Top 10 Benefits Of Working With a 3PL

Are you tired of excessive overhead expenses for your business? Do you want your logistics to essentially run itself with the highest efficiency, at the lowest possible cost? Maybe something that feels and operates in a way that is a bit more structured and tailored to your needs? Have you considered working with a 3PL?

That’s what a third-party logistics company (3PL) does. It removes the hassle of micromanaging your operations yourself. Your 3PL partner is there so you can focus more of your attention on the sales and development aspects that move your business forward. A well-rounded 3PL such as Redwood Logistics should cater to everything from the packaging process right up to the management of truck fleets in an effort to help your focus on scaling your business. To see how Redwood can help you connect to win, contact our team of logistics experts today.

Still need more convincing? Check out these 10 benefits of working with a 3PL... 

What is a 3PL?

A third-party logistics company (3PL or TPL) is your partner in all things operations. A company outsources to a 3PL partner to handle the distribution, fulfillment, and transportation aspects of the business. You essentially hand over the operational reigns to a 3PL who has the experience, knowledge, expertise, and resources in the logistics world. 

Why would your company choose to begin working with a 3PL?

Here are 10 reasons to take into consideration...

Lower expenses 

Running operations on your own dime can get expensive. If you’ve already worked with operations, you know the financial strain it can cause, especially for small to medium-size businesses. You have to pay for individual shipping contracts, drivers, trucks, staffing, warehousing (lease or purchase), infrastructure, technology, insurance, and all the rest of the overhead. 

Or you could just pay a small fee to your 3PL and let them handle all of that. Some cost benefits of working with a 3PL: 

• Third-party logistics companies are able to contract with carriers to find the fairest market prices for their clients (you). 
• 3PLs have warehousing space or long-term contracts with centers, at a low cost to you. 
• They can tailor solutions to your specific needs and budget. You get exactly what you need, without any unnecessary extras.
• The best 3PLs have a wide array of advanced technology integrations that can continue to bring your operations to new heights.  
• The 3PL staffs your operations for you. This saves on having to pay wages, healthcare, and benefits (while also not having to manage absences, injuries, and HR). 
• 3PLs carry insurance. This offers an additional layer of protection for you and your customers with regard to lost/damaged freight. 
• They also usually have a team of experts ready to investigate claims, so you don’t have to worry about any errors or damages.
• Wherever your business is now, Redwood Logistics can help make it happen at the right price.  

Third-party logistics companies are aimed at lowering your overhead. In such a competitive sphere, you’re guaranteed to find a company offering great rates and top-notch service, like Redwood Logistics. 

Note that most 3PLs charge based on your custom solutions package. Make sure there aren’t any fees tucked away in your contract that you’re not aware of when working with a 3PL.

Proficiency  

3PLs live and breathe operations. Their department heads have to be experts in their fields in order to compete. They’re professional logistics experts who are up to date on the latest trends and goings-on in the industry. 

Most business owners and managers aren’t experts in operations. If anything, you’re dabbling based on what you can read online. Even if you hire an operations manager who is highly trained, you are still responsible for all of the management, costs, and accountability. 

Get rid of the hassle, while upping your logistics game. Put operations in the hands of 3PL professionals who are highly skilled and proficient in the industry. 

Innovation 

There are a lot of 3PLs you can choose from. The best 3PLs know that they have to continuously innovate if they want to maintain their client base in such a competitive sphere. At Redwood Logistics, we are also looking to provide even more offerings, services, and value to our clients. It’s our goal to always be at the forefront of improving our clients’ supply chains and delivery solutions. 

We do this by integrating technology in a way that streamlines operations at every turn. We offer collaborative TMS, blockchain, tracking software, data transfer, IoT device connectivity, and so much more. Get the most out of your digital transformation with our technology solutions.  

Scalability 

How big is your business going to be in 6 months? 12 months? 2 years? 

If your sales exploded tomorrow, would your operations be able to scale alongside? If you had a decrease in sales with unmovable merchandise, would you be able to scale back to cut margins? 

Even the best predictive AI software can’t predict all the changes in your business. (Most businesses weren’t prepared for a pandemic like COVID-19, for example.) That could leave you with a lot of challenges in terms of space, merchandise, staffing, inventory, trucks, and more. 

Working with a 3PL takes the guesswork out of it. They have the resources and flexibility to scale with your business. If you radically ramp up or if you hit a bump in the road, you can work with your 3PL to pivot and ensure you’re hitting your financial and customer service goals as quickly as possible. They are there to serve you, no matter the size of your business. 

Accountability 

The 3PL is responsible for all things logistics. They take responsibility and accountability for getting your products filled, distributed, and transported (in accordance with your service contract). 

And the right 3PL partner won’t be afraid of taking on this sort of responsibility. They’ll be happy to show you exactly what they’re doing, how, and why. They are paid to be reliable. This means your 3PL should document everything, so you can review and audit as you like. You can see exactly when the 3PL picked, packed, and shipped an item. They may also offer blockchain technology, which is one of the best ways to maintain a high level of accountability in logistics. 

3PLs want to be accountable for your operations. That’s their entire business. So find a partner who is excited to take on the responsibility of your logistics and supply chain. 

Risk Management

Similarly, your 3PL can take on the responsibility of risk management and quality assurance. 3PLs have strict safety certifications and standards for carriers, and they assume the charge of ensuring nothing goes awry. Their quality assurance departments are dedicated to ensuring processes are as effective and efficient as possible to optimize every step of the supply chain. 

Especially since the recent uncertainties of COVID-19, having a 3PL partner who handles all of the risk management for you is a significant weight off your business’s shoulders. 

Customer Service 

Working with a 3PL is one of the best ways to ensure you deliver superior customer service, even fro the backend. With the most advanced technology, your 3PL can help you track your shipment from origin to the destination while updating with any issues or delays along the way. Customers appreciate this kind of operational transparency, so they know when and how they’ll get their goods. This high level of service is often only available with professional 3PLs who have a network of carriers and advanced tech solutions. 

Let your 3PL handle the customer service of your operations, so you can focus on sales and delighting your customer. 

Speed 

Most 3PLs have an interconnected network of carriers and distributors, which means a partnership grants you access to this network as well. You don’t have just one warehouse but multiple distribution centers. You’re not just shipping on one LTL or FTL truck, you’re shipping with multiple carriers. That means fast and efficient shipping times. 

These kinds of national and global connections can be absolutely critical to ensuring your deliveries move quickly from A to B. 

Customized

This network effect also means that you have access to a number of services and offerings through your 3PL. A good 3PL can create a plan based on your specific needs, no matter how complicated or complex they may seem. 

Redwood Logistics offers custom solutions, based on your business’s supply chain requirements. We take a holistic look at your supply chain to figure out exactly what kind of services would meet your challenges effectively. Whether you need enhanced reverse logistics, AI-driven route optimization, multimodal plans, TMS implementation, or so much more, we have you covered. 

Time 

Outsourcing your operations to professionals who know how to do it inside and out is the best way to save time and resources. Without having to deal with all the logistical aspects of the backend, you now have the space to focus on product development, forecasting, customer service, marketing, and sales. You can do what you need to drive your business forward while letting your 3PL handle the rest. 

Our team at Redwood Logistics guarantees you’ll save time with our custom solutions. Our one and only job is to find out exactly what your business needs to thrive and drive forward… and then we deliver on that strategy tenfold. If we’re not saving you money, time, and headaches, we’re not doing our job. We promise to always deliver on what you need.  

Check out our services to see what makes us so unique as a 3PL partner. 

If you’re ready to make major moves in your business, and you’re ready to free up your operations with professionals who know the best way to deliver, then reach out to us to start your free consultation with your custom plan. We look forward to hearing from you!