If you’re in distribution, and you’re still handling your own logistics, you might be costing yourself valuable time and money. In many cases, a freight management logistics company like Amstan Logistics can offer significant benefits over your current systems. Hiring a logistics specialist isn’t an expense – it’s a cost-saving measure.
For those who haven’t yet considered partnering with a third-party logistics provider (3PL) for their distribution, here are some major ways it could pay off in both the short- and long term.
When a 3PL is handling cargo for a lot of different companies, that pays off for you in multiple ways. With standard loads, you get the advantage of their economies of scale – they’re bulk buyers, and they pass the savings on to their customers. Where it really pays off, however, is if you’re making a lot of short-notice or under-sized loads. In those cases, your load may be combined with existing shipments and spare you the huge cost of special delivery runs.
Pricing of shipments is complicated, and something smaller distributors simply don’t have the insight to manage. A larger 3PL, however, is very experienced with rate negotiations, as well as having dedicated staff that follow the latest regulations and external factors that affect pricing. This knowledge is given to your firm and it means you pay even less for shipments.
Better freight management logistics firms have specialized computer systems and databases that smaller operations simply don’t have the time and money to install. These systems pull current schedules and rates from dozens to hundreds of shipping options. This makes it much easier to build shipping lines optimized around your needs. Again, your company gets the best in technology.
As a side benefit, you can also leverage the technology to provide better service to your own customers, such as more accurate shipment tracking.
Payments, invoicing, auditing, and other bureaucratic requirements can be a costly and time-consuming drag on most businesses. Why would your own people handle these things when they could be focusing on your core business instead? An efficient 3PL handles the bureaucracy with ease. Your best people can focus on more important work.