Logistics in-house vs thridparty

Managing transportation. Which direction should your company go?

Managing Transportation. When weighing your transportation management options, remember to consider how each relates to the three main areas: People, Technology, Vendors

Managing In-House. Pros: You know your business best; easier to resolve issues; more flexibility to adapt to change. Cons: require more work and larger staff; carrier relationships can be difficult, hard to know if rates are competitive

Outsourcing to a 3PL. Pros: better rates from wider variety of carriers; less overhead costs; fewer staff needed; access to latest technologies. Cons: difficult to end relationships; less control over deliveries; difficult to communicate with drivers

Things to consider

Things to consider. Think beyond the initial investment. Do you have the ability to commit to continual and unpredictable investments that are needed to improve your capacity. Is it beneficial to commit to these continual investments?

Things to consider. Think beyond the initial investment. Ebb and Flow. Experience seasonal drops in or spikes in sales? Unplanned expenses? 3PL providers can handle these ebbs and flows and can protect your business from related expenses.

Things to consider. Think beyond the initial investment. Ebb and flow. Special handling requirements. Consider how much you spend on special packing materials (coolers, gel packs). 3PL providers can reduce these costs and increase consistency.

Choosing the right 3PL. Ask the right questions. 1. How do they manage accounts? Do they give access to reporting data? Do they have regulatory expertise?

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