Freight is more than just a truck and a rate: success in logistics requires an understanding of the freight market to be able to optimize performance. Outsourcing logistics services like LTL (Less-Than-Truckload) shipping to a 3PL lets trusted logistics professionals share their expertise while allowing you to concentrate on your business.
Who’s Using 3PL’s for LTL Shipping
When a small company launches, self-fulfilling orders daily are manageable. However, once a business starts to increase its sales, keeping up with picking and packing can get time-consuming and overwhelming. It can even hold a business back from scaling as it uses up valuable resources. Many small businesses choose to outsource fulfillment and transportation to a third-party logistics provider (3PL) in order to focus on growing the business.
Mid-sized and larger companies can also benefit from using a 3PL. 3PL’s can help companies in changing their shipping strategy once they reach the next level of growth. For example, sometimes a full truckload is not necessary because there are not enough goods to fill the entire truck. LTL shipments allow companies to be more flexible with their shipments and a 3PL can help combine shipments by utilizing their network.
A large amount of e-commerce businesses partner with a 3PL to help them fulfill a variety of products. No matter the size of the company, a 3PL should be flexible enough to grow with a business as it scales so it can focus on increasing sales, and not on shipping.
Reasons to Outsource LTL Freight
There are several reasons why outsourcing LTL freight is beneficial:
Drive Efficiencies and Cost Savings. There are a lot of costs involved with shipping but a 3PL can help save money from operational efficiency, cost of labor, cost of technology, and using transportation management software to find the best rates. Optimizing LTL shipping takes a considerable amount of work. This is not dependent on the size or effort of the company as even larger companies need a lot of support because their logistics operations become more complete. Rather than investing in managing LTL shipments, a company can focus on other aspects of the business.
Access to LTL Technology. The best logistics technology requires continual investment, which 3PL’s do in order to service all of their clients. The systems that 3PL’s have to integrate easily into business platforms to provide visibility and control. Data is captured through the 3PL’s systems which provides the knowledge required to optimize a shipper’s logistics functions. Without the right technology, managing LTL freight becomes difficult. The tools a 3PL partner can provide through technology can improve your LTL shipping without having to purchase it yourself.
Improve Risk Management. Risks are always a part of shipping, but a 3PL can help to mitigate them and prevent delays and downtime that could adversely affect your business. Risks like theft, damages, and regulations can present liabilities for companies. A 3PL can provide full-time monitoring to be able to anticipate and remedy problems right away. Plus, logistics service providers are able to better vet providers and keep track of changes such as insurance certificates, agreements, and safety ratings. Outsourcing LTL shipping eliminates the complications and risks.
Leverage Carrier Networks. 3PL’s have better resources for shipping through their expansive logistics networks. This improves the rate and service a shipper can get as compared to on their own. A larger network also provides a safety net if a core carrier fails on a lane. Economies of scale, flexibility, and access to more carriers translate to cost savings and better shipping service.
Your Trusted Partner
With all the nuances of LTL shipping, it is best to consult a 3PL expert like Red Arrow Logistics. Red Arrow can save you time and money while giving you access to better technology and carrier network. In turn, you can focus on growing your business and increasing customer service. We are experienced in LTL and all methods of shipping and will provide you with high-quality service in addition to looking for ways to be able to reduce costs.
Red Arrow offers the scale and scope of services including air, ocean, and ground transportation to meet the budget and schedule requirements of the largest and smallest companies alike. If we can be of assistance, please email us at [email protected] or give us a call at 425-747-7914.
