Is 2016 the year you outsource your logistics?

Tom Sellin

By Tom Sellin Director of Business Development at King Solutions

With the end of one year and beginning of another, we often hear “out with the old and in with the new.” And, that saying doesn’t just apply to individuals, it applies to businesses, as well.

The New Year is a time for change, growth and new opportunities for businesses to try something they’ve never done before and see if it will better their business or their relationships with their customers. One of the opportunities for shippers is to entrust their logistics to a high quality third-party logistics provider (3PL).

But, like tasting an exotic food for the very first time, some shippers aren’t quite sure exactly what the outcome of outsourcing their logistics will be. And, they don’t realize the benefits that could lay ahead.

Some of those benefits could include:

Reduced transportation costs
You may have already looked into reducing your transportation costs and come up short. Generally this can be due to a lack of volume or a lack of carrier diversity. It can also be very time consuming for staff members to measure the pros and cons of using multiple transportation resources. Many companies use 3PL resources to help to reduce the labor costs of managing your own shipments and maintaining multiple carrier agreements.

A 3PL provider may have a much broader network of carriers and providers, opening up numerous co loading potentials. Applying supply chain intelligence to use the best suited resource for every shipment, and advanced shipment metrics can be leveraged to reduce your transportation spend and improve service for your customers.

Third party advantages
Reduce labor hours by using a 3PL. Your team will spend less time concerned about carrier agreements, DOT safety ratings, and insurance certificates when working with a quality 3PL. They can manage every element of freight claims and work to reduce them. The availability of a broader selection of shipping options will provide more flexibility and cost control.

Working with A 3PL not only reduces transportation costs, focus can be placed on controlling costs. Be sure to work with a provider who can provide in-depth transportation performance metrics. This is critical to measure and understand the efficiency of your program.

A commitment to continuous improvement
We know that the New Year can spark the need for change. Because even the best shipping companies make commitments for continuous improvement, so they can provide better service and experiences for their customers.

At King Solutions, we’re always striving to improve our own processes so we can better serve our partners. That’s our commitment. So, if 2016 is the right time for your company to outsource your logistics, let us know. We’d love to talk to you and see how we can partner with your team for the long haul.

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