Why Use Third-Party Logistics Providers?

Regardless of the size of your organization, chances are that your company can enjoy several benefits from partnering with an experienced logistics provider. In many cases, the preferred solution is often a third-party logistics help, often referred to in business parlance as TPL or 3PL services.

Using this kind of assistance essentially puts all or part of your business’s logistics in the hands of a separate company. This company then handles warehousing, fulfillment, transportation, inventory, and other related assistance on behalf of their client. These types of services are now extremely popular with small startups and large companies alike, with many organizations completely dependent on 3PL services to handle all parts of their logistics.

Here are a few reasons 3PL assistance are now extremely popular with firms of all sizes:

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1) They can improve your service levels


Because 3PL’s are focused primarily on solving logistics issues, they tend to be much better on various these types of tasks compared to most in-house logistics departments in companies with a focus on other areas. Because of their expanded capabilities, they tend to be able to move goods faster and move them to more places than a typical in-house logistics department might be capable of. The result is that customers usually get their goods sooner and cheaper, which usually results in a positive experience.

2) Pricing tends to be cheaper compared to courier services

A 3PL service can usually leverage different connections across different geographical areas to offer rates substantially lower than those of larger courier and carrier services. They can also count on specific knowledge of incoming orders, forecasts, and bulk rates, and other factors to offer even more competitive rates and solutions to their clients.

3) 3PL services allow smaller businesses to have a slice of their markets


Even single proprietorships can leverage the capabilities of a 3PL service to allow them a presence in markets that were once the sole domain of larger businesses. 3PL companies are an often under-appreciated force that has allowed both small businesses and customers more democratic access to different markets.

4) They can simplify doing business

Logistics can be incredibly complex, and smaller companies don’t usually have the resources to perform it effectively. Hiring a 3PL company to do this type of work allows small business owners and managers to forget about the minutiae of warehousing, transportation, and fulfillment, letting them instead focus on performing to their unique strengths. What should a service like that entail, you can check out on this website.

Another way a 3PL service can simplify doing business is that it allows a firm to better manage and control their expenses, as they will not need to think about staffing, plant asset acquisition and maintenance, IT issues, and all the other areas a business will need to spend on if they choose to have an in-house logistics team.

5) 3PLs can help your business gather critical customer data


Every 3PL company today relies on sophisticated IT systems to do virtually all their functions as efficiently and as cheaply as they do. These systems can also be invaluable sources of data on customers, which can be important for companies of any size. This data can then help guide an organization’s marketing strategy as well as their product and service development efforts.


Any firm that finds itself in need of logistics solutions should at least consider the benefits of going with a 3PL for handling all or part of their logistics and supply chains. The benefits of outsourcing this in most cases far outweigh any drawbacks if any.

If you’re looking for a reliable 3PL assistance that can help you with your needs Red Stag Fulfillment is here to help. They’ve been in the business of helping other companies across the US with their 3PL needs. Check out our website and learn more about us today!