6 Time-Saving Advantages of Third-Party Logistics

From startup to large enterprise, making use of a third-party logistics (3PL) provider is a great way to reduce the manual labor it takes to manage your shipping operation. There are many advantages of third-party logistics, one of which includes saving time in your busy operation. Transportation can be time-consuming if you don't have the right systems in place, and working with an expert can help your logistics grow in sophistication along with scaling your business.

6 Time-Saving Advantages of Third-Party Logistics

Let's take a look at some ways a 3PL partner can save your organization time and boost your productivity.

1. Facilitating growth
   If your operation is growing fast, you need a 3PL partner that will support your complex logistics. Having partners in place that will assist you in organizing your warehouses, finding new resources, and implementing capacity solutions helps you save time on manually expanding.
   
   
2. Carrier selection and capacity
   As there are hundreds of carriers with varieties of capacity limits, networks, and services, determining which one works best for you is simply too time-consuming. With hundreds of potential requests for proposals to prepare and send out, this tedious task can get in the way of putting your attention where it needs to be.
   
   Among the advantages of third-party logistics is an extensive network of qualified and vetted carriers who can provide valuable feedback to you when making the decision to sign. Choosing a vendor from a trusted third-party logistics partner helps you save time on research and vetting, and can prevent service disruptions down the road.
   
   
3. Building strong relationships
   Transportation is built on relationships. Building a network of trusted carriers is a must when you need your product to get from point A to point B, and establishing partnerships with carriers and receivers can sometimes take months or years of consistent business.
   
   By working with a third-party logistics partner, you can circumvent this process by capitalizing on the atmosphere of trust that already exists between your 3PL and their network. You can build up your transportation infrastructure faster and potentially have a wider reach.
   
   
4. Issue management
   Accidents happen, and not all deliveries go as planned. Between trucks breaking down, orders getting rejected, and schedules getting changed due to weather or other unforeseen situations, your operation needs to be prepared to respond to any potential issue with grace and patience to get the job done.
   
   Your third-party logistics partner is in your corner and can help you mitigate these issues. They can help you create an actionable crisis plan and assist you in putting it into action. No more time is wasted scrambling when things go wrong, so you can turn your attention to problem-solving.
   
   
5. Billing and paperwork
   Manually filing paperwork is not only risky in case of data loss but, between processing paperwork, audits, and billings, you can find a lot of your time getting sucked away from more important tasks. A 3PL will have the expertise and a warehouse management system — key advantages of third-party logistics — to automatically create budget reports and work directly with your various shipping service providers to help facilitate payments.
   
   
6. Performance reporting
   Reporting is one of the best tools your shipping service can use to improve your process. However, compiling daily, weekly, monthly, quarterly, and annual data can be a tedious process. Using the right 3PL software can save you time by collecting this data automatically and analyzing it for you. Your 3PL partner should also have the ability to conduct audits and inform you of any KPI opportunities, market trends, and overall performance analysis.

Time-Savvy Solutions From a Trusted 3PL Partner

Materialogic is more than your average third-party logistics partner. We are an extension of your operation, working to optimize your shipping service at every turn. Our team takes the time to regularly check in with your operation to make sure you are meeting your standards and are on track to reach the goals you set with us. Contact our team to learn more about the advantages of third-party logistics and how 3PLs can optimize your operation.