Delivery Notes

Why use a third-party logistics company

Posted by Karen Hales on Apr 28, 2015 1:00:00 PM

Selecting a regional 3PL can reduce costs, increase efficiency & help retain focus on product

Choosing a third-party logistics company (3PL) is advantageous to companies who want to focus on their strengths and product and cut costs in other areas that can be done by providers with the expertise, resources and technology to service warehousing, delivery and other logistical needs.

The right transportation solution provider will serve as a strategic partner, delivering logistics support in a rapidly changing landscape so that your company can focus on its core business functions. The provider also should investigate and analyze your courier processes and functions and recommend data-driven solutions and opportunities for route optimization and consolidation of services.

An example of this type of partnership is QCS’ work with RaceTrac’s “grab-and-go” program. QCS Logistics steps in to provide and manage daily distribution of the product to stores in the Greater New Orleans, Baton Rouge and Lafayette markets, allowing RaceTrac to focus on the overall program, product selection and marketing, and store operations. 

Identifying the right 3PL partner for your business is important, and several factors should be considered:

  • First, evaluate your transportation plan completely and focus on creating an overall competitive advantage for your business.
  • Detail your needs in terms of freight mode, lead time, territory, carriers, frequency and order volume before requesting a proposal from logistics service providers.

It’s best to try to use a single carrier when possible for efficiency and accountability. This makes the logistics service easier to manage by providing one point of contact who is tuned into your business’ changing needs. Smaller, regional 3PLs like QCS are able to quickly accommodate the needs of their clients by adding assets such as additional vehicles and engaging employees well versed in their region.

Do your research: Analyze and make a list of options based on logistics providers available to meet your specific needs. Keep in mind that working with regional companies instead of big name carriers can provide more flexibility in coverage and customization options.

Some of the advantages of using a regional 3PL

  • Route optimization

Regional 3PL’s are familiar with your desired delivery areas, providing increased route optimization and efficiency. QCS Logistics’ drivers have been making more than 750 deliveries per day in the Gulf South region (from Lafayette, La. to Biloxi, Miss.) for 30 years.

  • Eliminate the need and expense for multiple warehouses

Maybe you are able to store and manage all your order fulfillment in house now, but what about in the future? Your 3PL can inventory and verify all deliveries that are received at their warehouse and keep signed delivery receipts on-site, and most, including QCS, can also manage customer fulfillment from order to delivery.

Read more on QCS’s warehousing options here.

  • Give your business greater flexibility

Businesses want a 3PL who can fulfill all of their needs now and down the road. Smaller regional 3PLs have greater flexibility to accommodate businesses, even if it means introducing new assets to their business. And because they are mainly serving customers in your market, they can create greater cost efficiency: Companies like QCS can aggregate all of the LTL (less than truckload) volume they generate to establish very competitive pricing with many of the nation’s top LTL carriers.

  • Engage the experts and eliminate worry

Working with an asset-based logistics company like QCS means that the company is using its own trucks or vans, warehouses, staff, technology, and whatever else is needed to manage the project, improve reliability and, hopefully, eliminate worry. Read more about the other types of 3PLs here.

The same-day delivery service industry is benefiting greatly from the use of mobile technology that provides customers complete visibility from warehouse to door and back. This reassurance, coupled with the training, track record, experience and reputation of a professional logistics provider whose drivers are licensed and insured, can provide you the peace of mind that makes final-mile delivery the least of your worries.

Now is the opportunity to find a true partner in your logistics service provider who will offer customized solutions that will benefit your supply chain needs over the long haul. Regional 3PLs are in an increasingly competitive environment, with more than 15 percent growth in the 3PL market in the past decade, which means more companies are seeking clients to expand their operations and increase growth.

Many companies have already taken advantage of the benefits of working with a 3PL. Outsourcing delivery and warehouse functions has become increasingly common and thus there is no shortage of options when choosing a third party logistics company.

Do your research, get quotes and choose wisely: find a 3PL who can meet your customized needs and your company will reap the benefits.

Call QCS Logistics’ at 504-940-6262 or email Jason for a free quote on services in the Gulf region.

Topics: Third Party Logistics, Warehouse & Fulfillment

Best Practices of Selecting a 3PL Provider