Analyst Insight: The pandemic and recent supply chain disruptions have affected small to medium-sized companies more than bigger enterprises. This is because smaller businesses have fewer alternatives and can't afford many tools that streamline operations and improve efficiencies. These businesses have found that outsourcing their logistics operations can help them to become more competitive against bigger enterprises and thrive.
According to the 2022 Third Party Logistics Industry Report, supply chain disruptions cost $228 million in 2021. While small companies often outsource their payroll, accounting, HR and marketing operations, only some understand the benefits of outsourcing their logistics operations. By outsourcing to a 3PL, small companies can “help their customers manage supply chain disruptions by offering visibility into inventory, real-time access to data for better supply chain transparency, seamless workflows, and insights into future challenges or issues,” per the 3PL report.
Outsourcing logistics operations helps small to mid-size businesses to:
Outlook: For small to mid-sized companies, it’s vital to outsource logistics operations to qualified and experienced 3PLs, helping the small business to streamline transportation processes and operations. With streamlined operations, the small business reduces the complexity of procedures, allowing it to focus on crucial aspects of the organization. Working with a 3PL eliminates the need to add more labor and invest in training and new equipment.
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