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How the Right 3PL Can Help You Optimize Network Design

Jeff Alexander / 3:00 PM on January 22, 2015

network_design

Running a successful manufacturing company, in many ways, is very similar to juggling. With juggling, every throw and catch must be perfectly in sync, otherwise everything falls to the ground.

When you’re running a business there are many different aspects that need to be juggled properly in order for you to be successful. Workflow, materials management, and production are just a few of the clubs you’ll need to contemplate. Add in the logistics of shipping finished products to your customers and you’ll quickly realize it can be a tough act.

Fortunately, you don’t have to perform the act solo. Delegation of tasks is one of the keys to success. If you really want to consider optimizing your network and overall efficiency, consider working with a third party logistics provider.

3PLs Can Keep Your Supply Chain Running Smoothly

Third party logistics (3PLs) can offer a wide array of manufacturing support services. These support services work in a variety of ways, depending on what your company needs. Typically a third party logistics provider will specialize in the implementation and optimization of shipping, transportation, and warehousing. As the 3PL manages the flow of your goods and provides warehousing solutions, it gives you the opportunity to focus on other aspects of your business like learning to optimize network design.

The warehousing solution alone can be invaluable. A common issue for many businesses is inventory management and storage. Having accessible storage can help you tighten your inventory control, manage shrink, reduce shrink, and help you better forecast your production needs.

Building Your Network

Due simply to the amount of freight they are working with, a third party logistics provider leverages a higher buying power over many trucking companies. Not only does this help to reduce your shipping costs, but gives you the ability to expand your distribution radius. Normally a single trucking company will only run certain lanes, which can limit your distribution area. A 3PL, on the other hand, works with several different companies, all of which work a number of different shipping routes and lanes, letting your network build and grow.

With a low capital commitment, wider market radius, and overall reduced costs, a 3PL can be just the thing you need to help your business be a success.

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