Industries Using 3PL Companies to Increase Efficiency & Profitability

Logistics services are designed to solve the problems of the supply chain for the businesses in various industries to move goods from the source to the destination. 

Apart from retail industries, there are a lot more other industries that are widely using the services of Third-party logistics companies to manage the workflow efficiently.  

Here is a look at the top 5 industries that take bits of help of transportation and distribution work of 3PL companies: 

1. Manufacturing 

Manufacturing and logistics industry goes hand in hand. A manufacturer must receive all the key components and raw material in time to run the production efficiently. A little mismatch in timings or planning may lead to the whole factory or production can come to halt. 

An experienced 3PL company can quickly and efficiently move the required parts to long distances without fail. They can maintain the steady flow of raw, materials to keep the production moving without hindrances. Using services of a logistics service provider can be beneficial for manufacturer both in terms of time and money involved in managing own fleet of trucks for transportation. 

2. Pharmaceutical 

Just like the medical industry, the pharmaceutical industry has to abide by the strict rules of construction. Moving shipments of various medicines and health care products require constant attention to protect the integrity of the products being transported. Various medicines do need cold storage during transportation requiring capabilities of the transport truck. Various services of warehousing by logistics can help in the efficient movement of these medicines.  

A transportation company works by understanding the importance of transporting medicines in the required state to meet the high industry standards. These experienced professionals can maintain strict temperature control required. Temperature controlled logistics enables to keep control of the supply chain from production to market. 

3. Restaurants / Hotel Industry 

Managing a restaurant or hotel requires a fast supply of ingredients and other groceries. Getting the ingredients on time is the foremost requirements of the hotel industry to serve its customers. To preserve the quality of the service industry, proper attention is required to sequence properly all the operations of the supply chain. 

A transportation company works with regional suppliers and vendors to cut down the extra time in exportation and fulfil the urgent requirements. Quick transport and warehousing services can preserve the quality and flavour of the dishes and other provided services. 

4. Construction Industry 

For the construction industry, the sequential workflow is extremely necessary to keep the production on time. A minor delay in supplying the raw materials or pieces of equipment may result in huge losses in terms of the cost involved. A construction manager needs to have a close eye over raw material procurement and proper supplies. 

A Third Party logistics company can provide the services of order management, raw material procurement and handling supplies of the equipment by maintaining contacts with various dealers. A 3PL company has strong contacts and can provide timely solutions to all transportation and distribution-related issues.  

Final Thoughts 

Many 3PL companies are promising to provide solutions for the business. But a business person should choose judiciously that service provider who matches with the unique requirements of the particular industry only.

5 Logistics Problems that can be Solved Using a 3PL Company

If you run a business that requires shipping and transporting goods to customers, chances are you need to focus on product quality along with pleasant customer experience.  

Collaborating with different service providers for different processes can negatively impact the business, and managing all the logistics process such as distribution, packing and transportation all by yourself can be very intimidating. That's where Third-party logistics can offer some assistance. 

Let's look at the most common challenges faced by the businesses in logistics and how a 3PL company can help in facing those challenges.

1. Space restrictions
The basic nature of any retail, manufacturing or any other industry is that it will require space to store their products before they are removed for delivery. Goods need to be stored somewhere safe before they are moved further in the supply chain. Owning warehouses individually requires maintenance and labours which can be unaffordable for the small businessman.  

If your business is expanding more than the warehouse capacity, a 3PL company can provide you with long term solutions for warehousing and distribution to facilitate your business growth.

2. Labour Shortage
Hiring and retaining the skilled workforce in the supply chain is among the biggest problem faced by businesses. More than 50% of the business owners find it difficult to manage the need of the staff to enhance customer satisfaction.  

You might find yourself unable in the process of recruitment, but a 3PL company has all the resources and skills required to recruit and retain the employees on your behalf. With the increasing expectations and customer demand, a 3PL company can help you to retain a dedicated team that can support you to ace the competition.

3. Increased Volume of Orders
With the increasing online shopping trends, businesses need to be on their toes by keeping most of the products in stock for online delivery. A sudden change in trend can lead to bulk orders at any time. Catering to these bulk orders requires increased investment for storage and packing.  

A right 3PL company can help to expand this online business by managing the huge order quantities and by successfully collaborating with various suppliers and vendors .

4. Lack of Transparency
Increased demands and supply chain processes have made the logistics operation complex. Tracking the movement of goods and raw material without the help of any technology is nearly impossible. Having advanced software technology often results in the poor return of investment due to under usage of the various applications. 

A 3PL service provider can help a business to get the most out of the already installed technology by tracking the real-time status and requirements of goods and raw materials. 

5. Unnecessary Costing
Traditionally, a business should invest in warehouses, managing own fleet of vehicles, labour workforce. But in reality, a business can prevent all these unnecessary expenses by taking the services of a third-party logistics provider.  

Cutting down unnecessary expenditures can be the first step towards upgrading the business and concentrating on core activities of trading or manufacturing. It also protects the business from excessive loss due to shutting down of any division.

Final Thoughts 

A 3PL company can accurately analyse the existing logistics operations and help you in cutting down the unnecessary costs and touchpoints. Using the above-analysed information they can recommend better options for an efficient work environment.