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.

Using 3PL Logistics to Optimize your Supply Chain Management

The supply chain is an inclusive process that starts right from the manufacturing and ends upon the delivery of the goods to customers. Everything from the procurement of raw material to storage and transportation of manufactured goods comes under the single roof of Supply Chain Management.

There is no doubt that global supply chains are becoming complex day by day, and there are many companies out there who don’t have the right expertise to handle these operations effectively.

That is the reason that companies and international business persons are working with Third Party Logistics companies to not only manage cargo but to move cargo as well. 

 

Here are 5 reasons why collaborating with a  3PL company can help you in optimizing the supply chain:

One-Stop Solution 
One of the largest benefits of including a 3PL service provider in your business is having the bundle of services. There is no need to roam around for demanding pricing quotations and available services in the market. When you have a project in hands which needs to be completed, you can avail services like freight forwarding, inbound logistics, warehouse and distributions all from a single service provider.

Growth Opportunities
When you are managing all the supply chain function in-house, you may find it difficult to manage all the resources and norms of various countries. The professional people working in Third Party Logistics companies have a varied knowledge of various countries. With the help of these people expansion of business in distant countries is possible without being burdened of knowing different rules and regulations.

Extended Experience

These Third Party Logistics companies are well-versed with industry practices. These companies keep track of the latest technology and cost-saving facilities. Upon getting more than one facilities from these companies, you can have cost-effective solutions for various business needs. When it comes to dealing with the complicated procedure of handling custom clearances and paperwork, their years of experience becomes useful by restricting the possibility of something getting wrong throughout the supply chain.

Consistency

Dealing with a single service provider for all your supply chain needs, there would be no surprise in obtaining different services. You will be well-versed with the working style of the company, along with all the due-diligence and quality checks applied to those services. Whether the new project you are taking is long-term or short -term, you will be assured that the job will be done with the utmost care.

Increased Resources and Network

While working with a professional logistics service provider, you can get access to the vast world of connections and resources. By taking the expert services of these service providers, you can safeguard your business from possible threats and inconsistencies of the world trade. You not only get access to private fleets, but you can also grab an opportunity to grab special contracts as well.

Final Thoughts

All in all, a Third Party Logistics company can provide you with a lot of features that can help in expanding your business with increased customer satisfaction. They provide you facility of being in touch with the shipment process and updates you about the proceedings as well.

What are the Various Job Responsibilities of a Freight Agent?

When you are dealing with international business, using the services of freight forwarding becomes essential. A freight forwarder or freight agent is the person who acts as a middleman between the businessman and transporter. 

The process of freight forwarding might seem very difficult if you try to do international shipment without the help of freight forwarders.  

Following are some of the responsibilities fulfilled by these freight forwarders:

Planning and Advising 

Services of freight forwarder may vary from others, depending upon the services chosen by you. Depending on the services provided, there are some services that you can avail from these forwarders for hassle-free transportation of goods/consignment. These agents can help you in deciding the production cost, other freight expenses.  

They can also help in deciding the most viable route for effective transportation. They can also help by acting as a middleman and save a lot of time for your business by choosing the most appropriate freight forwarder for you. 

Knowing All the Restrictions 

While importing or exporting it is very essential to know the import/export restrictions of the destination country. Freight agents are the people with experience, knowing all the rules and regulations of different countries.  

They can guide you about the permissible quantities of the goods allowed. Although the list of prohibited and restricted goods vary from country to country, yet a common list of restricted items include Dangerous goods, drugs, alcohol, etc.You need to be extra careful and know the rules if you want to export/import these goods. 

Customs Clearance for the Client 

Every country has its own rules and regulations for custom clearances. Knowing all these rules is not possible for a businessman hence, here comes the role of a Freight agent or freight forwarder.  

A freight agent knows all the documents required for customs clearance and works in favour of the client by assisting in the fast clearance of the goods. They take responsibility for all the paperwork and documentation. 

Maintaining a Vital Network 

The strong network and contract of the freight forwarders help the clients to have timely deliveries. They are professional people and can manage adverse situations easily.  

When goods are delivered, there are many possibilities that goods or consignment gets stuck on the port or it may face any other difficulty. But you can trust these experts for their reliable services. 

Ancillary services 

However, during overseas transportation, the responsibility lies with the importer/exporter itself. But these freight forwarders can provide you with various services such as; 

• Bill of Lading
• Export License
• Commercial invoice, etc. 

Conclusion

When there are so many providers out there, to provide you with various assistance in logistics and freight forwarding, you need not worry about customs clearance. These are the professional people working in this direction for so many years to provide cost-effective transport solutions to the businesses. 

Doing good market research before choosing a freight forwarder will ensure timely delivery of the goods and consignment.