There are not many third-party logistics companies, or 3PLs, but the few available play a crucial role in the chain of production and getting goods to the consumer. 3PL companies provide a variety of services that facilitate the movement of goods from the point of manufacturing to another until they get to the final consumer. Without such services, many industries would simply not grow, as companies would find the cost of doing business to be too high. Some of these services include dedicated transport, procurement, logistics management, freight auditing, shipment tracking, and inventory management among others. There are so many benefits a company as well as individual investors can accrue from 3PL companies.
1. Make Significant Savings
3PL companies reduce the cost of transport by between 5 to 25%. Instead of going through the stress of producing goods then transporting them to various destinations, manufacturers can concentrate on the production of goods, then sub-contract a 3PL company to do the distribution. The advantage is that 3PL companies specialize in handling goods, and will ensure that your goods get to their destinations in good condition and within good time. Specialization and division of labor play a crucial role here, ensuring that each party plays their part to their best level. Manufacturers get to save also on smaller shipments by sharing spaces with other manufacturers. Such a service would cost a lot if an individual manufacturer was to try doing it alone.
2. Transport Regulations
3PL companies keep themselves updated with the various regulations of different countries. If you have a company in the United States of America, you might not be aware of the changing regulations in European companies. Such knowledge is paramount to the running of your business, as goods have to reach your clients for your company to thrive. Working with a 3PL company ensures that you do not have to worry about the changing regulations, as the 3PL companies deal with such issues, thus allowing you to focus and maximize production.
3. Warehousing
May businesses find building warehouses a daunting challenge. It is an added cost that can significantly increase the cost of doing business. 3PL companies not only transport and distribute your goods, but also handle storage and repackaging. It is cheaper to share costs of the warehouses and the services included through a 3PL company than trying to handle all that as a manufacturer. 3PL warehouses are handled better and have advanced facilities to cater to various industries.
4. Security and Safety
3PL companies also provide adequate security for manufacturers’ goods. Established 3PL companies are insured, in addition to having specialized equipment for handling goods. You can rest easy as a manufacturer knowing that your goods are in good and safe hands. 3PL companies’ main focus is always to handle goods in the best way possible and deliver them as required to their consumers.
5. Individual Investor Profits
As an individual investor, you could earn a great deal if you invest in a 3PL company. There are so many avenues through which investors can make handsome profits in this industry. One can provide transport services, security, warehousing, and many others.
