According to legislation passed in 2008, a 3PL is legally defined as being "a person who solely receives, holds, or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product." Essentially, it is this very definition that makes 3PLs similar. However, it is also at this very definition, where the similarities end. Although all third party logistics providers offer supply chain solutions for their clients, it is the way that they go about achieving these solutions, which makes them all unique. In addition to being unique as it relates to approach, there is undoubtedly a disparity in the quality of 3PL companies.
One of the deciding factors that separate an excellent 3PL from a bad one is how they handle transportation. Here are the top seven reasons why you should outsource transportation.
- Cost and Time Efficiency: Although cost should never be the deciding factor when selecting a 3PL, outsourcing transportation to a 3PL, in general, will save you both time and money. Essentially, the expertise that a 3PL has in regards to their transportation management software, carrier network, and reporting capabilities saves both time and money for the shipper. For the last 29 years, PGS 360 has been providing affordable end-to-end supply chain solutions to its numerous clients, all within an exceptional timeframe.
- Industry Leverage: As a bonus about a 3PLs ability to demonstrate cost efficiency, 3PLs can use their industry associations and shipment sizes to attain lower prices. Furthermore, they can use that same leverage to negotiate lower fuel surcharges. Mostly, 3PLs have a considerable amount of carriers in their fleet network, so these carriers all bid on freight, which lowers the price significantly. On the bottom of the transportation page of PGS 360's website, information regarding the fuel surcharge can be found at all times. The dates during which the surcharge will take place are displayed, in addition to the cost of diesel fuel, LTL surcharge percentages, and TL surcharge rates. The benefit of this visibility is that clients have a constant perception of the industry's economics, which builds trust between PGS 360 and its clients.
- Perpetual Optimization: In continuing the trend of monetary and temporal savings, it's worth noting that a capable 3PL provider will always search for ways to save money and add value to your logistics operations. In fact, at PGS 360, there's a team of staffed industrial engineers with expertise in time studies, production planning, and customized reporting. A capable 3PL will ensure that transportation is never negatively impacted by the ever-evolving supply chain environment.
- Risk Responsibility: Outsourcing transportation to a 3PL also transfers the risks of transporting your products to the logistics provider. As a result, this protects your organization from penalties and fines. In the unfortunate event that a shipment is lost, stolen, or damaged, this responsibility belongs to your 3PL provider. Nevertheless, working with a third-party logistics provider decreases the probability of this occurrence.
- Warehouse Management Systems: In an age when technology is consistently progressing, it is of paramount importance that a 3PL is fitted with an up to date WMS. For those who don't know, "WMS" stands for a warehouse management system, which is what makes effective warehousing possible. A large part of PGS 360's success over the years can undoubtedly be attributed to its proprietary warehouse management system. Tailor-made to seamlessly adapt to frequent fluctuations in the supply chain, PGS 360's proprietary WMS is designed to accommodate not only your company's growth but also its own.
- Operational Influence: By merely partnering with a third-party logistics provider, you will see your operational influence increase. Mostly, outsourcing goes both ways, and a reputable 3PL will keep you updated on ongoing operations at all times. This includes collaboration and consistent reporting, which provides both transparency and real-time metrics. PGS 360's transportation page also contains two portals where you can place a pickup and track your shipment at your convenience.
- Transportation Management Systems: In addition to having a capable WMS, a sufficient TMS is also imperative to running an efficient 3pl company. A "TMS," or transportation management system, relates specifically to the physical transportation of your products. 3PL providers, depending on the scale of their distribution, employ numerous methods in the shipment of your goods. In PGS360's case, this includes LTL, TL, intermodal, air, LCL, and CL transportation. An advantage that PGS 360 holds over its competitors is the fact that the company owns many of its trucks. This means that we can transport client products from their warehouses to their destinations, all through the use of our specific TMS. Eliminating additional third party cuts costs and increases overall efficiency.
Overall, the benefits of outsourcing transportation cannot be understated. Quality third-party logistics providers such as PGS360 apply their considerable industry knowledge to add value to any supply chain. Products, business, and customers are what matters the most, and a good 3PL allows you to focus on that. If you're ready to reap the benefits of outsourced logistics, PGS360 is the 3PL for you.