The trend of outsourcing logistics services started in the 1970s and 1980s, and since then, various organizations have come to believe that third-party shipping is an efficient, cost-effective service. In short, they are called 3PLs. There are many reliable companies with interesting shipping solutions and the possibility of international plus domestic services at affordable prices. For details on any of these services, click here.
There are many services supported by them including warehousing, transportation, etc. They have been taken into account for complete production performance and are trusted primarily. These logistics companies help businesses create a perfect alliance with their customers and help reduce any possible risks. Companies choose these services after considering various advantages and some of them have been listed in the article.
If you’re considering trying out third-party logistics, know all the positives to get started. They are also preferred by small businesses who trust these providers for efficient shipping. Without any further hassle, let’s get started.
Do you know: By 2020, the 3PL market has generated an economic value of up to US$961 billion. Essentially, they have become an extensive service network of the global supply chain.
What is a third party shipping service?
They take care of the entire logistics of the organization. They are responsible for managing all shipping and logistics. Their services include transportation, fulfillment, storage and others. 3PLS is trusted by many organizations worldwide because they help enhance shipping through their efficient operations.
They are trusted for efficiency and sustainability, and ensure big profits for the business by facing internal challenges faster and with solid inventory management skills.
The industry has faced a lot of competition, for example, between 2006-2017, the Swiss Company, Kuehne + Nagel experienced a severe drop in revenue. In 2021, some of the industry leaders are Kuehne + Nagel, DHL Supply Chain & Global Forwarding, DB Schenker and DSV.
In the current context, companies are looking to increase their access to domestic and international markets, this task is effectively handled by third-party logistics service providers. According to Statista, the size of the global logistics market was worth US$7.5 trillion in 2017, this number will grow significantly to US$13.7 trillion by 2027, thus expanding Its reach is almost everywhere.
Now, let’s first know the advantages of using these services.
Interesting facts: Together, Asia-Pacific accounts for one-third of the world’s 3PLs, making it the largest revenue-generating regional network in the industry.
Benefits of 3PL
Third-party logistics or third-party shipping services are the company’s management source mostly chosen for their organizational skills as well as labor and cost-effective services. Let’s acknowledge their benefits briefly.
- Logistics expertise: Proper management of logistics-related details is imperative and this can be handled properly by a professional. Expertise in third-party shipping services gives a much better understanding of export, customs, transportation, import and export, documentation and many other shipping regulations.
Their support is well optimized and leaves no complaints for shippers or customers, so 3PLs that are well versed in this industry will develop the best, use the best technology and stay up to date with time.
- Flexibility and Innovation: Based on business resources, market challenges, needs and wants, 3PLs can balance. They are experienced in this industry and thus utilize all resources such as transportation, labor or space to fulfill the requirements.
They master and avoid risks, delays and roadblocks with their excellence in the industry. One of the advantages of using them is the versatility that they are immune to navigating any obstacle that might interfere with the urgent task.
- Risk Managers: They are highly skilled to operate in damaging conditions. Well-versed in such situations, they ensure the proper management of the business through the necessary precautions. Due to their vast experience in their industry, they know the math and logistics behind getting a task done on time. An extensive network of resources also assist them to come up with solutions to solve the problem within a certain period of time.
These are some of the well-documented benefits surrounding the benefits of third-party shipping services. They are easily challenged and beat market situations or any potential disruptions in efficiency.
Stop thinking
3PLs have become highly competitive with efficiency and diverse networks to increase supply chain and customer presence in the market. Although this market took a significant leap in 2021, next year will see them grow even stronger. This industry has the ability to take the market to a revenue leak and ensure it is up to any challenge that may come its way.
Categories: Technology
Source: SCHOOL TRANG DAI
