The perfect business partnership can prove to be beneficial for both parties and lead to greater profits all around. Outsourcing logistics services can help companies focus better on other aspects of the business such as improving customer service or looking at expansion.
But, to date, many people are skeptical of whether outsourcing is good for the company. In the following post, learn about the top 10 amazing advantages of outsourcing logistics services for a business.
Logistics Service Helps to Reduce Overall Cost
In the 2023 State Of Logistics Outsourcing Report, it was stated around 99% of 3PL (Third Party Logistics) users agreed that their third-party relationships were successful. And 69% of companies have stated that their usage of 3PLs has helped in reducing their overall cost of logistics.
Logistics Service Helps to Prevent Distribution Infrastructure Investments
You do not have to invest any money in systems and buildings since 3PLs have already made their investment in them. The costs get divided among your clients, making it an advantageous prospect for you. Moreover, a 3PL service will put money into the infrastructure as a long-term alliance agreement.
Outsourcing Logistics Service Prevents System Investments
Similarly, most 3PL services have advanced transportation and warehouse management, which help you avoid investing your money in programming, software purchases and maintenance. But this facility is not free of cost; 3PLs distribute these costs among all customers so it is shared among many.
Avoid Making Maintenance and Fleet Investments with Logistics Service
There are options like contract carriage offered by logistics services, which gives you delivery fleets without the burden. Here, there is no need to purchase any trucks, maintain the equipment, hire or retain drivers, or manage all safety protocols and various liability issues.
Buying Leverage Freight
By providing discounts to carriers, 3PLs are always able to achieve a low operating cost per load by leveraging the aggregate freight. This logistics service helps in saving some money for your business which can then be allocated for other purposes.
Sharing of Freight Costs
By matching the freight with the other transporters who are also going to the same location, 3PLs load the items into full truckloads so that they can save 25% more than any other LTL shipments.
Transformation of Fixed Cost to Variable Cost
It becomes tough to match the space inside the warehouse and the number of labourers with the volume of work. That is why 3PLs usually make spaces and appoint labourers based on their current needs. This way, they can take the logistics costs parallel to that of the revenue stream.
Logistics Services Offer Quick Accessibility in the Market
Uplifting and building a new distribution chain in the market is quite difficult, and it takes quite a bit of time, which most businesses cannot afford. On the other hand, a perfect logistics service already has inventory, interfaces with the system and helps you to start shipping within 30-60 days.
Increase in Capacity
A low number of trucks with a smaller number of drivers is quite frightening and threatening to the ability of the shippers to source freight capacity. However, 3PLs and brokers can offer steady and predictable freight in huge volumes every time to the carrier partners. This makes them preferable logistics partners.
Logistics Service Helps in the Improvement in Customer Satisfaction
It becomes challenging to provide the best experience possible to the customers every time and in every situation. But customer satisfaction is the most vital thing behind building the image of any brand in the market.
Logistics service outsourcing can provide efficiency while delivering goods. Because it can provide fast, on-time, smooth and top-notch service for maintaining customer satisfaction, 3PLs always stay in a better position to fulfil any demand at any time. Almost 71% of shippers reported that a 3PL has helped them to improve their service.
The main thing in the logistics market now is delivering any item on time. This change has helped the logistics operations run much smoother and more efficiently. That is why outsourcing logistics services has become a feasible option for many. It is a low-costing and risk-free option that also gives the best customer satisfaction. Porter is one of India’s biggest intra-city logistics service companies. With their commitment to providing unparalleled support to businesses anytime and anywhere, Porter should be your go-to logistics service for any and all transportation needs. Visit the website to learn how your business can benefit from Porter’s special offering, Porter for Enterprise.