Efficient transport can offer a competitive advantage thanks to the increasing demand for home delivery services. However, most small businesses lack the resources and transport management experience required to manage both outbound and inbound transport efficiently and cost-effectively. Luckily, you can outsource transport management to a third-party logistics provider (3PL) and leverage efficiency and cost savings.
Here are some benefits of outsourcing transport management to a third-party logistics provider.
When you outsource transportation management, you avoid the headache of dealing with numerous suppliers, customers, and carriers. This way, you can spend more time and resources on the core functions of your business, like developing new ideas, production, marketing, and supplier and customer relationships. Your employees also have a lighter workload, which allows them to focus on their primary duties.
Higher Costs Savings
Though outsourcing comes at a cost, the money that you save could exceed the overhead costs. For example, when you outsource transport management, you will avoid the cost of establishing and running a transport department. Also, if your deal involves dedicated facilities, the third-party logistics provider will provide the infrastructures needed for seamless logistics.
Since transport management providers serve multiple customers, they have the larger volumes of traffic they need to negotiate lower rates with carriers. Moreover, you can be sure that your load, no matter the size, will reach its destination with no additional charges, thanks to the transport provider’s ability to consolidate loads with similar destinations.
Due to their huge customer base, 3PLs have high volumes of freight that attract carrier partners with the best facilities and staff. With experienced staff and years of experience at your disposal, you don’t need experience or transportation knowledge to offer satisfactory delivery services.
Since logistics is the core function of 3PLs, these companies invest in advanced transport management systems to simplify their operations. Therefore, if you outsource your transport needs to a 3PL, you benefit from a technology that you may not be able to afford on your own. These systems provide the data you need to make future decisions that improve efficiency and cost savings.
Better Customer Service
When you hire a third-party logistics provider, you can use their expertise and resources to improve your customer service levels. For example, if you feel that next-day deliveries will offer you a competitive advantage, you can hire a third-party provider with the resources required to actualize the strategy.
In addition, when you outsource transport management, you have enough time to focus on improving customer satisfaction by improving your product’s quality. Your staff can also stop dealing with carriers and spend more time ensuring that customers receive excellent service.
Unlike an internal logistics department, third-party transport management companies have enough personnel and resources to cope with any changes in volumes without additional costs or losses. For example, a company that has invested heavily in property, systems, and equipment may suffer huge losses if their volumes decrease, but a company that outsources transport management will just negotiate a new deal.
Since 3PL providers use advanced systems that offer sophisticated analysis and real-time visibility, you can control your deliveries more than you could if you have an internal department with limited resources. You can then access the data you need to forecast and make crucial decisions.
Transport management is a complex function that requires skills, experience, and resources to execute. Therefore, if your business lacks these or you want to concentrate on the core functions, you can outsource transport to a third-party logistics company. At JB Shipments, we have the experience and equipment required to give you the level of service you deserve. Contact us today for affordable transportation services.