The Business Objectives of a 3PL Provider

A logistics management company is responsible for arranging safe and speedy transportation, providing warehouse solutions, as well as facilitates the distribution of materials. They also look after the export and import of goods in some cases as well. These are some of the basic functions of a 3PL management company.
3PL Provider Capability

With the passage of time, some of the well-defined boundaries of logistics are blurring and logistics providers have added a number of innovation service offers. To make sure that these are beneficial towards making the supply chain management smoother, improvements and enhancements have to be constant. Given below are some of the important objectives that 3PL providers can have:

  • Enhanced Customer Service: One of the most important things that any business, regardless of the nature of its operation should strive towards is better customer service. This involves better handling of transportation and the overall logistics operation. This can be done by opening up new distribution centers in places where the service helps transports goods and raw materials and widen their overall network of carriers and delivery services. Customer feedback must also be given due importance.
  • Enhanced Efficiency: Efficient service is one of the most important things that ensure the success of the business. Hence, 20Cube logistics constantly works towards securing enhanced efficiency in all aspects of service. Overall efficiency can be increased by developing a highly cost-effective system of transport and reducing overhead costs and well as simplifying the order processing.
  • Fast Response: In some cases, the efficiency of the service of an organization is measured against the length of their response. In logistics, this is especially important. This is because when it comes to packing and transporting goods, time is of the essence. Some goods have to reach their destination within a specific period of time as the demands are huge. Hence, fast response time is an important objective of third-party cargo transportation services.
  • Decreasing Distribution Costs: One of the ever-present long term goals that most logistics companies have is the reduction of costs. By decreasing transportation and warehousing costs, the business can ensure increased profits and also attract more customers with attractive rates. Consolidating shipment can bring down energy costs, as will maximize transport routes. When these cost savings are also enjoyed by the customer, the benefits to the 3PL service is double fold.
  • Better Customer Relationships: This can be ensured only when the above-mentioned objectives are realized. As the success of a logistics business is solely dependent on how the potential customers perceive them, most third-party logistics providers make sure that the customers are happy and satisfied with the service provided.

The best way to ensure that these objectives continue to be realized in the course of time, there are some important things that have to be kept in mind. It is not just enough to achieve the above-mentioned objectives at a single point of time, but keep on improving them over a course of time.

20Cube Logistics is a new age digital logistics company and provides superior services to customers efficiently which leads to cost reduction and high satisfaction level.

The main objective of a global shipping company and logistics providers must be to seek ways to improve customer service and satisfaction, reduce distribution and transportation costs, and eliminate factors that cause inefficiency.

Post Author: 20Cube

1 thought on “The Business Objectives of a 3PL Provider

    Raj Sharma

    (May 1, 2019 - 11:06 am)

    It is a really good analysis of what services 3PL companies provide and how it is more beneficial and convenient. All the points explaining the cost of transport, warehouse, and inventory are so used to maintain good supply chain management and increasing business performance. The 3PL has it’s own benefits and demerits. Your article will help with good warehouse service and management.

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