September 26, 2019

Supply chain: The power of shipper & 3PL relationships

Businesses who ship products or materials on a regular basis need someone running their supply chain operations. Most companies have someone managing their inventory and shipping and receiving operations. However, these operations can run smoother and more efficient if the shippers employ a third-party logistics company to handle the bulk of their supply chain management.

The power of a shipper and 3PL relationship can make companies level up in their operations and customer satisfaction. Here are the benefits of a productive shipper/3PL relationship.

Communication is key

One of the best things that shippers and 3PLs can do for their relationship is to set expectations. Open and extended communication can help prevent any confusion about the relationship moving forward and helps mitigate issues that arise later.

Some 3PLs and shippers have relationships that result in shouting matches. However, keeping a level head and understanding that the supply chain is ever-evolving and changes on a dime can save you from burning a bridge. 

Saving money and time

A good third-party logistics rep will be able to provide shippers with value in more ways than one. The biggest one, however, is in their ROI on using you as their third-party solution.

Don't worry, because experienced logistics pros can begin showing the shipper savings in small increments almost immediately. To add to that, Shipwell utilizes our native supply chain technology to provide our 3PL department with the most automated way possible to book and ship products.

Best of all, having logistics pros locking in tracking and shipping for shippers allows them to keep shipping staff low and still maintain a high level of output.

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Access other relationships and expertise

Secondly, the resources and expertise a 3PL can provide for a shipper can be invaluable.

Having someone with in-depth market trend history knowledge can save shippers thousands of dollars a year on their shipping spend. Shippers can unlock the real-world experience that 3PLs have built over the years working with hundreds of different companies across different industries. 

These 3PLs will also have access to technologies like Shipwell that skyrocket their efficiency so they can accept more shipments from shippers and make room in their production and inventory processes.

Aside from that, the relationships with carriers that 3PLs develop over years of working with them helps lock-in consistent best-in-class service at good rates.

Where you are weak, they are strong

To add to that, the time saved from using 3PLs can help companies focus their efforts into the other parts of their companies that need growth. 

No need to worry about shipment statuses because 3PLs will take care of the dirty work so shippers don't have to. That reliable work will also be consistent for shippers to rely on for the future.

This relationship becomes the most powerful when disaster strikes. Logistics pros will have to do some needlepoint precision on getting carriers to move shipments during natural disasters or shortages and shippers need to be by their side, potentially paying higher prices to get shipments out.

While 3PLs take care of shippers, they are also maintaining their relationships with carriers. And during those disasters, they need to provide carriers with fair rates so they continue to broker great rates with them throughout the rest of the year so shippers save money on their bottom line.

Want to see how our platform can transform your shipper and 3PL relationship? Click below to begin your journey to saving more on your bottom line.

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