The business provides catering services for our daily needs. They obtain raw materials from various sources, which can be from different and far away locations. Few businesses have that kind of capital and time to deal with the complexities of internal supply chains and logistics management services.
Therefore, depending on the volume of shipments, they hire one or more third party logistics, also called 3PLs to provide seamless integration in logistics service because they specialize in geographic areas and logistical areas.
Third party logistics provides the following services:
TRANSPORT
WAREHOUSE
INVENTORY FORECASTING
DELIVERY OF GOODS
Transportation-based third-party logistics specializes in transportation between locations.
Warehouses are one of the most common third-party logistics that handle storage, shipping and returns.
Things to consider when hiring third party logistics:
THE BASICS:
Check basics like warehousing space; whether they have essential equipment or not to ensure no damage occurs during packing, shipping and moving.
EXPERIENCE:
Experience matters. See how long the word is third party logistics be in business. Check how qualified and experienced the staff is in dealing with basic and extraordinary logistical needs.
SKILL:
Look for a company that has expertise in handling specific industrial transportation such as a food grade transport or a milk transport company.
NETWORK:
If they are unable to provide any service, do they have ties with other logistics to provide the same service. For example: if they don’t provide food or milk transportation, do they have any other reputed milk transportation services?
FLEXIBILITY:
Check how adaptive they are in handling exceptions like delayed deliveries, weekend deliveries. Reliable supply chain logistics will ensure shipments are loaded, transported and unloaded, without delays and damage. Don’t forget to ask about any extras, if any.
REVIEW:
Get feedback from the clients they have served before. References will help in gaining knowledge about how the company operates and how it has performed over the years. Ask this client whether the logistics service provider guarantees the safety of the shipment or not.
By hiring a third party logistics service, you take advantage of professional expertise and skills in supply chain management. Following are the advantages of third party logistics services:
- Outsourcing logistics services reduces your resource expenditure to find, create and maintain staff. In addition, since you do not have a domestic warehouse, there will be no expense in maintaining the inventory storage system. The space and money saved can be used efficiently.
- Since you will be outsourcing logistics, you can give your full attention to business objectives.
- Many delivery services offer flexible fee options. If your business is going through a decline phase or decreased volume, some third party logistics adjust shipping and logistics costs accordingly.
Having a third party logistics service is indispensable for the smooth delivery of raw materials to businesses and products to consumers. Check the important points mentioned above before hiring the right person for your business.
