Chicago's Leader in Warehousing and Distribution, Presents its Blog:

How Third Party Logistics (3PL's) can help your business.

Posted on Fri, Jun 10, 2011 @ 08:18 AM

Chicago Public WarehouseNeill Cartage and Warehouse is Chicago's premier full service logistics, warehousing, and distribution company.  Servicing the Midwest since 1946. 


Third party logistics (3PL) is a term used for companies that offer services like transportation, warehousing, and inventory management to their clients. Previously, third party logistic providers were providing limited services like freight forwarding, but with the passage of time, these companies have gradually started providing a wider range of services that include everything from warehousing to supply chain management. Hiring a third party logistic provider is a common practice these days, because of many advantages associated with third party logistics.

Logistic Management is required in almost all kinds of businesses, but for businesses like manufacturers, wholesale, or distributors, logistic management can be absolutely vital. Previously, businesses were forced to make some arrangements within the company to deal with everything related to logistics. However, with the coming of third party logistic companies, it has become easier, and more cost effective for businesses to outsource logistic management to a specialist firm.

Third party logistic providers offer all kinds of benefits that we normally associate with outsourcing. For example, third party logistic services can offer a cost advantage, for the reason that hiring a 3PL company costs less than what is required for setting up and maintaining a logistic system of your own. If you are managing the logistics yourself, you will need to have a warehouse, transportation, and trained labors. Money is not the only thing that you can save as delegating the logistic management to a third party allows you to conserve your time and efforts, so that you can use your time and resources to focus on your primary business.

Third party logistic providers are specialist firms, having the infrastructure to deal with everything related to logistics. Which means you will be utilizing the most up to date services and technologies without having the need of upgrading or updating anything on regular basis. The expertise these professional firms have will help you in running your wholesale or trading business more efficiently. For example, when you are trying to enter a new market, it can take months trying to learn the ins and outs of that particular market. On the other hand, hiring a third party logistic providers mean that you will be able to use their experience in that particular market right from the start.


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Tags: Third-Party Logistics