There are companies that do not need to move products. They don’t need to load onto trucks and physically carry what they offer to their buyers. However, among those who have to resort to shipping, the option to outsource a transport provider clearly wins out. Among the Fortune 500 companies – the list of companies with the largest market capitalization in the United States – 90% opt for the services of a 3PL-type logistics operator.
Four reasons to hire a transportation provider
The time is gold. And, furthermore, it is finite. We do not have an endless reserve of hours at our disposal, so we must select what we dedicate the time we have. In a company, this can mean the difference between being able to focus on where our product creates value (for example, making the most comfortable shoes for our target market) or having to divide our time with the task of assembling the logistics solutions of the company.
Another way to waste time (or save it, if we choose to hire a transport provider) is the number of hours needed to create, train and oil a team. Even more so if it is a whole logistics system, but also if it is only a part (for example, creating a merchandise warehouse and order preparation).
The experience of years, having a well-rounded team, is something that a good transport provider allows us to access instantly. And at just a fraction of the cost of building it yourself from scratch.
Transportation services are practically innumerable. Without leaving the most conventional, we have shipments of packages, loose pallets, groupage, with same-day deliveries, cheap, in large areas, depalletization…
But if we want to complicate our lives, we can make the leap to the logistics of pharmaceutical products, to controlled or frozen temperatures, to special measures, boom trucks, etc.
If it is already difficult to replicate the operation of a conventional logistics operator, doing so with one of these specialized classes is to redouble the bet. And sometimes it’s best not to gamble.
No matter how big a company is, having a sales department on another continent is not the same as having the necessary logistical capacity there to distribute what we sell. While advances like the internet have made it easier to sell products in faraway places, someone still needs to drive them there.
The international case is surely the most visual, but at smaller scales we are faced with the same phenomenon. Companies that have traditionally had their sales in a certain geographical area and that when wanting to make the leap to new destinations have to also consider their logistics.
The archetypal case would be that of the company that made its own local delivery but that when making the leap to commercialization at a national level realizes that it is impossible to scale its logistics and continue to cover it. So you have to resort to a new logistics provider.
There is more, of course, but these are four of the most common reasons for hiring an external logistics provider.