look for companies that have expertise in handling specific industry transportation like food grade transportations or milk hauling companies.

NETWORK:

If they are unable to provide any service, do they have tie-ups with other logistics to supply the same. For example: if they do not cater to food or milk transportations, do they have any other reputed milk haul services at their dispense?

FLEXIBILITY:

Check how adaptive they are in handling exceptions like delayed deliveries, weekend shipments.A reliable logistics of the supply chain would make sure the shipment is loaded, transported and unloaded, without any delay and damage. Don’t forget to ask about any additional, if incurred.  

REVIEWS:

Get feedback from the clients they have served previously. References will help in getting knowledge of how the company operates and how it has been performing over the years. Ask these clients whether or not the said logistics service provider ensures the safety of the consignment.

By hiring a third-party logistics, you are utilizing the expertise and finesse of professional in the supply chain management.Following are the benefits of a third party logistics services:

  • Outsourcing a logistics service will reduce your resource expenditures of finding, creating and maintaining staff. Also, since you don’t have a domestic warehouse, there will be no splurging on maintaining the supply storage system. Space and money thus spared can be utilized efficiently.
  • Since you will be outsourcing the logistics, you can give your full attention to the objective of the business.
  • Many freight services offer the option of flexible charges. If your business is going through a down-phase or the volume is declining, some third party logistics adjust the shipment and logistics cost accordingly.

Having a third party logistics service is indispensable for a smooth delivery of raw materials to the business as well products to the consumers. Check aforementioned key points before hiring the one that fits your business.

Editorial Team
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