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7 Reasons to Outsource Transportation Management Functions to 3PL providers

Most companies in the modern market rely on 3PLs for outsourced logistics and supply chain services. Whether you’re a B2C or B2B company, for you supply chains have become strategic imperatives, with businesses investing heavily in outsource to create competitive advantages through warehousing and logistics operations.

With that in mind, let’s see what are the reasons to outsource logistics for many shippers, including manufacturing and distribution companies.

  1. Save Money – 3PL’s have many qualified carriers in the network with the ability to handle your type of cargo. We can reduce the number of infrastructure investments in equipment, facilities, and personnel. 3PL allows shippers to focus resources on areas where they are the expert.
  2. Economies of scale – 3PL can provide shipping discounts through economies of scale. 3PL achieves lower operating costs per load due to substantial discounts from trucking companies they have contact with. They can save your budget with the carrier qualification process, technology systems, and consistent freight prices.
  3. No need to buy an expensive TMS – most 3PL companies have already invested in a Transportation Management System or developed their own. We can run reports on your freight, analyze shipping patterns, and keep scorecards on service quality. All of these factors help reduce cargo damage and save time for shippers.
  4. Liability – Third-party companies, as well as brokers, can manage official documents like carrier contracts, DOT safety ratings, and insurance certificates better than most shippers. 3PL’s have a back-office staff that works with carriers and manages the entire freight claims process.
  5. Freight Visibility – The majority of third-party logistics companies have tracking systems to give shippers cargo visibility. They can also integrate tracking into shipper IT systems, automated notices, or even delivery notifications by email.
  6. Utilize more carriers – Third-party logistics companies have contracts with thousands of carriers and know the lanes where these partner carriers need freight. In combination with carrier compliance and vendor compliance accomplished through the TMS, the bottom line will look great.
  7. Reduce back-office duties – 3PL providers have the system and teams to process hundreds of bills a day, and audit all of the bills to make sure the carriers are charging the agreed-upon rates at the same time. Outsourcing logistics could dramatically reduce the need for freight audit and payment personnel.

Summing up, if you need to save time and money on logistics, you should consider getting in touch with Double Power Logistics - our team can help you haul freight with ease and on-time. 

Logistic industry