Top 6 Benefits of Outsourcing Logistics
If you’re considering moving your logistics operations to a third-party logistics (3PL) provider, you might be wondering what are some of the benefits of doing this. Generally, things like costs, productivity, and customer satisfaction are extremely important to businesses. Business owners and operations managers like yourself don’t want to lose money, time, or customers.
Luckily, as we’ll explain, working with a 3PL only improves your business in these key areas (and then some). Now, let’s take a look at our list of the top 6 benefits of outsourcing logistics and why making the move to partner with a 3PL could be the best thing for your business.
1. Outsourcing Logistics Cuts Costs
Instead of having to source your own warehouse, fleet, and distribution center, you can pay for a portion of an already large operation that’s running effectively. Your company doesn’t have to worry about acquiring the space (which is so limited in California currently). You don’t have to worry about employing a fleet or managing costs associated with freight. You also don’t have to factor in any overhead associated with logistics.
2. Outsourcing Logistics Increases Efficiency
Unless you have a dedicated and experienced team to manage your fleet (which, let’s face it, isn’t cheap), then your operation is at risk of slowing or stopping if there’s an issue. Outsourcing your logistics ensures that hiccups don’t mean a complete halt to productivity.
Logistics companies spend all their time finding the most efficient and effective ways to complete tasks, meaning everyone benefits from this productivity. When you use the expertise of a logistics partner, you gain efficiency and experience that you can’t match with an in-house operation.
3. Outsourcing Logistics Improves Customer Satisfaction
We live in a “same-day delivery” world that’s really more equipped for a “next or two-day delivery” outcome. Customers are expecting more and more. In fact, in a recent survey, “80% of shoppers surveyed wanted same-day shipping, while 61% want their packages even faster – within 1-3 hours of placing the order.”
This is a challenge many businesses on their own aren’t equipped to handle. Without the right infrastructure in place, same-day delivery isn’t possible. But by partnering with a 3PL that is able to fill this need, you’re able to improve customer satisfaction without having to rework your in-house operations.
4. Outsourcing Logistics Allows You to Concentrate on Your Core Business
You didn’t go into business so you could manage shipping schedules or handle finding the cheapest freight rates. Although you could hire someone in-house or move someone into this role, they may not be familiar with all the ins and outs it takes to create a smooth logistics operation.
Thankfully, when you partner with a 3PL, they already know everything they need to know about logistics. This gives you the opportunity to focus on your core business and get back to why you really started your operations in the first place. Continue experimenting, changing, and improving the need you already filled. Leave the other stuff to your logistics partner.
5. Outsourcing Logistics Gives You the Flexibility to Grow
Growth is something everyone strives for. But in a climate where warehousing space is limited and employees can be hard to come by, what do you do when you’re ready to grow but it’s not feasible? Outsourcing logistics eliminates you having to make tough decisions.
When you’re ready to grow, you can simply work with your 3PL to customize solutions and space to meet your growing needs. Because they’ll have the space already, there won’t be any headache or time loss trying to troubleshoot how to grow.
The same can be said with downsizing. If you have a product line that isn’t working well, you can easily pivot and add back more space or services when the time is right.
6. Outsourcing Logistics Helps You Maintain Compliance
Government regulations for shipping or food labeling can change often. Whether you’re looking to ship internationally or are certified USDA Organic, keeping up with regulations is imperative to eliminate any penalties or delays.
When you have logistics operations in-house, without a dedicated team diligently reviewing these regulations, they can slip through the cracks. A 3PL that handles several clients is diligent and well-aware of changes to regulations, so you can avoid any mishaps with your products and hard-earned profits.
Outsource Logistics with a Partner that Cares
At Prism Logistics, our goal is to help you grow. We view your successes as our own successes because that’s what true partnership means. We treat you as more than just another client; we embrace your goals and help them come to life.
If you’re ready to see the benefits of outsourcing logistics firsthand, please reach out to our team. We will create a customized strategy of services that can fill all your current needs and help you realize the potential that you can grow into.
