Freight brokers and 3PLs both continue to provide beneficial and advanced services to aid shippers through various logistic situations. With recent e-commerce market expansion, combined with a projected 19.07% CAGR for the e-commerce technology market, now is the time for shippers to act, reports Yahoo Finance. The stress on the transportation industry is on the incline, and there’s little hope of slowing. However, working with a 3PL or brokerage can help shippers immediately find capacity and expert guidance regardless of industry vertical. These 3PL benefits for shippers are too great to ignore, and here are the reasons why.
3PL Benefits for Shippers: Working With a 3PL Alleviates the Nightmare of Transportation Procurement
Procurement refers to supply chain managers responsible for purchasing any product, such as raw materials, services, logistics, or otherwise. Rather than allow procurement to consume a valuable amount of business resources, a 3PL uses the tools and software for efficient freight procurement and manages end-to-end services. Partnering with a 3PL can assist with booking and scheduling despite the marketing continuing to boom. Such advanced digital tools make it easier to derive meaningful benefits to shippers.
For example, shippers enjoy the perks of real-time booking and data analysis and promote collaboration to streamline the procurement process and manage the end-to-end settlement smoothly. That also helps avoid the nightmarish issues of finding capacity in extremely tight markets.
As a further example, imagine how troublesome it is to find capacity for drayage service near major ports of entry. Working with a 3PL puts that burden on the company, letting your team focus on what really matters, customers and sales.
3PL Benefits for Shippers: 3PLs’ Expertise Builds Resilience Through Instant Network Connections
Today, many factors can affect supply chain operations and cause disruptions that can lead to issues with productivity, customer service and result in lost revenue. To prevent this from happening, shippers must build resilience to ensure they can recover operational capabilities after such disruptions. 3PLs and freight broker companies create more resilience through data-driven decision-making. These advanced supply chain analytic tools give rise to predictive capabilities that afford shippers a better view of what’s happening, why, what’s likely to happen, and what’s needed to maximize profitability and reduce costs.
3PL Benefits for Shippers: Higher Costs of Running Trucks Will Put a 3PL’s Buying Power at the Center of Negotiations
Rates continue to rise and are expected to last into the new year. Shippers must act quickly and find a solution to the rising issue of higher carrier rates, and that solution is to increase their buying power. 3PLs immediately have a more considerable buying power than many individual shippers, especially small and midsize businesses. Further, 3PLs can assist with contract negotiations to ensure shippers receive proper carrier service and the best rates. Despite higher rates affecting the industry today, 3PLs provide shippers quality benefits through advanced technology, tools, and visibility to monitor carrier activity.
Utilizing these tools to monitor the carrier’s activity and performance allows shippers to get ahead of future freight RFPs. Shippers will have the information needed to negotiate confidently despite the higher costs throughout the supply chain and outside of it. As costs everywhere continue to rise and cause issues with budgeting, analytics, and capacity, more and more shippers use a 3PL as a partner to leverage the difficulties.
3PL Benefits for Shippers: 3PLs Help Lock Rates Throughout Disruption and Changing Trends
Throughout the latest trends with driver shortages and the expectancy of this being a record-breaking peak season, rates are also expected to exceed expectations. Despite such dilemmas, shippers can have a positive peak season and grow business at a rapid pace through a 3PL. Partnering with a 3PL provides shippers with the proper services and tools to achieve locked-in rates, total shipping cost reduction, and ensure resilience. A freight broker also enables supply chain optimization through data-driven management and a role as an advisory service.
3PL Benefits for Shippers: Improve Efficiency in Your Logistics Strategy by Choosing the Right 3PL Partner
With the high expectancy of this peak season and the year to come, shippers must prepare the best they can. Continuous difficulties with driver shortages and higher carrier rates will continue throughout the new year, and without a proper solution, shippers will suffer throughout the supply chain. However, working with a 3PL can provide shippers with achieving improved visibility, analytics, and rates despite the trends continuing to cause issues. To learn more about these benefits and realize the results of a quality 3PL partnership, speak to an expert at Wicker Park Logistics today.