Logistics Companies Level the Playing Field for Business

The freight industry has seen many changes in the past 25 years with many companies now choosing to outsource their freight logistics to third-party logistics providers rather than handle all of their freight and warehousing needs in-house. Third-party logistics companies offer integrated or “bundled” services that can be customized to a client’s needs to provide any or all of a company’s supply chain management function. These services may include transportation, inventory management, storage, warehousing, cross-docking, order fulfillment, and freight forwarding allowing businesses to better concentrate on their core business. Freight forwarder 

Outsourcing logistics to a third-party logistics provider makes sense in today’s increasingly competitive marketplace in which companies need to become leaner, reducing costs and assets. Labor and associated costs are among the highest for a company, making outsourcing of freight management and employees very cost-efficient. Warehousing costs can be significantly reduced by outsourcing, reducing also asset liability. Efficiency of scale allows asset third-party logistics companies to provide competitive pricing for the small and medium-sized businesses on a competitive level with Fortune 500 companies.

Logistics companies provide the experience, expertise, and networks that are otherwise unavailable to many businesses with in-house logistics departments. Because they have relationships with transport carriers with whom they do a significant amount of repeat business, they are able to negotiate much lower freight costs than individual companies can typically warrant. Additional savings are possible by taking advantage of a centrally-located third-party logistics company in a major hub city with warehousing and order-fulfilling services. Outsourcing costly, extraneous tasks necessary to business but not a part of the core business allows small and medium businesses compete and succeed in a global marketplace.

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