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.
- 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.
- 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.
- 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.
- 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.
- 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.