Advantages of 3PL?
Cost and time savings for our Customers.
As logistics Professional we possess better know how and a greater expertise as compared to manufacturing business houses.
Our equipment and the IT systems are constantly updated and adapted to new requirement of our customers, so that they are able to meet the requirements of their suppliers and other partners in the value chain.
Manufacturing or Selling companies often do not have the time, resources or expertise to adapt their equipment and systems as quickly as necessary.
Low capital commitment
As most or all operative functions are outsourced to a 3PL provider there is no need for the client to hold own warehouses or transport assets.
This is very beneficial if a company has high deviations in warehouse capacity utilization, because a bad capacity utilization ratio at equal fix cost (for warehouse) will have a negative impact in the company’s financial statements.
Ability of client to focus on core business
The outsourcing of logistics departments permits the company to focus even more on their real core business.
Often only the core competency is really adding value to your product. The whole idea and concept behind 3PL is to have the Right Entity on the Right Job, to reduce the business risk and enable higher profitability.