Third-Party Logistics(3PL): Understand Its Benefits to Your Business
For most companies, logistics is not only an operational necessity but also an essential part of running a good business. It helps to maintain inventory control, keep shipping costs down, ensure quality standards are met, maintain smooth cash flow and avoid other costly issues which could potentially arise if third party logistics services are not present. This article will focus exclusively on third-party logistics, since its importance cannot be overemphasized to businesses. Welcome to Logistics Monday.
3PL (third-party logistics) deals with the different stages of freight forwarding which include picking up goods from various sources and delivering them to different destinations at a requested time. Although 3PL is commonly used as a service, it is also an entire business model employed by some companies or entire business units.
According to Mordor intelligence[i], Third-Party Logistics (3PL) market in Nigeria is expected to grow over 8% during the forecast period of 2021-2025.
Benefits Of 3PL To Your Business
- Saves time
Think of all the time you spend managing your supply chain. Now imagine a trusted partner coming in and shouldering that entire workload. That’s a 3PL company! They free up your time so you can focus on your core business
- Maximize Efficiency
You can rely on a 3PL to make your supply chain efficient by using the latest technologies and techniques. The company’s dedicated logistics specialists continuously update and implement best practices within its supply chain.
- Reduces Cost
3PL companies help businesses manage their fixed costs. This includes everything from the extra space in a warehouse to the labour and transport needed to move your products around.
- Reduces Risk
Shipping delays can result in supply chain hiccups, but with an insurance policy in place, your 3PL provider is prepared for any hiccups that may occur.
TGL is a logistics company that offers high quality and affordable services to companies across the globe. As a logistics company, our value lies in our flexibility to provide clients with cost-effective solutions to meet their specific needs. At TGL, we recognize that each client has different needs and so our experts are always standing by to help you every step of the way. We handle our client’s freight with total transparency. By offering value added services at affordable prices, we help them to reduce their costs and improve their profit margins.
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