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For any business initiative to succeed, you need to have all stakeholders on board. Without support for your new technology, partners, or processes, the effort won’t achieve its full potential.
If you’re getting ready to implement a third-party logistics (3PL) solution, you’re about to make a quantum shift in the way you work. 3PLs are highly efficient one-stop solutions for all your logistics needs. For companies experiencing growth, it’s a way to scale quickly without taking on additional risks.
But to make it work, you’ll need to gain buy-in through every department, from the warehouse floor straight to the back office. That being said, it’s management you’ll need to engage the most. When leadership is aligned to the action, others will follow their lead, assuring a smooth transition and giving you the best chance of success.
Eight Ways to Gain Management Buy-In for 3PL
Here are a few 3PL benefits explained to help you gain management buy-in ahead of your decision to outsource:
1. Cost Reduction. A 3PL already has the technology, infrastructure, and systems to support your logistics requirements, so there’s no need to invest more time or resources to achieve your objectives. Essentially, you’ll be able to do more with less effort and expense, and that’s the goal of every business.
2. Buying Power. 3PLs manage huge volumes of freight globally, giving them significant buying power. The savings are then passed to you, improving margins even as your business grows.
3. Environmental Commitment. Because 3PLs work with multiple shipping methods, they can consolidate routes and optimize shipments for the least possible carbon impact. In addition to making your life simpler, they also strengthen your green posture!
The Ultimate Guide to Mitigating Cargo Theft Risk
Cargo theft continues to be a significant issue for shippers in all industries. In 2020 alone, losses rose about 23 percent over 2019, and it’s estimated that the global shipping industry loses between $15 and $30 billion annually because of it.
4. Predictability. When you’re dealing with a company that specializes in logistics, you have the benefit of proven systems and processes. Consistency equals peace of mind – and isn’t that what everybody wants?
5. Accountability. A 3PL provides you with detailed tracking information and alerts, so you’ll know where your cargo is at all times. You’ll enjoy complete transparency and improved peace of mind because there is always somebody looking out for your best interests.
6. Better Security. Your 3PL partner is well-versed with changing regulatory frameworks, customs requirements, and security. From your location to their warehouse and at every point in the journey, your assets are protected and assured through security monitoring, specialized training, and sensor-based inventory management and tracking.
7. Data-Driven Metrics. 3PLs collect data in real-time, providing you with the insights you need to make better business decisions. You’ll avoid stock-outs and overstock, prepare adequately for seasonal surges, and facilitate more accurate predictive analysis and forecasting – all of which contribute to a more efficient and profitable business model.
8. Simplified Processes. Since all 3PL logistics processes are supported by technology, you’ll eliminate human error and oversight, save time, and ensure customer satisfaction. Plus, with a more streamlined workflow, productivity improves, and employee happiness is assured.