The logistics industry is currently experiencing both exciting opportunities and complex challenges. In North America, there is a notable increase in production and shipments, accompanied by a rise in nearshoring, but at the same time, driver numbers are falling. Many companies face worker shortages, while data collection and visibility are increasingly imperative.
Manufacturers looking to streamline their freight operations realize they may need help, which is where third-party logistics providers (3PLs) bring significant value. Companies working independently of 3PLs typically expend more time and money operating their supply chains, while those that partner with a 3PL benefit from improved service, cost savings, and enhanced safety measures.
Improved Service:
3PLs are pivotal in the customer service industry within the logistics sector, offering significant value through their comprehensive range of services. For starters, 3PLs understand the complexities of the manufacturing industry and the involvement of sourcing raw materials from various suppliers and locations. They offer in-depth logistics and transportation knowledge and can provide valuable insights and guidance regarding a manufacturer’s supply chain.
3PLs use a holistic approach to supply chain management that incorporates a company’s business needs and shipping details to develop tailored logistics solutions, recommend routes, and identify cost-saving opportunities. Their service extends to managing logistics operations, allowing companies to focus on their core competencies of product development and manufacturing processes. 3PLs handle all aspects of transportation, including route planning, carrier selection, shipment tracking, and freight auditing.
They maintain a nationwide database of trusted carriers thoroughly vetted for their performance and capabilities and can pair specific freight needs with a suitable carrier. 3PLs also provide the resources, infrastructure, and adaptability required when customer demands fluctuate, unexpected disruptions occur, or when exploring market expansion. This agility ensures manufacturers can maintain their supply chains, even during periods of high demand, without compromising quality and customer satisfaction.
Cost Savings:
By partnering with a 3PL, companies can unlock multiple benefits, including enhanced cost optimization and efficiency. One key advantage lies in the expertise, resources, and extensive network that a 3PL brings to the table. In addition to having established relationships with carriers, 3PLs often have access to more favorable rates for transportation services. Furthermore, they typically offer an established network of strategically located warehouses, distribution centers, and transportation hubs.
These networks are purposefully designed to maximize efficiency, minimize transportation distances, and reduce logistics costs. Through their facilities, 3PLs can provide transportation services to multiple customers, allowing them to take advantage of freight consolidation. Their advanced technology systems and analytics tools also enable manufacturers to achieve additional cost savings and operational efficiency without investing in their own transportation management systems.
One of ProTrans’ greatest strengths as a 3PL is its Solution Design team and dedication to continuous improvement on behalf of its customers. The team regularly analyzes every aspect of a customer’s end-to-end supply chain, integrating their shipping data to optimize routes and uncover cost-saving opportunities. They consistently review a customer’s business goals, transportation routes, and shipping modes to engineer solutions tailored to a company’s logistics needs. ProTrans’ unique consolidation model also allows customers to reduce costs by only paying for the space they use while maximizing trailer or container utilization throughout their network.
Enhanced Safety:
Working with a 3PL provides multiple benefits that make shipping safer, from tracking systems and risk management processes to robust safety programs and compliance expertise. 3PLs provide enhanced safety measures that mitigate supply chain risks for manufacturers by leveraging their industry knowledge, protocols, dedicated teams, technology, and risk management strategies.
They assume responsibility for the freight they manage and utilize specialized software and tools to monitor and track shipments throughout their network. They also hold insurance coverage to protect manufacturers against potential risks and liabilities and ensure carriers assigned to their shipments are likewise insured. These assurances give manufacturers peace of mind that they are protected against loss, damage, theft, and other unforeseen events.
Additionally, customers can have confidence in 3PLs with strict safety certifications and dedicated safety teams. Certifications like CTPAT are strong indicators that 3PLs take safety and border security seriously, requiring extra precautions to ensure that the freight is not touched while in transit or used maliciously in any way. These certifications include privileges that keep freight moving quickly and securely, like reduced wait times at border crossings, less handling, fewer stops, and business resumption priority after a national disaster.
Many 3PLs also have dedicated safety teams responsible for implementing safety measures across their operations. These teams continuously assess and improve safety practices, identify potential hazards, and implement preventative measures to safeguard freight and employees.
Customers can be confident that when they partner with a 3PL like ProTrans, they are getting the help they need. 3PLs provide top-of-the-line logistics services, easing customer supply chain tensions. They look out for their customers’ time and financial interests and provide them with much-needed safety nets. Contact ProTrans today to learn more about the benefits of partnering with a 3PL and get a free analysis of your supply chain needs.
