Logistics and Transportation- The Benefits of 3PLs over Traditional Carriers in Sydney
The freight shipping industry has witnessed drastic changes during the last decade. Traditional carriers were dominating the logistics and transportation market with their many trucks, reputable brand names, and ability to offer any shipping needs.
Just like in the telecommunication market where smaller firms are now part of the telecom business, the same scenario applies in the shipment industry. Smaller carriers are now enjoying their space in the market. Smaller carriers started developing their place in the market by specializing mainly in serving local areas. Although the industry never mandated customers on particular carriers, the larger ones always outshined smaller ones in heavy shipping due to their notoriety and size.
Looking for 3PL Services in Sydney
Today, another shipping entity has emerged and earned a good market position. The 3rd party logistics (3PL) service providers are new entrants that have transformed how freight business is done.
They came into the market with focus on both small and large freight needs and the supply chain in its entirety. 3PLs developed an idea of targeting small parcel companies, larger traditional carriers, freight forwarding companies, and regional carriers to offer full service to customers. Their idea worked and it is now a multi-billion dollar industry.
Here are the key advantages of using 3PLs over traditional carriers:
Flexibility
Being able to choose a 3PL provider from many carriers will benefit you in different ways. For instance, some traditional carriers lack solid distribution processes to some destinations. Hence, having the ability to select from multiple 3PLs makes it possible for customers to plan strategically. This enhances the entire supply chain. Traditional ones are predictable for all they do is just short haul or long haul shipping.
Improved Time for Transit
With 3PLs, transit times are enhanced. This means faster delivery of goods from production to the market. Customers also enjoy the benefit of keeping fewer inventories and this enhances efficiency. The transit times of traditional ones is slower in certain areas and you can do very little to improve it.
Full Service
The business idea of single sourcing improves efficiency. Innovative technologies, shortened lead times, and more resources are some of the key reasons that have made shippers to turn to 3PLs. With 3PLs, you can simply use online sites, get competitive rates, and enjoy the freedom of tracking and tracing your shipments from just anywhere. This is not possible with traditional freight carriers.
Versatility
3PLs make it possible for small and medium sized firms to align available resources with their business objectives. Smaller firms that use 3PLs can therefore appear bigger in a market. On the contrary, traditional ones align themselves to big companies such that smaller companies working with them will not be noticed.
Total Management of the Supply Chain
Dealing with 3PLs enables a company to control the costs and enhance efficiency in an entire supply chain. Traditional freight service providers do not focus on the supply chain of their customers.
Convenience
A key benefit of 3PLs is that they enable you to get multiple services from a single 3PL. This is far better than dealing with multiple traditional companies for one service. Multiple companies may also create a lot of confusion especially in accounting departments.
Partners
Finding a good 3PL in Sydney can lead to great business partnership. A professional 3PL always keeps the interest of its customers at heart throughout. Traditional companies, on the contrary, tend to be biased such that they only assist you only when doing some business.
With these benefits in mind, it is clear that 3PLs offer better services to customers throughout the supply chain than traditional shipping and logistics companies.