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April 2, 2023

Top 5 Benefits of Using Third-Party Logistics

Top 5 Benefits of Using Third-Party Logistics

by Tom K / Friday, 06 September 2019 / Published in Blog
https://www.leansupplysolutions.com/wp-content/uploads/2019/09/Lean-Supply-Solutions

iStock.com/Ankabala

What could a third-party logistics provider possibly bring you? If it seems like managing your own warehouse will give you better cost savings and control, think again. For any business that expects growth, a 3PL provider offers endless benefits and solutions that help you run a better supply chain and stay competitive. Here are the top five benefits of teaming up with these experts.

1. Saves Time

Managing your supply chain will take up a lot of your time because you will have multiple responsibilities to manage and optimize. If your business is growing, you should consider partnering with a third-party logistics provider. They can shoulder that entire workload so that you can focus on your core business. Their experience can also help you avoid costly shipping mistakes that take even more time and resources to resolve.

2. Avoid Long-Term Leases

Another advantage of working with a third-party logistics provider is that they offer flexible pricing. As your business grows or enters periods where things are slow, your provider will adapt to your needs and adjust the costs accordingly. If you try to save money up front by renting your own warehouse space, you may end up wasting money and getting stuck with a longer commitment. Many 3PL companies don’t require long-term fixed leases. Instead, you can pay month to month for space that you use, which saves you money and gives you more control.

3. No Staff Is Required

Choosing to run your own warehouse may sound like a good idea; however, you will need to hire staff to fulfill and ship your orders. Managing your staff will take up valuable time. The benefit of working with a 3PL provider is that they will be responsible for finding and hiring the right people for every job. They have their own warehouse staff and personnel who can handle all the labour required, including receiving, inventory management, order processing, and shipping.

4. Optimized Operations

A 3PL partner will ensure that every aspect of your supply chain is working its best. They will utilize the latest techniques and technologies to constantly update and implement best practices throughout the supply chain.

5. Reduces Cost

Like any smart business owner, you want to find ways to save money without compromising your effectiveness. In the long run, partnering with a 3PL company can save you money as your business grows. You can benefit from their efficiencies and leverage their buying power on packaging and shipping costs. You will also save money on employee cost and taxes, warehousing costs, and overall rates.

Contact Lean Supply Solutions for Supply Chain Management

Working with a 3PL provider can help you deal with multiple challenges that a growing business will face. With our experience in strategizing the supply chain, we can provide you with many benefits as we handle your warehousing and distribution.

If you are looking for the right company to partner with, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick and pack, order fulfillment, and more. To learn more about outsourcing to our supply management in Toronto, or to ask any questions, contact us today.

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Tagged under: 3rd Party Logistics, Supply Chain, third party logistics

About Tom K

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