Third Party Logistic Providers
A third-party logistics provider (often referred to as 3PL) is a business that provides logistics support to other businesses. Typically speaking, a 3PL provides cargo solutions, logistics management, distribution solutions, and inventory management for businesses that lack the in-house capacity to do so.
In other words, a 3PL will provide warehousing and transportation services that are especially scaled and customized to a customer’s needs based on market conditions. 3PLs may also provide services that are of use at other points in the supply chain, such as procurement of goods and peripheral items.
3PLs generally possess greater knowledge and greater expertise than any producing or selling business. This expertise combined with the large networks enables a higher time and cost efficiency.
The equipment and the IT systems of 3PLs are constantly updated and adapted to new requirements of the industry. Producing or selling companies often don’t have the time, resources, or expertise to adapt their equipment and systems as quickly. We pass that advantage on to you.
Low cost commitment
The fact that most or all operative functions are outsourced to a 3PL provider means there is no need for your business to own a warehouse, lowering cost. This is particularly helpful if a company has high variations in warehouse capacity uses, because a bad capacity utilization ratio at equal fixed cost (for warehouse) will reduce a company’s profitability.
In other words, we help you make the most of the space you pay for.
The outsourcing of logistics departments allows your business to focus even more on core business. The continuous increase of business complexity makes it impossible to be an expert in every division or sector.And if you are no expert in a division, there is always the opportunity to improve.
We take operational worries off your plate and allow you to focus on your business.
3PLs can provide much higher flexibility in local deliveries and can offer a much larger variety of services than businesses could provide for themselves. In addition to that, the businesses have flexibility in resources and workforce size, transforming fixed costs turn into variable costs.
What it all means for you
A 3PL is more than a third party business, it’s an integrated portion of your business’s operation. As a 3PL in Nashville, TN, M&W Logistics works hard to make sure your business operations are running as smoothly and as stress free as possible.
To learn more about our services and how we can increase your business efficiency, call us today!