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Advantages of Using a Third Party Logistics Provider
(3PL)
1. 3PLs
offer greater booking options and service types. Shippers can take
advantage of increased ocean sailings per week since 3PLs contract
with numerous carriers to provide a variety of service levels,
transit times, etc.
2. 3PLs
generally have greater negotiating leverage with carriers than
individual shippers. This translates into more competitive rates,
greater free time allocations, reduced demurrage and per diem
penalty rates, etc.
3. 3PLs
offer significant, measurable administrative savings. By utilizing
a 3PL, shippers outsource the administrative component of their
logistics program. This saves time and money! Shippers not
utilizing a 3PL must develop these competencies in-house to book
and track containers, which adds costs.
4. By
utilizing a 3PL, the shipper has someone to hold ultimately
accountable for all shipments along various legs of the supply
chain.
5. 3PLs
offer superior information services. By their very nature of being
the coordinator for all supply chain processes and transportation
modes, 3PLs are best positioned to combine and report disparate
data through value added information services.
6. 3PLs
offer greater shipment control through vendor relationship
management and P.O. monitoring at origin. 3PLs proactively contact
and work with overseas suppliers ensuring shipments flow according
to plan. Vendor performance reports are also
available.
7. 3PLs
offer an integrated solution and various value added services
including:
·
Multi-vendor and country consolidation
· Cargo
management services
· Expedited
delivery & team trucking
· Customs
brokerage, bonds and compliance
· Document
collection and forwarding
·
Warehousing and distribution
· Cargo
insurance and claims processing
· Lead
logistics provider and 4PL service
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