Industry World Growing Companies magazine reviewed the services offered by third party logistics firms and said, "This is the way to cut costs!" Here's their actual quote, from an article written by Lisa Harrington.
"Looking to cut inbound and outbound freight transportation costs by thousands of
dollars per year? Consider contracting with a third party to manage dedicated truck fleet
and core carrier operations. Third-party logistics (3PL) providers generate savings, in
part, by combining a manufacturer's shipments with those of other customers to maximize
mileage and load efficiencies on common shipping lanes. On its own, the small
manufacturer could not have tapped into such synergies."
Harrington reported that "Outsourcing can and does produce significant bottom-line
gains - in both cost savings and revenue enhancement."
Forty-one percent of respondents to a University of Maryland Graduate School of
Management and Technology study cited savings as the reason they outsource. The
same study concluded that the more activities a company is willing to outsource, the
bigger the savings.
The IWGC article continued, "Logistics outsourcing often makes terrific sense for
growing companies. Why spend precious resources on activities that aren't your core
business? . . . To improve customer service, contracting out functions that cut delivery
times and improve delivery accuracy to external customers work best."
