It has become increasingly common for companies of all sizes to outsource their logistics needs. Not only does this save organizations a great deal of time, but it also relieves them of the substantial investment required to manage shipments in-house. Hiring a third-party logistics (3PL) provider offers a one-stop solution for moving products through the supply chain. In turn, this helps to cut down on expenses and maximize profitability. Here are a few ways working with a 3PL can save your business time and money.

How Third-Party Logistics Can Benefit Your Bottom Line

1. Reduce Overhead Costs 

There are many overhead costs associated with fulfilling product orders. You can significantly reduce or eliminate these expenses by having a third-party logistics provider take over your shipments. They have everything necessary for warehousing, packaging, assembling, and distributing your goods. This allows you to pay a fixed rate for their services rather than paying for storage space, equipment, and materials separately. This will also help you cut labor and technology costs, as a 3PL will have staff and logistics management software. 

2. Access Lower Shipping Rates

Partnering with a 3PL provider will give you access to an extensive network of shipping carriers. These services will ensure that your products are shipped on time, safely, and to the correct customers and vendors. In turn, they have leverage to negotiate a better rate on transportation services based on the volume of shipments they have going out from multiple clients. Without their assistance, carriers aren’t likely to offer the same discounts.

3. Avoid Expensive Delays 

Third-party logistics providers have valuable industry experience to ensure products are correctly packaged and transported. They implement strict quality assurance guidelines and tracking procedures to make sure that shipments arrive at their destination safely and within the appropriate timeframe. When orders are fulfilled internally by less experienced employees, it increases the risk of product loss and delays in transport. This can lead to mismanaged inventory and dissatisfied customers.

If you’re ready to give your bottom line a boost and partner with a reliable third-party logistics provider, turn to Hawaii Transfer Company. Based in Waipahu, HI, they’ve been offering businesses across Oahu cost-effective fulfillment and distribution options since 1931. By utilizing their sophisticated computer system, they connect to your network to organize secure and efficient transportation services. You can depend on them for unmatched logistics support designed to help your company grow. Call (808) 677-3111 to discuss your outsourcing needs, or visit them online to learn more about their services.