When a company first starts considering the idea of hiring third-party logistics provider transport companies, they almost always wonder “Why should I hire someone to do something we’ve been doing ourselves for years?”
Well, the simple answer is that such logistics companies are specialists – unlike their clients. A furniture company’s core competency, and the focus of most of their efforts is in making furniture. They are very unlikely to have people within the company who also know the detailed specifics of the shipping industry, along with the tools and technology to make best use of resources.
However, logistics companies do. They specialize in shipping and pass the benefits of that specialization onto their customers.
1 – Reducing Bills of Lading (BOLs)
Every individual BOL that a company generates adds to the overall costs of their shipping operation. The paperwork alone adds extra costs! Logistics companies know how to combine multiple shipments onto a single BOL to cut time and costs.
2 – Leveraging multi-modal shipping
A good logistics company is going to have contacts and options across all forms of transportation, including over the road, rail, sea, and possibly even air. This allows them to leverage the entire global transportation system, finding the best possible combinations of routes to optimize for costs, time, or any other factor their client requires.
3 – Bill auditing
Does your financial department have the time and resources to audit every line item in every bill you get from your shipping companies? Probably not. But a logistics company does! They will go over invoices line-by-line, looking at every added cost and charge, to ensure you’re never overpaying or being charged inappropriate fees.
4 – Making better use of backhauls
Once a truck has reached its destination and unloaded, the backhaul is the route back to their point of origin. All too often, this is done without cargo – incurring significant on-road expenses but without any benefit! A much smarter approach is to work with shipping companies to find jobs to do on that backhaul, cutting costs or even turning extra profit.
Optimize Your Logistics with Amstan
For decades, Amstan Logistics has specialized in shipping, transportation, and logistics. Our expertise can be your ticket to lowered costs, tightly-optimized systems, and better overall service for your own customers. Contact us today to consult on your transportation needs.