Outsourced logistics management isn’t just for large firms—it can also be a valuable strategy for small and medium-sized shippers. Firms with limited internal resources often have the most to gain from leveraging a 3PL’s economies of scale and expert muscle. By plugging into a 3PL provider’s tech, carrier network, and talent pool, shippers of all sizes can boost their capabilities, reduce risks, and gain more flexibility.
The smaller the enterprise, the more is at stake with each shipment.
Recurrent delays from an underperforming carrier hurt customer experiences and can snowball into lost business. Payment auditing and claims management become an uphill battle when logistics departments need to expand their size or expertise. And an inability to quickly respond to changes leaves enterprises at the mercy of a highly volatile market. Outsourced logistics management tackles all these pain points while netting considerable savings for shippers.
5 ways 3PLs boost operational capabilities, increase flexibility, and lower risk.
- Connect with quality carriers. Small and medium-sized shippers often don’t have the time or internal resources to search for quality carriers and pour over rates—let alone vet offerings and negotiate competitive contracts. Tapping into a 3PL provider’s carrier network saves shippers the headache of a long carrier screening process—and ensures they’re working with quality partners. For example, outsourced logistics management from CTSI-Global provides shippers with access to a network of over 14,000 pre-vetted carriers. Plus, an outsourced logistics team performs regular monitoring, so shippers don’t have to worry about the details of managing carrier relationships or holding carriers accountable to performance benchmarks.
- Get better rates. Thanks to their size and market knowledge, 3PL providers often have better leverage to negotiate carrier rates than most shippers. Since they typically work with multiple clients, 3PLs can offer carriers more consistent volumes, making carriers more willing to negotiate lower rates. And, should shippers need to add carriers to their network, an outsourced logistics management team can step in and negotiate on their behalf.
- Leverage top-quality staff and tech. 3PL providers have the technology, manpower, and expertise to manage freight operations more efficiently than most shippers. With smarter processes come improved supply chain visibility, enhanced flexibility, and optimized operational efficiency, resulting in faster fulfillment times, reduced costs, and increased customer satisfaction.
- Keep workforces lean. In addition to seamlessly handling critical tasks, outsourced logistics management allows shippers to maintain leaner workforces. 3PL providers can automate processes like carrier selection, shipment tracking, and invoicing, reducing the need for a large internal team. The ability to quickly expand their staff and capabilities is especially valuable for smaller firms where time is of the essence and assembling an effective logistics team may be too costly and time-consuming.
- Reduce risk. With a team of expert eyes overseeing operations, shippers can be confident that problems will get flagged and solved as soon as possible. Should any issues arise—such as lost or damaged shipments—an outsourced logistics team knows exactly which documentation is required to file a claim and reduces the likelihood of it being denied. Lastly, a 3PL provider can help shippers reduce the likelihood of further hiccups by conducting root-cause analyses for events and other issues and providing expert advice for corrective action.
Outsourcing logistics optimizes your supply chain.
As a global leader with more than six decades in the logistics game, CTSI-Global can handle every aspect of your freight operations. Our end-to-end and customized outsourced logistics management options are designed to help shippers of all sizes upgrade and accelerate their supply chains. Contact us to learn how we help you move your business forward.
