Read Time: 4 min.
2020 was a year of disruptions for just about every industry. In logistics, however, the volatility looked a little different. Faced with a massive surge in demand and a regulatory framework that seemed to change almost daily, some companies benefitted while others struggled to rise to the occasion.
But through it all, one truth emerged: a partnership with a strategic third-party logistics provider gives shippers a distinct advantage, even in the face of uncertainty. Here’s why.
The Benefits Of Having A Third-Party Logistics Partner
1. Flexibility
Carrier capacity was impacted significantly in 2020, especially at the beginning of the pandemic. Air departures were reduced, ports suffered delays, and many ocean routes were canceled. Companies that lost supply chain flexibility were sometimes slow to adjust, but any that were partnered with a third-party logistics provider quickly transitioned operations without disruption.
2. Transportation Mode Options
When we experience a critical increase in demand for certain goods—as we saw with PPE last year—we are forced to find solutions quickly. Suppliers that relied on slower modes of transportation scrambled to meet the need but then faced the realities of increased demand and reduced capacities. A third-party logistics provider has the relationships and flexibility to make those adjustments, ensuring your network continues to deliver.
3. Navigating Regulatory Changes
Local, regional, national, and international shipping regulations changed in 2020. Maintaining compliance became a full-time job, on top of all the other challenges. While the situation has settled considerably, the changes are expected to continue.
2021 Supply Chain Trends To Start Practicing Now
To avoid delays and stay compliant with regulatory frameworks, working with a third-party logistics provider is your best strategy. Their experience in this notoriously nuanced legal zone is your distinct advantage.
4. Save Time and Money
Rapid change requires a rapid response. But to pivot quickly, you need to have the infrastructure in place, and for many shippers, this is not an easy task. When you partner with a third-party logistics provider, you avoid delays and shipping mishaps and can allocate your resources where it matters.
5. Ongoing Industry Expertise
Choose a logistics provider whose reputation and results speak for themselves. As specialists, they have deep and lasting relationships with carriers and governing bodies, ensuring your goods get to their destination as expected.
6. Continuous Optimization
New techniques and technologies offer opportunities to optimize the supply chain through every point of contact. Route optimization, carrier optimization, and load optimization are all critical strategies, and third-party providers are continually looking for ways to improve. Essentially, it’s like having your own logistics department because they always have your success and profitability top-of-mind.
Final Thoughts
Every industry has been taken to task this past year, but organizations that prioritize flexibility will continue to grow, despite the challenges. The world’s most successful companies are ones that surround themselves with critical expertise. Due to the uncertainty caused by the global pandemic, it’s essential to start 2021 with the right partners. Reach out today to learn how DTS World Cargo completes your team.
