The trend is growing, strong evidence and case histories across many industries show the benefits to a business of handing over its logistics needs to a 3PL company are becoming increasingly important in today’s economic climate and offers commercial gains on many levels. Achieving and , along with Warehouse costs, managing and rising carriage costs are just some of the headaches that can tie up a businesses’ resource and hinder effective market penetration.
From a development viewpoint, outsourcing their logistics requirements frees client companies from many supply chain management issues and allows them freedom to then concentrate on what they do best, putting management resource into growing the business, strengthening their brand and service profile.
From a costs point of view there are real savings to be had, companies that are joining the trend for outsourced logistics are gaining from buying into the that 3PL operators can offer, the overheads for storage space diminish relative to the facility size, so a 3PL company like can pass these economies of scale on as significantly reduced pallet or block / rack storage fees, compared to what the client would be paying themselves.
By outsourcing logistics the client is releasing many fixed costs that are then borne by the 3PL provider. Conversely the client will stop paying for underused facilites and has a variable rate according to how active their business is at any time.
Operationally 3PL logistics can make a real positive difference to the service the clients’ customer receives, outsourcing all of the order handling, collation, packaging and despatch means that product is in the hands of a company dedicated to just these activities, for a 3PL company like Au Logistics operating in this area, the emphasis is on a complete ‘pick-pack-despatch’ service, ensuring clients keep their promise to customers and deliver professionaly collated, promptly delivered goods to their destinations. By using integrated online stock reporting effectively the client is running their own ‘host’ or ‘partner’ facility, with direct control over their stock movements and levels at all times, the volumes despatched by the logistics partner means the client also wins through reduced carrige rates and allows them to effectively meet market demand and plan their transportation more efficiently.
Find out more about just what is available in outsourced logistics today to help your business grow. Visit or view our listing on HotFrogUK