If you are looking for a way to reduce rising shipping costs then you must consider outsourcing to a third-party logistics provider, or a 3PL. Supply chain management costs are rising year after year and can be complicated for companies to manage it all alone. When you partner with a 3PL, you will see significant long-term cost savings because of the time and effort you also save.
Here are some of the biggest ways that a 3PL expert can help cost reductions:
1. Transportation Pricing Expertise
A 3PL will guide you into using the best mode of transportation. A chosen mode of transportation will be determined by the type of products you are shipping, and the distance needed to travel. Paying additional fees can be avoided when you know which type of freight shipping would work best. The evaluation of your business needs can help a 3PL develop a custom approach for your company. This could also mean considering the consolidation of goods. You can allow 3PLs to coordinate to have your loads combined with other clients loads to fill up a full container. You can reduce rising shipping costs by having to only pay for your portion of the space taken up.
2. Cultivated Relationships
A major advantage is that 3PLs have access to a vast network of carriers. Experienced 3PL providers usually ship products for multiple companies, so they obtain the volume that can reduce rising shipping costs. You will have the required equipment without having to deal with any other parties. These organizations have cultivated partnerships with reliable carriers and brokers. You will get to keep lower rates because of the negotiating done by a 3PL partner. Prices in the industry can often fluctuate because of certain uncontrollable factors. However, a 3PL partner can leverage their long, good standing to keep shipping rates as low as possible.
3. Fulfillment Operations
Another way you can reduce shipping costs is through a 3PL that has product packaging experience. Inventory optimization is a necessary feature of shipping that can be taken care of by a 3PL. They have flexible fulfillment centers across various states, which can bring overall operation costs lower. You can ship and deliver faster and through these accessible facilities and knowledgeable administrators. In addition, 3PLs have the ability to automate processes through updated technology so that you are not risking any errors. These methods can track your shipments in real-time and determine inventory loss when required.
It would be a huge benefit to collaborate with a 3PL to reduce your shipping costs while remaining competitive in the industry. A reliable 3PL will find the best combination of high customer service and low costs. With their helpful strategies, you can also minimize surprise add-on fees and time-wasting steps.
If you need a 3PL service to reduce rising shipping costs, then you should check out HTL Freight. We have the experience and expertise required to make your shipping operations run smoothly. To find out more, you can contact us. Additionally, if you want to get started today, you can click here and request a freight quote.