Researchers Discover Large Increase in Fortune 500 Companies Using 3PL Services
When it comes to retail and manufacturing, it’s difficult to keep up with industry trends. Consumer behavior now dictates many of these changes as companies struggle to provide instant gratification better than their competitors.To meet and exceed customer needs, many Fortune 500s now partner with third-party logistics providers. In fact, researchers noted a sharp increase over the last 15 to 20 years. In 2001, only 46% of Fortune 500s relied on 3PL services. As of 2017, this stat has now climbed to a whopping 90%!
The Effects of Specialization
Industrialization heralded the modern age in business and commerce. It brought with it the specialization of roles within organizations. Over time, this expanded to specializations on a company level. When businesses partner with others that specialize in specific services or niches, they realize savings from economies of scale.There are also fewer repercussions from a steep learning curve. When it comes to transporting goods, there are laws to keep up with at the domestic level and even across state lines. Go across national borders and those laws become even more complex. This is just one of the many reasons Fortune 500s prefer to leave this function up to those with knowledge and experience.
Additional Benefits of Working With 3PLs
Cost-savings and compliance are just two of the many advantages of working with 3PLs. Here are some additional perks to consider:
- 3PLs make use of warehouses spread out in various regions to allow them to ship from the stock closest to customers.
- When 3PLs handle compliance issues, companies can focus their resources on what they do best, such as customer service or manufacturing.
- Working with 3PLs allow companies to set a specific budget for logistics, so they can plan more effectively.
Choose Experienced Allies
To realize the many benefits highlighted above, it’s important to work with the right 3PL. Otherwise, companies may find themselves worse off than if they had tried to handle all the work on their own. Contact SureShip by calling 301-273-1651 or emailing us today to get a specialized quote from a leading company in the industry.