Cost Benefits to Third-party Logistics (3PL) Outsourcing

Having the proper partner in business can make or break a company. The right partner can help build your business, its service to customers, and profitability. The same can be said for logistics partners that help get your freight where it needs to go. 

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A recent statistic found that of the companies that outsource their freight, 62% are planning on stepping up their use of third party logistics (3PL). 

If you are thinking about outsourcing your freight, here are some cost benefits to using third-party logistic partners:

With the use of third party logistic partners, your shipments can be consolidated into a full truckload. Your price becomes shared with other companies shipping to nearby destinations for savings of 25% compared to LTL routes. 

With 3PLs, you are able to have your own private fleet, having your shipment moved whenever needed without the costly burden of buying the fleet of trucks, maintaining equipment, and hiring or firing drivers. 

You also reduce your liability in the shipment. This is due to the fact that once a shipment is picked up by an outsourced carrier, the carrier becomes liable for ensuring the freight will get where it needs to go, on time, and in perfect condition. This lowers your overhead - as your company no longer needs to be liable to the driver, including their compensation, or any damages that arise due to an unforeseen incident. 

Third-party logistics partners are able to find better rates for your freight as they work with carriers on a daily business. With this, they are able to achieve much lower operating costs per load due to the volume of freight moved with each carrier, allowing for substantial discounts with carriers.

As outlined above and for many other reasons, outsourcing freight to third-party logistics providers can significantly enhance your operations and profitability. Benefits of using 3PLs include cost savings through shipment consolidation, reduced liability, access to private fleets without the associated costs, and lower operating costs due to better rates negotiated by 3PLs. 

If you're interested in learning more about how our third-party logistics services can benefit your business, please contact us at ben@hillislogistics.com. Our team is ready to help you optimize your freight operations, reduce costs, and improve overall efficiency. Reach out today to start a conversation about your logistics needs and how we can support your business growth.