Outsourcing Services to a Third Party Logistics Provider

Being a One Stop Shop for Third Party Logistics Means Better Integration and Efficiency

The country’s economy is showing signs of improvement. Growth has been incremental, but the future outlook is strong. As demand for products and services increase, how do these retailers, manufacturers and distributors plan to find a cost effective solution for growth? The answer is 3PL, or third party logistics providers.

Today, 3PL’s are more closely integrated with the businesses they partner with than ever. In many cases, 3PL’s handle a number of services for their client, from warehousing, to transportation management. It’s kind of like going to a one stop shop – one bill, one account representative, one big solution.

Streamlining these processes is not lost on the clients either. Many clients we work with see Clark Logistic Services as a critical component to their future. We fill voids and allow for them to focus on what is important, running a successful business.

Don’t believe us? No worries. Here’s some food for thought about the importance of your third party logistics provider from a recent study:

• 74 % of survey respondents outsource to providers who offer two or more logistics services.
• 52 % rate the importance of integration as four or five on a scale of one to five.
• Transportation (36 %) and warehousing services (33 %) are the most critical outsourcing functions when working with a single provider.

Those numbers may surprise you, but then again, they may not. Clients use 3PL for many reasons…including some you may not expect.

In the same study, clients are also asked why they use a third party logistics provider. Here are the top six answers:

• 58.8 % responded cost control, reduce capital expenses
• 19.8 % responded increased flexibility to accommodate business fluctuation
• 18.7 % responded desire to stay focused on core businesses
• 17.6 % responded streamlined operations
• 12.1 % responded improved service to customers
• 12.1 % responded quality control, consistency of execution

As you can see, cost control is clearly the most important need. 3PL’s are able to operate efficiently and at a lower cost. If you enjoyed this post, and want to learn more about third party logistics, sign up for our newsletter. We’ll keep you in the loop on the latest news and trends in service – some of which could be the next competitive advantage you have been waiting.

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