Sometimes, all you need is a little help. That’s what a third-party logistics provider (3PL) is for. When a customer is looking to optimize their supply chain, save time, cut spending, and increase their market opportunities to expand, it’s time to call in the 3PLs. As a boutique-style freight forwarder, we’re happy to partner with our customers as a 3PL they can trust. We’re developing strategies, creating solutions, and working with our customers to optimize their unique supply chains.
In the past, we talked about tips for partnering with a 3PL. Today, we’re going to address some of the most common misunderstandings and myths about third-party logistics providers. Let’s set the record straight!
Myth 1: 3PLs are Expensive.
Utilizing a 3PL isn’t as expensive as many organizations think. Many decision-makers focus on the price tag of hiring extra assistance without considering the benefits of the services they’re receiving, the ability to negotiate, and the work that is being taken off of their plate. Organizations save money by turning over in-house work and maintenance to a 3PL. Third-party logistics providers like TOC have the ability to find the best rates and know all the tricks of the trade. In the long run, 3PLs can actually save an organization a lot of money by negotiating with carriers, consolidating cargo, and a lot more.
Fact: 3PLs can save organizations money through negotiations, existing relationships, optimizations, and more.
Myth 2: When an Organization Works with a 3PL, They Lose Control
3PLs approach a supply chain based on the goals that their partner organizations want to focus on. Instead of swooping in and changing everything, 3PLs cooperate and collaborate with organizations to identify areas of the largest concern and develop solutions that will work in the longrun. Plus, TOC provides our customers with access to metrics and a dedicated team, so there’s never any question about what our team is focusing on or how effective a tactic is. In short, 3PLs collaborate with the organizations they serve to develop solutions that suit that company.
Fact: 3PLs collaborate and work as partners with the organizations they serve.
Myth 3: Small Companies Don’t Need the Help
Anyone who thinks this doesn’t know the realm of logistics. Supply chains can get messy quickly, regardless of how big an organization may be. We know if there’s one thing small businesses need more of, it’s time, and logistics is great at sucking that up. From planning to negotiations, coordination, and adjusting on the fly when unexpected conditions arise, managing a supply chain can eat up a lot of hours in the day. That’s where a 3PL comes in. They’ll help manage these items, all while working alongside a smaller organization to ensure overall goals are being met. Supply chain management isn’t easy. Let a 3PL carry that burden.
Fact: Small organizations can benefit from time and cost savings provided by a 3PL.
Myth 4: 3PLs Hurt Customers
What do customers want? Consistent, fast, and quality products. They don’t know what’s going on behind the scenes, and they don’t want to. A quality 3PL can help ensure that customers rarely feel the impacts of supply chain delays. This can be incredibly useful in industries like automotive that suffer heavy penalties for delayed supply chains.
Fact: 3PLs can help develop techniques to mitigate supply chain issues and prevent customers from feeling the crunch.
Myth 5: A 3PL Won’t Understand My Organization
Don’t let this myth be what stops your organization from getting the help it needs. 3PLs are like any quality business partner—they want to do right by your organization. A quality 3PL like TOC will sit down with your organization to define goals, analyze existing data, identify areas of opportunity, and create collaborative solutions that fit the way your organization operates. 3PLs that mirror your organization’s business goals and beliefs will be a natural fit.
Fact: A quality 3PL partner will get to know its partner organizations inside and out and learn how to focus on the areas that truly support that organization’s success.
Starting on the journey to find a 3PL isn’t as scary as it seems. In fact, we happen to know a great place to start. Looking for a 3PL to take your company and supply chain to the next level? Contact us today.