How do you handle the logistics of your business? Do you run your warehouse in the right way, ship products at the right time, and handle returns without a complaint?
If your supply chain management raises questions in your mind, it is time to think of outsourcing. With a third party logistic company, you can focus on the priority business operations without compromising on the fulfillment of the supply chain logistics.
However, several misconceptions still persist around 3PL services despite its popularity. In this blog, we’ll debunk some common myths about 3PL services, shedding light on the realities and benefits it offers. So, keep reading the blog till the end.
Myth 1: 3PL Services Are Too Expensive
Fact:
3PL services are misrepresented for being too costly, in particular for small budget business owners. But the reality is that the 3PL costs are inclusive of labour, tools, technologies, and other resources used during the entire logistics.
In fact, the costs are lower than the ones you might have to incur independently to scale your operations. Over time, the cost of a third party logistic company and their services also translate into reduced transportation costs, optimised inventory management, and decreased overhead expenses.
Myth 2: 3PL Services Lead to Fluctuating Logistics
Fact:
Another common myth surrounding 3PL companies is the over-reliance on their processes can lead to fluctuating logistics. In reality, effective 3PL partnerships are built on collaboration and transparency.
Modern 3PL providers use advanced tracking systems throughout the logistics, whether it is in a warehouse or inside the movable trucks. They also provide access to businesses to track stock levels, monitor shipments, and find the status of their deliveries.
This transparency ensures that businesses remain in control and make informed decisions based on accurate data from a third party logistic company.
Myth 3: 3PL Providers Only Handle Large Businesses
Fact:
Some believe that 3PL services are beneficial for established businesses due to their large shipments and complex processes. But, the reality is far different as 3PL providers extend customisable services to businesses of all sizes.
Whether a company needs help with warehousing, inventory management, or wants transportation of their products, 3PL providers adapt their services to fit the business and its specific requirements. With no cookie-clutter solutions, many small to medium enterprises across different industries look forward to working with third-party logistics.
Myth 4: 3PL Services Are Only About Transportation
Fact:
While transportation is a prime focus of a third party logistic company, it is not the only service to expect. In fact, a 3PL provider offers a wide range of services, including warehousing, order fulfilment, inventory management, reverse logistics, and more.
When you combine various logistics functions under one roof, businesses can streamline their operations, improve efficiency, and enhance customer satisfaction.
Myth 5: 3PL Providers Are Not Reliable
Fact:
3PL providers unreliability is a key concern and is a consistent root cause of misunderstanding among many business owners. This stems from the fact that subpar providers fail to meet the expectations or lose touch with the tracking software.
In reality, 3PL providers invest heavily in technology, building tech-enabled infrastructure, and training staff to exceed client expectations. Also, they work through a well-prepared plan and contingency plan to handle disruptions and ensure consistent service.
Moreover, a third party logistic company complies with high logistics industry standards, ensuring commitment to quality and reliability.
Myth 6: 3PL Providers Lack Industry-Specific Knowledge
Fact:
Another misconception surfacing on the news is that the 3PL provider lacks specialised knowledge on handling logistics of few specific industries. But rather, it is the only way through which every industry can get help with managing their supply chain operations.
Besides having a deep understanding of the unique challenges and requirements of retail, healthcare, and manufacturing industries, 3PL providers address the specific needs and pain points of each sector. This expertise ensures that businesses receive the highest level of service and support.
Myth 7: 3PL Services Are Only for Long-Term Contracts
Fact:
Some businesses presume a third party logistic company to be a long-term commitment. This leads them to shy away from considering 3PL services. However, the reality is quite different and it is certain that providers offer flexible contract options to accommodate different business needs.
You can consider both the short-term and long-term contracts, depending on the arrangement that best suits their needs. This flexibility is particularly beneficial for businesses experiencing seasonal fluctuations or those new in the growing competitive market. This adaptable approach is beneficial to access the logistics support without having to tie up in a long-term contract.
Myth 8: 3PL Providers Do Not Align with Company Culture
Fact:
One often overlooked misconception regarding 3PL companies is their misalignment with the cultural background of the companies. But that is only half the truth. A reputable 3PL provider understands and integrates with a client’s culture and values.
In fact, their main agenda is to focus on building strong and united relationships with their clients. They invest time in understanding the client’s business goals, culture, and operational processes. This alignment ensures that a third party logistic company becomes an extension of the client’s team, working towards common objectives and maintaining the company’s culture and standards.
Final Words
We hope you found this blog useful. As you see, 3PL providers face a lot of misleading titles and presumptions about their services. There is absolutely no truth in any of the misconceptions which calls in for the need to present the right facts.
Now that you are aware of the hidden facts behind each of the misconceptions, take your time to find the right 3PL provider. With Carrabba’s Group, a third party logistic company, you can enhance your logistics operations, reduce costs, and improve your customer’s satisfaction.
Contact the leading provider today to avail their best 3PL services in and around other suburbs of Melbourne.