Why pay somebody else to do something that I can? My product, my customer, my business; my responsibility. Your business is your responsibility and managing your own logistics can feel like part of that responsibility, but what if there was a better way? Even more, what if there was a cheaper way? Why pay somebody to do something that I can? Because a third-party logistics provider, or 3PL, can do it cheaper and more efficiently.
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Many times, the misconception is made where businesses think they can manage their own logistics, such as warehousing, staffing, and transportation, more cost effectively than if they hired a third-party logistics provider. The fact is, they can’t. Keeping things in-house, keeping them under complete control, and keeping the circle closed is the mindset behind third-party logistics provider rejection. Instead of playing a game of keep, you can play a game of grow. Let’s look at a few aspects of how third-party logistics providers operate, and you can decide if efficiency lies in complete control, or in partnership and cooperation.
The Ability to Flex up, or Down
Let’s scale things down a bit. Imagine you are a child again and you have grown a knack for collecting rocks. So, you get a box and begin collecting, and before you know it, your box is full. Here lies the question; do you build another box, or do you ask an adult if another one is readily available? How much time do you waste searching for a box, building a box, or thinking about which box to use, versus simply asking an experienced, rock collecting adult, to fetch you the best box possible?
This is a simplistic approach to how 3PLs can operate. Third-party logistics providers are built and bred on workforce and warehouse management efficiency. Third-party logistics providers love your passion for collecting rocks, and we would love to help you store and move them, organize and trade them.
Scaling things up to the size of a national enterprise, logistics is more than storing and sorting rocks (in most cases). Premiere logistic management requires warehouse construction and maintenance, specialized fleet, task-oriented technology, and floor-level staff and management. Core design and production is where a company’s in-house team excels; logistics is where logistics companies excel. When companies try to manage their own in-house logistics, they take on the responsibility of warehouse construction, which is a massive up-front cost, paired with ongoing operational maintenance.
They also face the issue of fixed capacity limitations, meaning once the building is full, it’s full; time to build another one. Finally, buildings aren’t just buildings. Depending on the product that is stored and managed, specialized technology and workforce may be necessary to ensure the level of a company’s core quality value is met consistently. Third-party logistics providers like NOTS Logistics are built to guarantee success in each of those fields.
What About Transportation?
Products can’t be made to just sit in the building they were produced, they must be moved. Putting products in a truck and going from A to B seems simple enough, but safe, legal, and efficient transportation is much more. Skilled drivers, truck maintenance, and DOT compliance are just a few things that come with managing your own transportation. At the very heart of NOTS Logistics and other 3PL companies, is successful, efficient, and compliant transportation. You keep making, we keep moving.
Cost Effective and Efficient
So where does cost effectiveness come into all of this? Sure, if you build or buy it, you own it. The ongoing cost is where the issue lies. With a 3PL, fixed costs allow greater flexibility and more intuitive financial forecasting. Instead of investing in buildings, transportation, and staff, you can invest in a trusted partnership that is already a cost friendly expert in the field. This allows you to focus more on your core business activities and creating a more sustainable business model for future growth. While all of this sounds great on paper and might make you want to dive in immediately, let’s look at the most important thing you should consider. Who do I choose?
Choosing a Partner
Third-party logistics providers are a no-brainer; however, you must choose the right one. Each 3PL is tailored differently for different workforces and business needs. Core values, location, cost, and reputation are just a few things to consider. You can also ask yourself things like, “Do our business goals align,” and “Are they truly able to scale their services according to our demands?” At NOTS Logistics, we have answered those questions with success and integrity in multiple partnerships. (core values, location, cost difference, business goals, and scalability).
Why pay somebody else to do something that I can? The moniker that haunts individuals with the drive to try their hand in everything, “Good at everything, expert at none”, should not be the case in the business world. As a successful and trusted third-party logistics provider, NOTS Logistics understands the drive and desire to do more in a demanding and expanding world. That’s why we begin by establishing a firm foundation in business relations, understanding your dreams and desires, and developing a bond of trust that ensures success for everybody involved. We move what you make, grow in step, and celebrate success in partnership. How can a 3PL assist in doing what you can, only better?
