What a 3PL Companies Can Do for You
4 min read
What exactly is 3PL? 3PL (Outside Logistics Company) is a non-asset-based company (no trucks or equipment) that can help you save time and money by cutting costs, reducing risks, and implementing your logistics strategy. This is how we do it…
Huge savings in interest rates … Impossible!
In general, the prices you’ll find with 3PL companies near me are competitive with what you’re paying. Don’t expect any big price cuts just because you decide to consider 3PL. Prices are determined by market price rather than cost. If you’ve been collecting prices on your tracks for a while, you probably know the market rate much better than a 3PL company. You should share your pricing information with your 3PL so they can work with you to create a race-neutral package for you. You may be wondering, “What’s the point of using 3PL if I can’t get the price savings?” Mode switching, order tracking efficiencies, time savings and integrations, improved carrier management, freight visibility, and reduced risk are all benefits.
Change Modes
Do you ship a lot of standard LTL? Working with 3PL allows you to use their computer tracking systems to identify patterns that can be incorporated into truckload shipments. For example, if you ship 12 pallets twice a week from Chicago to Toronto, shipping a full truckload once a week will save you a lot of money. Although this may seem like a simple task, these opportunities are in your shipping data. 3PLs have programs that can find such opportunities and help you take advantage of them. The cost per pound will decrease when you switch from a light truckload to a truckload.
Order tracking
How many times have I had to pay for express shipping because something went wrong? The problem with many charging software packages is that they stop at charging docks. The order is completed as soon as the truck is loaded. What matters is that your customer is satisfied and that your product arrives on time. 3PLs software is used to manage your shipments from the dock to the customer. Many provide access to a web ‘dashboard’, allowing you to view the status of any shipment you have on the go on a single screen. Not only can you track all of your shipments, but you can do it from anywhere. Since the majority of these dashboards are web-based, you can access them from anywhere, including your home, your Blackberry, and even the golf course!
Save time
Do you have a road map? Have you spent too much time trying to charge it at all of your drop-off sites? You should understand how difficult this is. Furthermore, even if people are following it, have you ever thought about the amount of time your employees spend calling the listed carriers to find someone available when needed? There is a lot of wasted time here. Shouldn’t customer service representatives be serving your customers instead of looking for trucks? You can probably guess where this is headed. This will be handled by a third-party logistics provider. When you need a truck, you’ll always have one. 3PL will handle the majority of the coordination between your factory, your suppliers, and your customers, allowing your customer service representatives to focus on what they do best: serving your customers and taking orders!
Better management of telecom companies
Do you have a large number of contracts, appraisal fees, fuel surcharge schedules, insurances, licenses, etc. to manage? If you’re like most moving professionals, you’ve got plenty of them! 3PLs usually have software designed to keep track of all of this. They can also help you negotiate standard assessment fees and fuel surcharges. Not only will this save you time registering and collecting all this data, but it will also save you time in the invoice approval process.
See the shipment
Have you ever thought about the cost of building a software system to help you track and manage your shipments? The purchase, implementation, and maintenance can cost tens of thousands, if not hundreds of thousands, of dollars. With 3PL, you can make use of their technology for free. That’s right, it’s free. Most 3PLs will be able to tailor their software to your specific requirements. You can get all shipment visibility and order reporting for free.
Risk mitigation
Many people do not take into account the risks they face when loading cargo onto a truck. Is this ship safe? Is it insured? In today’s world, traffic managers must consider these factors. In recent court proceedings, shippers have been held liable and ordered to pay significant settlements to people injured in trucking accidents because the shipper failed to conduct “due diligence” about the carrier chosen to transport its shipments. This is Terrifying. The choice of carrier is often delegated to customer service representatives or warehouse employees who load trucks at many organizations. This is a disaster waiting to happen. There are very real risks here that must be managed and minimized. 3PL has systems in place for collecting insurance policies from carriers before they expire. To check the carrier’s safety rating with the DOT and verify licenses. All this can be done for free if you use 3PL.
In short: why should you use 3PL?
- Savings from switching modes
- Order tracking systems provide cost savings.
- Saving time due to the choice of carrier and the imposition of routing guide
- Free carrier management
- Free Shipping Tracking Software
- Carrier Qualification Service at no cost
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