Logistic outsourcing has become a common trend among businesses these days. Businesses prefer to outsource their logistics and supply chain for cost-cutting and better efficiency.

Maintaining an in-house logistics operation can be challenging as it requires huge investments. It also requires huge operational expenses. 

Therefore, businesses prefer to outsource these operations to third-party logistics. Third-party logistics service providers like Cargaison Express ensure streamlined and optimized supply chain operations. 

In this blog, we shall explore some important benefits of 3PL service providers and how they can contribute to the growth and success of your company. But before that, let us learn a bit more about 3PL service providers. 

What is Third-Party Logistics (3PL)? 

3PL stands for third-party logistics. 3PL service providers are external logistics service providers that manage a company’s supply chain operations on its behalf.

3PL service providers act as a bridge between a company and its customers by ensuring efficient supply chain operations.

These external service providers bring the necessary expertise, tools, and technology that most businesses may not have in-house.

External logistics service providers are responsible for handling warehousing, transportation, inventory management, and order fulfillment. 

3PL logistics service providers like Cargaison Express ensure smooth and efficient supply chain operations. 

What Are The Types Of 3PL Companies? 

Here are the different types of 3PL companies and the services they offer.

Full-Service Provider 

These types of 3PL service providers provide a wide range of services to clients. They handle everything from receiving an order to delivering it to the end customer.

Their services include receiving orders, warehousing, packaging, transportation, delivery, and reverse logistics.

3PL Warehouses 

These types of 3PL companies offer only warehousing-related services to clients. Their primary focus is on the storage and movement of goods within their facilities.

They also focus on providing efficient inventory management to deal with goods shortages or overstocking.

Transportation-Based 3PLs 

These types of firms focus on the transportation and movement of goods from one location to their destination.

They focus on efficient transportation through route optimisation and appropriate carrier selection. It ensures low shipping costs and timely delivery of goods.

Financial and Information-Based 3PLs 

These types of firms deal with the financial aspect and information flow within the supply chain. 

They handle tasks like processing invoices, auditing freight expenses, and employing data analytics. 

Benefits Of Logistics Outsourcing 

Here are a few important benefits of outsourcing logistics and supply chain operations.

Cost Efficiency 

One of the most important benefits of outsourcing logistics services to an external service provider is that it is much more cost-efficient than in-house logistics.

In-house logistics requires huge initial investments such as purchasing vehicles, building offices. It also requires huge operational costs, such as employee training and payroll expenses.

However, companies can avoid all these expenses by outsourcing these services to a professional logistics outsourcing service provider.

Cargaison Express is a reliable third-party logistics service provider that can help businesses reduce their supply chain costs.

Therefore, businesses must consider outsourcing their supply chain operation to an external service provider for cost-saving benefits. 

Flexible and Scalable operations 

Another benefit of outsourcing logistics services to a third-party logistics service provider is that they can help businesses scale up or down their supply chain operations.

One of the biggest problems that businesses with in-house logistics face is their inability to scale supply chain operations.

Those businesses that have in-house supply chain operations have limited resources. Therefore, it becomes difficult to scale up operations when needed. 

As the market situation keeps changing, so does product demand and supply. Therefore, to meet the high demand, businesses must quickly transport and deliver their goods to the end customer.

Third-party logistics service providers like Cargaison Express can help businesses easily scale their supply chain operations. 

Access To The Latest Tools And Technologies 

Another benefit of outsourcing logistics services to an external service provider is that you get access to the latest tools and technologies. 

Professional logistics outsourcing service providers like Cargaison Express have the necessary tools and technologies required for efficient logistics operations.

They also have skilled and experienced professionals who have been working in this industry for several years. You can also leverage their experience for your organisation.

They use advanced technology such as data analytics and live vehicle tracking systems. It is used to track and locate the delivery vehicle to predict the estimated time of delivery. 

Regulatory Compliance 

Another benefit of logistics outsourcing is that you don’t have to worry about frequent regulatory compliance.

The government issues frequent regulatory compliance notifications to carriers, and they have to abide by the law.

However, missing these notifications and failing to stay compliant with government regulations can result in penalties.

However, professional logistics outsourcing service providers are well-versed in current laws and industry regulations. 

They ensure that all supply chain operations remain compliant. It reduces the risk of legal issues. 

Cargaison Express: Reliable 3PL Service Provider 

Logistic outsourcing is one of the most popular business strategies to streamline and optimise supply chain operations.

Today, big businesses prefer to outsource their supply chain operations rather than handling them in-house. 

It reduces the cost of supply chain operations and also provides access to the latest tools and technology used in the logistics industry. 

It also provides flexibility to scale operations and stay compliant with government regulations.

If you are looking for a reliable supply chain management and outsourcing​ firm, choose Cargaison Express. 

We help businesses streamline and optimise their supply chain operations. Get in touch with us to learn more about our services. 

FAQ’s 

1. What is a 3PL service provider?

A 3PL (Third-Party Logistics) provider manages logistics and supply chain operations on behalf of a business. They handle services like warehousing, transportation, inventory, and order fulfillment.

2. Why should I outsource my logistics to a 3PL company?

Outsourcing reduces operational costs and eliminates the need for heavy investment in logistics infrastructure.

3. How do 3PL providers help with regulatory compliance?

3PL providers stay updated with government regulations and ensure all operations follow legal standards. 

4. Can a 3PL provider scale with my business growth?

Yes, 3PL providers offer scalable solutions to meet fluctuating supply chain demands.

They can easily adjust resources based on your business’s size and seasonal needs.

5. What types of 3PL services does Cargaison Express offer?

Cargaison Express offers services such as warehousing, transport, order fulfillment, and compliance.