Using a Third-Party Logistics Company to Save Money

More GFS News

Companies ranging from startups to thriving, mature businesses that continue to grow can all benefit from working with third-party logistics (3PL) companies for a variety of reasons, and in particular as a way to save money. We are going to touch on a few of the ways 3PL providers help cut costs and also improve efficiency at the same time.

The fact is, over 99% of companies that need 3PL services are not in the shipping or logistics business and are therefore not experts in it, which is totally understandable. Many try to manage operations in-house but hit roadblocks and then begin to look elsewhere. Storing and transporting goods is an art and each hiccup along the way can cost companies a lot of money, but also produce unhappy customers.

Additionally, unless a company’s operation demands it, having a full staff of logistics personnel usually doesn’t make sense because you’re not only paying for the work they do but also for downtime. Hiring a 3PL company may seem like a more expensive option at first, though it’s really not when you break down the numbers.

One of the biggest cost savings is companies not having to invest a considerable amount of money into warehouses, staff and technology to manage them, transportation vehicles, and all of the other things needed to run a successful operation. Why spend the extra money if you can hire experts tomorrow with all of the infrastructure in place?