The Benefits and Shortcomings of Using 3PL in Sydney

Third party logistics (3PL) companies offer management services when shipping goods. Big companies have trucks to distribute products, thus they don’t require 3PL services as they manage their logistics. However, most firms do not have such resources to fulfill supply chain needs.

As your company grows, it may no longer find it cost effective keeping staff to manage most shipping needs. In such situations, 3PL service providers in Sydney come in handy as the best solution to fulfill most functions.

Good logistics firms integrate your inventory system, thereby streamlining all shipping operations. Rather than manning phones to call brokers and negotiate good rates, the 3PL will automatically make great rates and print all the shipping labels. Hence, you will not require hiring staff to fulfill such functions.

For instance, a manufacturer will be able to get better rates from a 3PL firm and get access to the software that manages wholesale orders and online shipments. This improves the efficiency of order management.

A key advantage of 3PL is their attractive freight rates. You can enjoy discounts depending on the volume of the goods being shipped. Larger volumes of goods often attract more discounts.

This is because 3PLs are able to pool together volumes of shipments and resources from multiple clients. Hence, the overall buying power is increased once many companies are involved.

If you go it alone, you will face financial challenges for shipping costs can add up really quickly. Shipping costs directly affect the cost of your goods to the end customer. Hence, it is crucial to minimize shipping costs by utilizing the services of a 3PL.

Shipping firms have strengths and an equal share of weaknesses. For instance, some will manage and integrate all functions for you, while others allow manual control.

Some trucking firms excel in some regions while others are ideal for long trips and some better for shorter trips. Every company has its best priced routes while other routes attract outrageous rates. Hence, it is advisable to utilize all the benefits of a 3PL.

If you need online freights, then go for a firm that offers best online quotes. If you are after vacation packages, go for the most reliable 3PL in such services. Hence, you can always get good rates with 3PLs rather than being stuck with single trucking companies.

However, some carries have their weaknesses. For instance, you might be stuck with a carrier you dislike. Hence, be careful when shopping for 3PL providers.

Ensure you go for a 3PL who offers professional customer services and allows for damage claims and returns. When searching for 3PL companies, come up with a list containing the attributes you want of a 3PL and your needs. This will assist you when short listing potential 3PLs.

A shortcoming in using a carrier directly is that low volume goods attract higher shipping costs. You will also lose a lot of time. It would be ideal to rely on local companies to ship goods locally.

For national and international shipping, then you would need a larger carrier. Generally, you will hardly find a freight company that can fulfill all your needs. Hence, avoid relying on a single carrier.

It’s often misunderstood that dealing with a carrier directly will attract better pricing and cut the costs of a middle man. The main problem with direct carriers is that shipping small volumes of goods tends to be costly. You are merely utilizing your volume rather than combined volumes of many customers in the case of 3PLs.

If you go for the best 3PL, then it will assist you in managing your time, making shipping easier and hassle free, giving you a more effective means of managing all the costs, and allowing for more flexibility to control shipping. Partnering with a 3PL company is great especially when you don’t have enough funds to rent or buy your own trucks to distribute your products. Hence, 3PL save time and money. Go for the 3PL service provider who can meet all your needs.