In today’s highly competitive and fast-paced business environment, companies must ensure their products reach their customers quickly, accurately and efficiently. One of the critical factors in achieving this is choosing the right shipping provider. While it may be tempting to ship orders directly from a manufacturer, using a logistics company or 3PL as these companies are commonly known as, has several advantages. Let’s explore reasons why using a 3PL is better than having your orders ship from your manufacturer.
Increased Flexibility:
When using a 3PL, you have more shipping options, as 3PLs provide shipping options of air, sea or land, depending on your specific needs. They can also accommodate changes in your shipping needs, such as rush orders or changes in delivery locations, without impacting your business operations. In contrast, manufacturers typically have a fixed shipping schedule that may be inflexible and not able to meet your needs, especially rush situations.
Cost-Effective:
Using a 3PL can be more cost-effective than shipping directly from a manufacturer. A 3PL can leverage its network and volume discounts to offer lower shipping costs. They also have the expertise to negotiate best carrier rates, optimize shipping options, reduce transit times and minimize the risk of damage or lost goods. In contrast, shipping directly from a manufacturer may be more expensive, as they may not have the expertise or resources to optimize your shipping costs.
Increased Visibility and Control:
Using a 3PL provides more visibility and control over your shipments. They use advanced tracking systems to allow you to monitor your inventory at the warehouse and shipments when leave the warehouse, including tracking information. Additionally, 3PLs can provide detailed reports and analytics, allowing you to identify any potential inefficiencies in your processes. In contrast, shipping directly from a manufacturer may not offer the same level of visibility, control or data, leaving you in the dark about the status of your products.
Reduced Risk:
A 3PL can help reduce the risk of shipping-related issues, such as lost or damaged goods. They have the experience and expertise to handle any issues during the shipping process, reducing the risk of delays or costly mistakes. Additionally, 3PLs typically have insurance policies in place to provide additional protection in case of loss or damage. In contrast, shipping directly from a manufacturer may not offer the same level of protection, leaving you vulnerable to potential risks.
Gives Leaders Time:
Using a 3PL takes time and pressure off you, allowing you, and your leaders, to focus on what only you, and they, can do to build your company. Many manufacturing companies rely on the client to make shipping decisions, including but not limited to method, speed and packaging. A 3PL will handle these decisions and provide you with more time to work on issues outside of logistics. Is your core competency really shipping a box?
Bottomline:
In conclusion, while it may be tempting to have your product shipped directly from a manufacturer, using a 3PL has several advantages: increased flexibility, cost-effectiveness, visibility, control and reduced risk. By leveraging the expertise and resources of 3PL, you can optimize your shipping processes, reduce costs, ensure your products reach your customers quickly and efficiently AND have more time to grow your business.