Why It Is Time to Outsource Your Business TransportationJune 30, 2020
Your business is expanding, and you have new transportation needs. Whether you’re opening a second location across the city or expanding your shipping radius, you might have already realized — delivery just got a lot more complicated. Many businesses underestimate the role of transportation in logistics. You make great products in high demand, and your transportation strategy can’t keep up anymore. Situations like yours are why companies partner with third-party logistics (3PL) providers to get their shipments in the right hands.
So, what are the advantages of transportation outsourcing? You’ll save time and money by working with expert logicians and fleet managers. If your transportation needs are growing, you stand to gain many benefits from partnering with a 3PL.
Take Advantage of Better Infrastructure
What is the main benefit of outsourcing the logistics side of your transportation operations? You get access to a fleet of any size, whenever you need it. Businesses can lose money when they handle their own logistics without the right trucks for each delivery. You might not have command of an entire fleet to help you optimize your loads.
If you need to send a small order across the city and all you have is a large delivery truck, you’ll be forced to send out your half-full vehicle. You’ll waste delivery space and pay extra for fuel you don’t need. Alternatively, if all you have is a small delivery van, you won’t have the capacity to deliver large orders in a hurry. Your customers might take their big rush orders to your competitors.
A 3PL has access to a robust transportation infrastructure to handle deliveries of any size. Delivery vans can ship small orders, letting you stay nimble. For larger shipments, a 3PL can send a van or truck in the right size to accommodate your load.
Besides not having to maintain and fuel-up your trucks, you’ll also be able to respond to sudden upticks in deliveries. As your business grows, you won’t need to expand your fleet. You also won’t need more vehicles to keep up with peak season when they’ll go unused for the rest of the year.
Track Freights Easily
Where is your order right now? An essential benefit of transportation management in logistics is the ability to track orders up to the minute. You want it for peace of mind, and your customers expect it. With a 3PL’s convenient tracking, there’s no need to call your driver or navigate to a different carrier’s website for every order. If you work with a 3PL, you can find your order’s current status as well as proof-of-delivery on a single tracking platform. An outsourced logistics partner will have the tracking capabilities and accuracy you need.
Increase Productivity and Results
A 3PL will have years of experience in the transportation industry. If you’ve ever questioned what the best way to get your shipment from point A to point B is, a logistics expert already has your answer. Outsourcing logistics lets you optimize routes and transit times to ensure best-value on-time delivery. Transportation managers will catch mistakes and mitigate shipping issues before they impact your relationships or business operations.
When it comes to delivering results, a 3PL is the clear answer. According to one study, 73% of 3PL customers agree third-party providers offer innovative ways to improve logistics effectiveness. Also, 81% agree their 3PLs have contributed to improving services for their end-customers. Many providers boast excellent on-time ratios, so you can trust them with time-sensitive shipments.
Without logistics management services, your company must work with carriers yourselves. When you have to find the right carrier for each new delivery, you can never be sure if you’re using the right carrier for each order. Because your customers look to you to make sure their deliveries are on-time, you can’t afford to make a mistake when choosing a carrier. A 3PL takes the guesswork out of transportation and distribution management with one point of contact for every shipment.
Get Robust Reporting and Intelligence
A 3PL offers access to the insights of a Transportation Management Software, or TMS. This technology is a game-changer and would be a significant investment for most small businesses with transportation needs. Through a TMS, all carrier routes and shipping costs are optimized, so you always know you’re getting the best rate and the fastest delivery time for any shipment you send out. The TMS chooses the best carrier to get the job done and automatically generates the bill of landing.
A TMS also generates custom analysis and reporting to help you make the best decisions for your transportation needs. Get cost allocation reports that break down freight charges by the mile or by the pound. You can also gain valuable data on your carriers. See who has the top on-time ratios, and who offers the best rates for freights of different sizes.
A 3PL gives you complete visibility into the freight forwarding process. Besides generated reports, a 3PL manager offers advice and analysis to drive better decision making.
Simplify Your Job
Why do companies outsource transportation? It makes life easier. Businesses often choose to outsource logistics when it falls outside their core competencies. Whatever your business does right — whether it’s baking the best pies, handcrafting wooden furniture or retailing affordable fashion — you shouldn’t get bogged down transporting products between locations or directly to customers.
When you outsource logistics to a team that lives and breathes transportation, you can rest assured, knowing the job is being done right. You’ll have more time to focus on differentiating your business and offering the superior products your customers crave.
Spending disproportionate time and money on deliveries can be a costly mistake for small businesses. You can’t always be sure if you’re getting the best value from your carrier contracts, and lower volumes can cost more. When you work with a trusted logistics provider, your partner can negotiate better deals from carrier contracts. You can also take advantage of the volume discounts and industry relationships that 3PL providers cultivate with carriers.
When you work with a 3PL, you have one point of contact for all delivery and shipping services. You can access the information you need or create new orders on one convenient platform. When you receive bills from your carriers, you know they’re accurate because a billing expert double-checks them. When you work with the right logistics manager, their team becomes an extension of yours. You can keep your staff lean and focus on what makes your business great.
Partner With Mitchell’sNY Logistics for NYC Business Transportation Logistics
Mitchell’sNY Logistics maintains a fleet of trucks and carrier partners for any delivery purposes you have. Our box trucks, tractor-trailers, and refrigerated trucks can take your products wherever they need to go, whether it’s from borough to borough or nationwide. We’ll send the right-sized vehicle for your order, whether it’s a single package, a less-than-truckload (LTL) freight or an oversized load. As an expert 3PL transportation and delivery team with decades of experience, we’ll take care of all your freight forwarding and last-mile logistics.
We provide the highest level of service to our customers and are a true single point of contact for any of your logistics needs. When you call us, you don’t have to go through a complicated answering system to speak to someone you’ve never met before. You’ll work with a local representative who understands your needs and can handle any requests you have.
Let us take your products where they need to go, so you can keep honing your business from your home base. Contact one of our helpful representatives to get started with our transportation services.