What are the Benefits of Using Third-party Logistics Services?

Third-party Logistics Services

Are you a small scale enterprise owner? Do you have a medium-sized manufacturing business? Are you a national or a global leader in the industry?

It doesn’t matter what the size and volume of your business are. You can still choose a third-party logistics provider rather than handle the complexities on your own.

Managing the supply chain is one of the biggest concerns for any enterprise. Any delay or disturbance in this process could lead to an overall decrease in sales, customer dissatisfaction, and losses for the enterprise.

Especially in today’s scenario where customers want their goods faster, enterprises need to stay at the top and ensure they spend as little time as possible. That too, without compromising the quality of products and services!

This has led to many enterprises handing over the task to third-party service providers who specialize in that area. From moving the goods to warehouse, packaging, and transporting them to the required locations as per the schedule, these companies take care of the supply chain management on behalf of the enterprises.

There are various benefits of hiring the services of the best third party logistics companies in the USA. Take a look at some of them in this blog.

Cost-Effective Services

The cost here is not limited to buying or building extra storage space. It also factors the extra personnel employed, the cost of creating a strong security network, and hiring transportation services. 3pl providers handle all these aspects on behalf of the enterprise.

They can get special discounts when signing contracts with transportation service providers due to the bulk they deal with. When combined, enterprises save a handsome amount of money by letting a third-party provider manage the storage and transportation of the goods.

Flexibility and Scalability

The requirement for goods will not always be the same. The supply will have to increase as the demand increases. Moreover, enterprises expand their operations and production as they grow stronger in the market.

Third-party providers are capable of handling such fluctuating demands with ease. They have the required infrastructure to manage the changing requirements.

Latest Software and Technology

Is it possible for every enterprise to invest in the latest supply chain and warehouse management software? No. But 3pl providers can and should make use of advanced technology to make the process of shipping goods as smooth as possible for enterprises. From storing to recording to packaging and transporting, each stage has to be streamlined and in sync with the other.

Network Capacity

The carrier network is crucial for the success of an enterprise. Third-party logistics providers have strong carrier networks with reliable and experienced members who can handle their part of the job with efficiency.

From licenses to permits to insurance, it is the responsibility of the company to see that all rules and regulations have been followed. Enterprises can expect the logistics providers to connect with the best in the industry and deliver the expected results.

Access to Operational Expertise

The 3pl provider has contacts with various other service providers in the industry. They can not only get discounts but also make use of the operational expertise of other service providers.

While enterprises have to contact and tie-up with each of them separately, the third-party provider already has the entire setup in place. They offer the same to enterprises who make use of their logistics services.

Enhance Customer Service

What happens when products are delivered on time and even earlier to customers? They will be happy and satisfied with the service. This will lead to customer loyalty (if the products are also of good quality) and customer retention. Happy customers will also promote the business and bring new customers.

Risk Management

Many things can go wrong during shipping and transportation. Traffic, vehicle breakdown, the health of the driver, weather conditions, and so on are just a few examples. What do enterprises do in such situations? When they have 3pl providers to take care of the issue, they don’t have to do anything. The service provider will make alternate arrangements.

Market Expansion Opportunities

When enterprises hand over the supply chain management to the best third-party logistics companies, they have enough time and money to focus on their core competencies.

This will provide them with ample opportunities to venture into newer markets and expand wider into the existing ones. Having more market exposure means more customers and increases sales.

Enterprises can increase the overall return on investment without compromising on the quality of products and services provided to customers. Having a proper supply chain strategy makes it possible for enterprises to have an edge over competitors.

The best way to survive competition is by having access to the best resources in all possible forms. Third-party logistics providers offer the same to enterprises for affordable prices.


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