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Five Reasons to Consider Partnering With a Third-Party Logistics Provider

Five Reasons to Consider Partnering With a Third-Party Logistics Provider

Over the past decade, more and more shippers have made the decision to partner with a third-party logistics (3PL) provider to handle their transportation management. The reasons to make the move might be cost savings, efficiency gains, or other business drivers. What can a 3PL offer that will make the freight management partnership worthwhile? Here are five reasons to consider partnering with a 3PL for transportation management. 

  1. Leveraged Pricing in other words, economies of scale. A 3PL provider is sourcing solutions for a variety of clients every day. Therefore, they can tap into the many relationships formed and nurtured over the years to find the best solution specific to each client’s needs. 
  2. Industry Expertise – Leveraging a 3PL gives shippers accessibility to an army of talented personnel who experience multiple challenges and industry pressures daily. By solving unique problems and applying creative solutions daily, a 3PL can fix the leak in the roof long before a total replacement is needed.
  3. Optimization – Many 3PLs have the technology available that allows a shipper to ship more efficiently. It may be consolidating products going to the same destination region or combining two regional shipper’s freight together to maximize a trailer’s space. Optimization provides shippers with cost savings by leveraging their 3PL’s vast client network, carrier relationships, and robust technology.
  4. Task Specialization – A 3PL will often divide all the different tasks involved in the transfer of the freight amongst team members who specialize in an individual task. This allows a team of experts to complete the transaction more efficiently and effectively with their wealth of knowledge.
  5. Data Analytics – The volume of data a 3PL recoups and analyzes daily allows for industry comparisons and optimized transportation solutions. This allows for effective data-driven decision making upon planning upcoming shipments.

A 3PL provider can seamlessly integrate into your supply chain, providing you with the transportation management solutions you need to become a more profitable company. To discuss other ways your organization could benefit from a freight management partnership and share the current supply chain challenges you're facing, call ODW Logistics at 614-549-5000.

Freight Consolidation Case Study