Why do companies use outsourced 3PL services?

Shippers, such as food processors or consumer packaged goods (CPG) manufacturers, frequently outsource their operational logistics to third-party logistics providers (3PLs) if they have:

  • Outgrown their internal capabilities
  • Realized these services are not where they offer a competitive advantage
  • Feel they have better uses for limited resources (such as people and capital)

Outsourced warehousing, transportation, and order fulfillment mean manufacturers do not have to invest in additional or expanded warehousing, staff, or systems to scale their growth.

Instead, 3PL providers already have the appropriate capabilities, facilities, resources, and technology to help their clients decrease costs, boost operational efficiency, streamline their order fulfillment and get their finished goods onto retail or wholesale shelves in time.