A third-party logistics company can be of great benefit to your business. Considering all the benefits of proper supply chain and inventory management, hiring a commercial logistics company is worth the investment.
This piece will highlight some great benefits of hiring a logistics company, but first, it’s important to know exactly what a commercial logistics company is.
What Is a Third-Party Logistics Company?
A third-party logistics or commercial company is a firm whose main role is to carry out chain supply management on behalf of another firm. Commercial logistics companies adopt a B2B business model and can also render a few extra services. A good commercial company should be able to provide transportation and warehouse services as well as scale integrated operations as per the client’s requirements. In doing so, the logistics company saves the client money in terms of operation costs, enhances the efficiency of operations and boosts overall productivity.
Benefits of Hiring a Third-Party Logistics Company
A commercial logistics company is overwhelmingly beneficial to many businesses and institutions alike. Some benefits of commercial logistics companies include.
1. Proficiency in Supply Chain Management
Commercial logistics companies bring the industry best practices to the table. These firms have a huge cache of industry knowledge and experience that is extremely advantageous to any company. They also have solid connections with other firms which could prove beneficial for your business. Some commercial logistics companies have even incorporated the latest software to streamline their operations, for your added benefit.
2. Saves Time and Money
In any business, time and money go hand in hand. When you opt for a commercial logistics company for your supply chain management, you free up a lot of time to handle other more crucial business matters. Outsourcing your logistics operations to a commercial logistics company, means you don’t have to spend valuable time tracking inventory or monitoring the movement of goods to and from your firm. You could instead utilize this time for other crucial business aspects like marketing or human resource management.
Commercial trucking companies also saves you money. You won’t have to expend capital on building or renting a warehouse, establishing and maintaining transportation operations, and even employing and paying workers in a logistics department. What’s more, you won’t have to incur heavy losses when a costly mistake occurs since liabilities will be settled by the commercial logistics company to some extent.
3. Strengthens Your Resource Network
You could leverage the huge resource networks established by third-party logistics to your company’s advantage. You can also borrow a leaf from these commercial logistics companies to enhance and optimize processes within your company for greater efficiency, cost reduction and improved productivity. You’ll also get to make use of resources and technologies that aren’t available in your in-house supply setup. Some commercial logistic companies may offer discounts on certain volumes as a client incentive, which may save your company a great deal of cash.
4. Services are Versatile, Scalable and Flexible
From food logistics to heavy haul transportation, a good commercial logistics company will have you covered. The commercial logistics companies are also able to scale their service in terms of space, labor, and transportation to meet your business’ requirements. By using advanced tools and software technology, these firms can optimize their services to adapt to your business model and particular needs for a more efficient and less costly system of operations.
5. Improves Your Supply Chain Significantly
A good commercial logistics company can identify weaknesses and loopholes in your in-house supply operations and work to rectify them. As you build over time, the commercial logistics company optimizes its operations to meet this progression. This optimization prevents any unforeseeable problems and streamlines operations in the long run.
Hiring a Commercial Company is Never a Bad Idea
If you ever need some help handling your supply chain, remember you could always seek the services of a third-party company. These companies are extremely beneficial and will give you the freedom you need to improve other aspects of your business. Since about two-thirds of goods moved from Canada to the U.S are moved through trucks, you could do with a bit of help with your trucking operations too.