Why Companies Are Contracting 3PL Providers

| Wednesday, November 28, 2012
By Lynne Bonner


Both medium and large scale companies are nowadays contracting third party logistic companies (3PL providers) to manage their supply chain activities. This has mainly been due to the many benefits accrued from outsourcing their services including inventory management, packing, picking, warehousing, distribution and shipping. Some of these benefits include. 3pl providers

3PL companies have professional staff that have relevant knowledge and skills on how to handle supply activities. This enables them to undertake their duties in an ethical and professional manner. In addition, they have relevant experience which enables them make quick and effective decisions whenever a situation arises.

These logistics companies have relevant and latest equipments including state of the art software to help in the management of goods and products in the distribution chain. In addition, they have several distribution centers and warehouses that are strategically located worldwide.

3pl companies allow organizations to focus on their main goals and objectives and not concentrate on issues dealing with distribution of products. This is advantageous as company staff have the time to focus their energy on achieving the set out company objectives

This saves time and money to the organization that they would have otherwise used to hire staff, supervisors, rent several warehouses and distribution centers and also buy or hire transportation vehicles.

Furthermore, third party logistic companies are reliable as they can be trusted with a company's product and also ensure that products are delivered on time as they monitor the shipment by advanced tracking software.

Companies that seek to expand to new markets or those establishing a new products often contract third party logistic companies as they usually have an established network system of warehouses and distribution centers to enable the company venturing into new territories not to worry about distribution.




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