In general, 3PLs can reduce costs by at least 10%. This is the main reason why many enterprises choose to outsourcing. With the help of 3PL's tailor made logistics plan and timely delivery, corporate inventory expenses can be reduced. Not outsourcing means extra labor cost, may face operating restrictions and unnecessary expense.
- Dedicated to the core business
Modern competition theory holds that enterprises must consolidate and expand their core business in order to gain competitive advantages, which requires enterprises to devote themselves to the development of their core business. As a result, more and more enterprises outsource their non-core businesses to specialized 3PLs.
- Reduce investment and utilize advanced technologies of 3PLs
The high efficiency of 3PLs logistics operations depends on its advanced facilities and software, with the help of 3PLs can reduce the huge investment of enterprises in this field. A survey showed that 3PLs invested a lot on logistics technology equipment, including software, communications and automated awareness systems.
- Reintegrate the supply chain
There is a growing trend for companies to outsource the whole process to 3PLs rather than just logistics. 3Pl needs to turn to process management, participate in key processes such as testing, quality assurance, inventory management through logistics management systems, and provide logistics services, so as to reduce investment for suppliers.
- Expand international business
With the acceleration of global economic integration, many companies without international marketing channels want to enter foreign markets, and international 3PLs can just help these companies to achieve their purpose of expanding their international business.