What is Third-Party Logistics, and How Can it Benefit Your Business?

By Brian Matos | Published On December 15, 2022 | Last Updated On December 15, 2022

Most people in the business world know what logistics is. Logistics is the side of the business that handles the supply chain and the shipment of goods from one place to another. It can also involve direct shipping of products ordered online, but what is third-party logistics?

Third-party logistics, or 3PL, is taking the logistics side of one's business and outsourcing it to another organization to handle it. How could a third-party logistics partner benefit your business? There are numerous ways.

Outsourcing logistical support can give businesses more time and resources to devote to other parts of their company. Managing logistics has many factors and can also come with a great deal of cost. You might ask yourself, “Why should we outsource this side of our business? Isn't it cheaper to handle it in-house?” When you consider the infrastructure of adding trucks, maintenance shops, and other pieces needed to transport large amounts of goods around, you are looking at a considerable time and expense you have to cover. For example, according to Indeed, the average truck driver earns just over $70,000 annually. Adding benefits and other costs to the equation can run around $140,000 yearly.

This is where hiring a 3PL partner can help. Instead of standing up a team to handle things like shipping, warehousing, fulfillment, kitting, and other things, hiring a 3PL simplifies those processes for you so you can focus on what you do best for your business. It is also critical to find the right 3PL company for your business. You must have a good relationship with them, and they must take the time to truly learn about your business. All this helps build credibility and trust. Once you get over the initial learning curve, you can expect smooth sailing.

A 3PL partner can be of enormous benefit to your company. Contact us to learn more about how PTS Corp can help you with your logistics challenges.