Why Choose 3 PL Providers for Your Company?

by | Mar 24, 2017 | Transportation & Logistics

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Many business owners today struggle to make ends meet, and this can make it hard to stay afloat. For example, shipping rates seem to go up all the time, and you have to search for the best rates frequently. In fact, freight is often a huge logistics problem, but there is a simple solution. 3PL providers are there to relieve the burden of shipping from your shoulders. Here are some of the benefits you can enjoy.

What Does 3PL Mean?

3PL stands for third-party logistics. Instead of taking care of all the shipping details, you hire freight experts for the job. They have years of experience in the industry and know the most efficient and cost-effective shipping strategies.

Benefits of 3PL Providers

It’s time-consuming to contact carriers and compare shipping rates and services. Also, because the freight business changes often, you must keep up with all these changes. One of the most important benefits of hiring third-party logistic services is time. You’ll have a lot more time to run your business because you have fewer things to worry about.

Cost Savings

Shipping is one of your biggest operating expenses. A 3PL provider company acts as your agent or broker between you and all the freight services. They know which companies offer special rates and which ones give the best service. In addition, your freight broker negotiates the best shipping terms and can sometimes get discounts that you do not qualify for. The savings is significant and the more things you ship, the more you save.

Labor Costs

If you pay an employee to take care of your shipping needs, it’s best to outsource this service. 3PL providers have a lot of experience in the shipping business, and you’ll have fewer people on your company payroll. This saves you many employee benefit costs.