Supply chain management and 3PL logistics are essential to many businesses. There are a lot of horror stories out there about 3rd party logistics companies but the truth is that when everything runs smoothly you never hear anything about it. Logistics is the unsung hero of the business world and you may have noticed that there is a lot of misinformation about how products get from the warehouse to the customer.
1. Third-party logistics companies are expensive
It may seem like a third party logistics company is a large investment when it comes to your product shipping. In actual fact, it can save you not only money but also a lot of time and energy. The rates that third-party logistics companies charge are based in accordance with their value and a provide a net saving to the alternative of you handling it in-house.
After you crunch the numbers and look at the costs of having your own warehouse and shipping workforce employed full time and all of the additional payroll, benefits, liability and management that is required on a day to day basis you will see just how much money this can save. Third-party logistics companies are designed to make your shipping process much smoother and remove any headaches that you may have in your day to day.
2. Third-party logistics companies won’t understand your business
This is true, they may not have any experience in your field or industry. This doesn’t mean that they can’t learn. What you need to do is to consider the hiring of a third party logistics company similar to that of any new hire. You should make sure that you get a sense of their attitude and the willingness to adapt their process and procedures to suit your unique needs.
This can have a huge impact on just how well are able to manage your delivery needs in the long term. Your third-party logistics company needs to be with you for the long haul as you only want to onboard the team once. Once you have found a third-party logistics company that you trust then you be confident that you will be building a working relationship that will last many years to come.
3. You lose all control when you work with a third party logistics company
You may be surprised to learn that by using a third party logistics company to ship your product you will not lose any control. In fact, you may find that you have much more flexibility that if you were trying to manage the process in-house.
4. You are one of many customers and not a high priority
Third-party logistics companies rely on their reputation to keep them in business. They will go above and beyond to meet the unique needs of your business and will always be ready to handle any and all of your needs. When you are looking around for your third-party logistics company you may find that there are a lot of great reviews. You can take this as a good sign that they are committed to providing the best service to their customers at all times.
5. You will be limited by their ability to scale
Third-party logistics companies go above and beyond to make sure that they are doing all that they can to keep your business. If you are growing very quickly then you may find that they are more than happy to keep pace with you and scale as you need them to. Your growth is good for them as it is for you.