Supply chain management outsourcing has become a common trend among businesses, offering 5 key benefits – cost reduction, increased efficiency, scalability, expert insights, and improved focus on core activities. Logistics and supply chains play a pivotal role in the efficient transportation of goods and services to customers.

Logistics and supply chain operations include activities such as procurement, inventory management, transportation, warehousing, and order fulfilment. It also includes demand forecasting and distribution. 

Businesses can outsource these activities to an external service provider that can manage these activities on their behalf. 

These third-party service providers have advanced tools and technologies that are required for efficient logistics operations. 

Along with this, they also have skilled professionals with years of experience in this industry. You can leverage their expertise for the growth and success of your businesses.

In this blog, we shall explore a few important benefits of outsourcing supply chain operations to a 3PL service provider. 

What is A 3PL Service Provider? 

3PL stands for third-party logistic service provider. A 3PL service provider is an external outsourcing service provider that can manage logistics and supply chain operations for your organisation.

These services can include transportation, warehousing, inventory management, order fulfilment, packaging, and freight forwarding.

Cargaison Express is an outsourcing service provider that can help businesses streamline their supply chain operations.

3PL service providers also help businesses reduce costs and improve the efficiency of their logistics and supply chain operations. 

Let us explore a few important advantages of hiring an external service provider such as Cargaison Express. 

But before that, let us discuss a few important functions of a 3PL service provider.

Key Functions of a 3PL Provider 

Transportation & Freight Management 

3PL service provider is responsible for the efficient transportation of goods and materials from the origin point to their destination. They are also responsible for the freight management process.

Warehousing & Storage 

External supply chain management and outsourcing​ service providers are also responsible for warehousing and storage processes for goods and materials. 

Order Fulfillment 

Another key function of a 3PL service provider is picking up the order from the shipper. And then packing it and shipping it to their delivery locations.

Tracking 

3PL service provider is also responsible for order tracking and then informing the customer about delivery time. Today, with the help of technology, live tracking of orders is also possible. 

Distribution 

It involves the distribution of products and materials to the delivery location. The outsourcing service provider is responsible for safely delivering the products to customers.

Reverse Logistics 

An external outsourcing service provider is also responsible for the reverse logistics of products to the shipper. 

Due to various reasons, the customer may want to return the order to the shipper, so the 3PL service provider also offers reverse logistics service. 

5 Benefits Of Logistics Outsourcing 

Here are a few important benefits of outsourcing your logistics and supply chain operations to a 3PL service provider. 

1. Cost benefits 

One of the most important benefits of hiring an external logistics outsourcing provider is that it can significantly save you a lot of money.

Managing an in-house logistics operation takes huge investments. You may need to invest in the infrastructure, such as warehouses and offices. 

You may also need to invest in hiring employees and their training. So, you can avoid these investments by outsourcing logistics and supply chain operations to an external service provider. 

2. Access To Expertise 

Another benefit of hiring a 3PL service provider is that it provides you access to talented professionals. 

3PL service providers have a global pool of talented professionals. When you outsource your supply chain operations to these firms, then these skilled and experienced professionals will work for your organisation.

It not only improves the efficiency of supply chain operations but also helps your business grow.

3. Enhanced Flexibility 

Supply chain outsourcing also provides you with flexibility to scale your supply chain operations. With your in-house logistics, it becomes difficult to scale the logistics operations when the product demand increases.

However, when you outsource these operations to a 3PL service provider, you can easily scale the supply chain operations. The external service providers have the necessary resources to scale operations with the product demand in the market.

4. Regulatory Compliance 

Another benefit of outsourcing your supply chain operations to an external service provider is that they help you with regulatory compliance.

In today’s time, regulatory policies keep changing frequently. So, it becomes difficult to stay compliant with the regulations. 

However, 3PL service providers have experts who keep themselves updated with the government regulations.

5. Focus On Core Competencies 

Another benefit of logistics outsourcing is that it gives you the freedom to use your valuable time somewhere else. 

When you outsource logistics service to an external service provider, then they are responsible for managing smooth logistics operations. 

Therefore, you need not spend your time and energy on managing logistic operations. Instead, you can use your time on other important business operations. 

Cargaison Express: A Logistics Outsourcing Service Provider 

Logistic outsourcing has become a strategic move for businesses to streamline their supply chain operations.

Outsourcing logistics to a 3PL service provider can be significantly advantageous. It can help businesses in cost saving and access to experts. 

It also allows businesses to scale logistics operations and stay compliant with government regulations.

Moreover, you can also save a significant amount of time and energy and use it on other important business functions.

Cargaison Express is one of the most popular supply chain outsourcing firms that helps business streamline their supply chain operations. Get in touch with us to learn more about our logistics outsourcing services. 

FAQs 

1. What is supply chain management outsourcing?  

It means hiring an external company like Cargaison Express to handle logistics tasks such as shipping, warehousing, and order fulfilment for your business.  

2. How does outsourcing logistics save money?  

You avoid costs like warehouse rent, staff salaries, and transportation fleets since the 3PL provider manages everything for you.  

3. What services do 3PL providers offer?  

They handle transportation, warehousing, order fulfilment, tracking, and even returns (reverse logistics).  

4. Why is outsourcing better than in-house logistics?  

3PLs have experts, technology, and global networks. It makes operations faster, cheaper, and more scalable than managing it yourself.  

5. How does outsourcing help my business grow?  

It lets you focus on core tasks (like sales and product development), while the 3PL ensures smooth, efficient deliveries to customers.