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5 Great Reasons to Use a 3PL Provider

As global supply chains become more complicated, many companies discover they lack the specialized expertise to manage complex logistics operations in-house.

There are a lot of great reasons to consider using a third party logistics provider. Small organizations often reach a stage where managing growth becomes an obstacle. Large companies can benefit from outsourcing so they are free to focus on core businesses. Here are five fairly common reasons the services of a 3PL can benefit your organization. If any of these are the source of discussion around your operation, Vantec Hitachi Transport System (USA), Inc. would welcome an opportunity to come to your site and provide insight about how a 3PL provider can alleviate some of your growing pains.5 Great Reason to use a 3PL Provider

Maximize Your Opportunities for Growth

A 3PL provider can set up an operation in a region, market, or country where your company does not currently have a physical presence. You can easily locate your products in a new market without having to invest in equipment, personnel, or other company-owned infrastructure.

Create More Predictable Cost Structures

If your business takes seasonal swings, or is sensitive to other market trends, a 3PL provider can scale warehouse space, labor and transportation to provide full support during the busiest times, while cutting back on all those expenses when conditions warrant. A transactional model means your costs are fixed, as you are not paying for excess space, equipment or resources when volumes are down. 

Leverage our Specialized Technology

Many times the Enterprise Resource Planning (ERP) systems, or other technology tools that you use every day, are designed to run your core business, with little consideration to supply chain or logistics challenges. A third party logistics provider has the systems, tools and processes that are specifically designed to maximize the resources of logistics operations. These tools are capable of interfacing with ERP systems and provide real-time updates to inventory availability, order status and financial performance - giving you the power to better plan your manufacturing or distribution operations.

Put More Resources at your Disposal

Third party logistics providers have a wide range of transportation providers at their disposal. This resource pool creates more backhaul opportunities and allows them to take advantage of leveraged buying power and load consolidations. You benefit through the cost savings created by these relationships.

Streamline your Supply Chain

A 3PL provider, with its network of logistics centers in both domestic and global locations, can allow you to store your material nearer to your customer base. You can have a very nimble order fulfillment cycle, resulting in happier customers. This also allows you to have a multi-site distribution network, without the significant capital investment associated with building a network of your own.

Vantec Hitachi Transport System is a global logistics provider that supports supply chain and manufacturing operations worldwide. We offer a wide range of services such as warehousing, distribution, supply chain management, along with air and ocean freight forwarding, domestic transportation, and other value added services. Our goal is to grow our business by focusing on our core competencies, which allows our customers to focus on theirs. We have the smart contract logistics solutions to help you overcome the obstacles that keep your materials from getting to the right place, at the right time, at the best cost.

Download a .pdf Version of our Blog "5 Great Reasons to use a 3PL Provider"

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