| For most manufacturers, the second biggest | | | | to a 3PL provider, you have to make sure that |
| operating cost next to payroll is the cost of the | | | | you're outsourcing to a provider that meets your |
| shipping process. If you dream of starting a | | | | shipping needs. There are four types of 3PL |
| manufacturing company and making it big, you'll | | | | providers: standard 3PL providers, service developers, |
| eventually realize that maximizing your bottom line | | | | customer adapters and customer developers. |
| has more than to do with how many products you | | | | Standard 3PL providers and service developers are |
| sell; it also has to do with how economically you're | | | | extremely affordable, but they don't take a |
| able to ship your products. The more products that | | | | comprehensive approach to the logistics function, |
| companies produce, the more their shipping costs | | | | instead offering particular services. Customer |
| increase, which has lead to a competitive carrier | | | | adapters take a comprehensive approach to the |
| industry that offers several shipping options for | | | | logistics function, but they don't develop innovation |
| companies of all sizes. To arrive at the best shipping | | | | solutions, instead functioning in a managerial capacity. |
| solutions, companies have three basic options: they | | | | Customer developers take a comprehensive |
| can hire in house logistics experts; they can | | | | approach and develop innovative solutions, but hiring |
| outsource to third party logistics (3PL) providers; or | | | | a customer developer can be as costly as hiring your |
| they can implement freight optimization software-also | | | | own logistics team. Unless your company is looking |
| known as truckload logistics software and logistics | | | | for a specific service offered by a standard 3PL |
| software. Below, we look at these options to | | | | provider or a service developer, chances are that the |
| determine which ones suit which companies best. | | | | narrower range of shipping solutions that comes with |
| Hiring In House Logistics Experts | | | | using 3PL isn't worth the price. |
| Because finding the cheapest shipping solutions | | | | Implementing Freight Optimization Software |
| without compromising shipping quality is predicated on | | | | For shipping companies of all sizes, implementing |
| logistics, it makes sense that a company would hire | | | | logistics software is quickly becoming the most |
| its own logistics experts. However, hiring a team of | | | | innovative and affordable shipping solution. The |
| logistics professionals can result in a payroll increase | | | | software is developed and marked by software |
| that small companies can't afford, leading them to | | | | companies that employ logistics experts and are |
| examine whether 3PL or logistics software would be | | | | overseen by business veterans of the shipping |
| more affordable. If your company has grown to the | | | | industry. Logistics software is available on a SaaS |
| point where it's on the brink of purchasing its own | | | | model and as an internal software solution. In either |
| shipping fleet, hiring your own logistics experts is | | | | case, logistics experts tailor the software to sync |
| probably an affordable proposition, and it will bring the | | | | with a company's unique shipping process, which the |
| benefit of having your shipping process managed | | | | company then controls by accessing the software's |
| internally by devoted employees. But if your | | | | easy to use interface. Logistics expertise is not |
| company can't afford a payroll increase, there are | | | | required of logistics software users, and its pricing |
| other shipping options that can offer logistics | | | | structure as a software offering makes it more |
| expertise at a more affordable price. | | | | affordable than paying for logistics consulting services. |
| Hiring a 3PL Provider | | | | In terms of hard numbers, research shows that |
| Hiring a 3PL provider is traditionally how shipping | | | | companies that implement logistics software can |
| companies implement logistics without paying for | | | | realize a 10 percent reduction in their annual shipping |
| fulltime logistics experts. But before your outsource | | | | costs at the end of one year. |