4 Benefits of Outsourcing Logistics to a 3PL Company
Competitiveness among diverse companies defines the ebb and flow of the marketplace. Every company tries to gain an edge on their competitors to get their product to their customers at the lowest possible price. Companies rarely work entirely independently because outsourcing and strategic partnerships allows them to focus on imperative internal marketing and management operations.
Direct Drive Logistics vigilantly monitors shipments nationwide so our customers know every detail of the shipment, from departure to destination.
Outsourcing is NOT a Four Letter Word
…when implemented intelligently and efficiently. Outsourcing your logistics operations to Direct Drive Logistics puts you in the best position to decrease the costs of shipping and turn your attention to more profitable endeavors.
Weighing the Pros and Cons of Outsourcing Your Logistics
Direct Drive Logistics is an example of how the advantages of outsourcing logistics has real-time results giving business owners more focus and energy to budget back into their company by leaving complex and otherwise time-consuming logistics solutions to our supply chain management experts.
Each decision made by a business can be broken down into a cost/time calculation and one of the most important choices should be weighing the pros and cons of outsourcing third party logistics.
1. More Time, More Profitability
It should come as no surprise that partnering with Direct Drive Logistics means more money and time. Every business is in the success business, but there are some who like to succeed more and they look into logistic advantages and disadvantages of 3PL.
These companies realize keeping logistics in-house runs the risk of making costly mistakes. Not only can additional staff be costly, but general lack of experience will impact the satisfaction of the customer and damage the company’s reputation. The amount of detail and oversight needed to efficiently run even a small-scale operation is significant challenge and expense.
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Retailers or manufactures can reduce the amount of capital expenditures such as transportation vehicles, warehouses and additional staff by giving a logistical management control of their operation.
Additionally, the time a company can save on the logistics side of things translates into more focus on expanding their company into bigger markets regionally and even globally.
2. Smooth Adaptation to an Evolving Market
Despite the most dedicated company’s best efforts, the world of logistics is an ever-changing landscape that requires constant monitoring to save money. The advantage of logistics management is employing experts who have spent their professional lives developing refined logistics management techniques to work out the kinks in your shipping operation and optimize your budget.
In a classic case of If you can’t beat ‘em, join em’, the network support you receive gives your company the foresight to predict trends instead of simply reacting and struggling to cope with the differences.
3PL outsourcing also has a benefit of the latest logistic technology, and, most importantly, customer data that competitors may not have access to. The biggest advantage is a manufacturer does not have to expend and risk capital on this data. 3PL benefits your consumer, which in turn, will mean a more successful business.
3. Flexibility & Potential for Expansion
Third party logistics outsourcing the potential for expansion. By creating a network of accessibility and optimization, Direct Drive Logistics shows how expanding to bigger markets will create a competitive advantage at the lowest amount of risk.
The advantage of third party logistics is added flexibility in your specific market place. Flexibility is invaluable in a changing market because it promotes the longevity of the company and those without it see the disadvantages of logistics. As supply and demand fluctuate, added flexibility to handle changes mean future success for a company.
4. Better Customer Service
With greater experience, a more refined ability to coordinate shipments from departure to destination, and around-the-clock attention on the logistics operation, a 3PL provides superior customer support. Companies with their own internal logistics operations may juggle employees among different tasks and departments and make serving customers directly more challenging.
Outsourcing to a dedicated 3PL provider means improving the customer experience. This is what business is all about, and the only way to gain an edge on your competitors. Third party logistics brokers at Direct Drive, as an independently insured enterprise, are best fit to answer your customer’s questions and direct them towards logistics solutions. The result? Less headache, more time and money for all parties involved.
Potential Disadvantages of Outsourcing to a 3PL
Every coin has two sides. There are disadvantages when considering if outsourcing logistics is right for you.
Up-Front Cost of a 3PL
Again, a cost being one of the most important disadvantages should not come as a huge surprise. The initial cost of outsourcing to a 3PL may seem steep. It boils down to if you want your product to reach your customer you are required to operate some sort of logistical operation.
As a gamble, less risk is on the colt who has won in the past versus the foal in his first race. The same should be considered when weighing the advantages and disadvantages of outsourcing. Trusting the wrong 3PL could cost you. Rest assured, no third party logistics company maximizes your profit potential with as little cost as Direct Drive Logistics.
Lack of Control
Every company starts small and builds upon years of continued success. With that comes a deep rooted sense of pride. While some consider outsourcing to be a dig to their grassroots level beginnings, if your business is growing, your logistics operations may grow beyond your capability to control. It’s not a bad thing! It means you’re doing a lot right.
It’s difficult to release control of your business to another party. However, the benefits oftentimes far outweigh the disadvantages in the long run.
Location of Products
The added benefit of creating a more efficient logistical system for the benefit of your customers means the warehouses and location of your products may not be nearby. If problems arise, it can be a more complicated solution. Direct Drive Logistics provides excellent communication to mitigate any issues.
The Bottom Line
Outsourcing to a 3PL only works against you when your plan is unclear and your third party provider is ineffective. Working with Direct Drive Logistics ensures this will not be the case.
Interested in a 3PL Partnership? Contact Direct Drive Logistics NOW.
Take your company to the next level. Grow beyond a sole proprietorship and become undeniable. Expand your business. Stop worrying about adapting to the market and force others to adapt to you. Outsourcing your logistics operations is one crucial path you need to walk to expand your profitability and become a force in your industry. Contact a Direct Drive Logistics representative today to discuss how we can become a partner for your business.