Inbound logistics refers to the freight coming into your business and how those goods are transported, delivered to your business, and warehoused. Your inbound logistics team manage the relationships and processes between supplier/manufacturer. Outbound logistics means the same but refers to the goods leaving your business. The outbound logistics team will maintain the relationships and processes between the company and your customers. The combination of inbound and outbound logistics is your supply chain management.
3PL is the acronym for third-party logistics and refers to when a business uses a third party to manage their supply chain or elements of the distribution services. 3PL providers are becoming vital to retail business owners who are trying to expand their online stores or e-commerce business owners who run their business entirely online.
One of the reasons Amazon has been so successful is because of their Prime free shipping. Nearly three-fourths of all consumers say that free shipping influences their choice in retailer or brand. Because Amazon does it best when it comes to super fast, free shipping, it can be hard for smaller companies to offer the same services. When you decide to start your supply chain off the right way with inbound logistics top 3PL providers, you are saving time and money from the beginning of your supply chain.
3PLs specialize in supply chain management and can ensure that the chains between you and your supplier run smoothly so that you can make sure your business has all the materials needed to create your products so that you can fulfill orders in an efficient and timely manner. Most of the transportation costs associated with your supply chain rise from the cost of inbound logistics.
Here are four reasons why you need the best inbound logistics top 3PL company working for you.
Your vendors are operating their own businesses and will always have their bottom line in mind first. If your vendors are in control of your inbound logistics processes, you may not always have the best available rate available to you. When your vendors are controlling the shipment of products, they may have relationships with carriers that offer them a discount; however, that discount is not usually handed down to your business. In this way, your vendors make a profit off shipping costs as well as the materials they are supplying you with. When you choose to hire an inbound logistics top 3PL company to your supply chain team, you can reduce your shipping costs through consolidating freight, backhauling, and having carrier rates negotiated by a well respected 3PL company with many networks and connections.
Inbound logistics teams use the latest software and technology to gain insight into your inventory control processes so that you have real-time data on what your supply or inventory needs are. Your logistics team can help you avoid understocking, overstocking, and overbilling so that you can maximize your storage space without a disruption in the flow of your products to your customers. The inbound logistics top 3PL providers also offer warehousing services, allowing you to keep your supply chain offsite, saving even more money in property costs. Your 3PL provider can also provide flexible space, reducing your warehouse space during the slower season and increasing it during the busier seasons and holidays. This means your storage and warehousing costs can flex just like your business does.
The amount of paperwork associated with your supply chain is enormous. By using inbound logistics top 3PL providers, you can streamline your administrative and accounting processes through one platform, reducing the overall amount of operations, which means less risk. Your 3PL company can use efficient and innovative filing and tracking technology to file and track bills of lading, freight claims, invoices, vendor contracts, carrier contracts, and more. 3PL providers can drastically reduce your administrative overhead.
When you have your supply chain operating at optimum efficiency your customers will receive their products in record time, at a great price, and in excellent condition when it gets to their door. You need an inbound logistics top 3PL team backing up your network between your vendors and you.
Depending on the number of vendors you use, keeping track of vendor compliance with inbound logistics and contract negotiations can be overwhelming. Top Third-party logistics providers are able to efficiently manage all of your contracts and compliance efforts which save shave dollars off your bottom line.
The net gains to your profit and efficiently running, highly optimized supply chain that increases your business reputation is enough to overshadow any potential drawbacks to partnering with inbound logistics top 3PL providers. One of these top 3PL providers is LTX Solutions. Contact them today to start your new inbound logistics partnership.