Having a third party logistics provider is like having a teammate. The third party logistics industry plays a central role in managing domestic and global supply chains. Third party logistics is the backbone of the nation that supports the economy and keeps it going.  With approximately 35,000 jobs in the United States (not including warehouse employees), third party logistics providers help companies lower transportation costs, improve on-time performance, and even reduce carbon emissions by increasing cargo weight and running fewer shipping routes.

Third party logistics providers make things easier on all aspects of a business.  They manage all or parts of a client’s logistical requirements, such as transportation, warehousing, inventory optimization, fulfilling orders, and other essential functions.  As supply chains become more and more complex, more companies depend on third party logistics to provide essential services to support and sustain them.  Examine the benefits of pairing your business with a trusted service provider to ensure the maximal productivity of your company.  A logistics provider could take your company over the top and lead to even more success, thanks to the extraordinary services they provide.

Advantages of third party logistics

  • Companies can expect third party logistics providers to offer 10 key services:
  1. Including strategic capacity
  2. Logistics expertise
  3. Network analysis
  4. Mode and load network optimization
  5. Cost containment strategies
  6. Vendor compliance management
  7. Systems Support
  8. Actionable business intelligence
  9. Best practice sharing
  10. Customized services

These 10 services combined with multiple more show why third party logistics providers separate themselves from normal warehouse or shipping companies.  Third party logistics providers can be the missing link your business lacks, or it could be a major factor in the success of your business.  Logistics providers impact all aspects of behind the scene business work from shipping, to carrying, to warehousing.

Third party logistics benefits for shippers

Shippers who use third party logistics are able to move their product with maximum efficiency.  Shippers are equipped with fast shipping and able to move mass quantities of product quickly, over a large span of the continent, with little effort from themselves. For shippers, inefficiencies spell increased expenses. Taking advantage of logistics outsourcing allows shippers to better plan and control costs, while letting their workers focus on the business.

Third party logistics benefits for carriers 

For carriers, particularly smaller, independent trucking companies, third party logistics providers often provide a new stream of business opportunities, particularly in times where many shippers want to reduce management expenses by working with fewer carriers. Third party logistics help these small trucking companies secure loads they otherwise might not have been aware of or been able to bid on.  Third party logistics can help secure jobs to truck drivers who would not know about the opportunity.  By linking with a third party logistics provider, if you are a carrier or own a service, you can have work ready and available for you because they will outsource the work to you.