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4 Reasons You Should Outsource Logistics to a 3PL



Picture of a truck with text: Yes, You Need a 3PL

4 minute read

 
 

The Benefits of Working with a 3PL for Outsourced Logistics

The supply chain becomes more complicated every day. Technology, visibility, and navigating the risk inherent in working with a variety of carriers is a full-time job. Here at AM Transport Services, we’ve found the manufacturers and distributors we work with prefer to spend their valuable time focusing on their business and the meaningful work that will help them grow.

Think about it for a minute. You are a manufacturing executive hired (and paid) to make high-level decisions and implement the strategies to grow your company. At your pay grade, it doesn’t make sense for you to dabble in logistics.

Most companies try to handle their own logistics departments when they begin. They believe that in-house is better than hiring work done, but they aren’t taking into account the cost and time benefits of outsourcing logistics services to an experienced 3PL.

Larger companies on the other hand, know the value of outsourcing their logistics services. That’s why 90% of Fortune 500 companies work with third party logistics (3PL) providers for freight services. Here’s the difference, large companies tend to work with the large 3PLs instead of smaller freight brokers who invest in the sort of relationships that provide real benefit to smaller manufacturers and distributors.

 

4 Ways Working with a 3PL like AMT Saves You Money

 

Extensive Network

3PLs drive cost savings for the manufacturers and distributors they work with. With our extensive network, you capitalize on the exclusive relationships we have all along the supply chain. These relationships give us greater negotiating power so you get the best rate.  At the same time, a 3PLs extensive network provides you the flexibility you need especially when you are in a growth phase and your shipping needs fluctuate. Here at AM Transport, we are able to adapt to both high and low order demands without sacrificing the cost efficiency you depend on.

 

Technology

When you outsource your logistics services to AM Transport Services, you avoid the increased (and ever-changing) costs associated with both purchasing and then using advanced logistics technology. If your carriers do not provide you with tracking, you are probably chasing loads down and wasting time and money trying to make sure your freight picks up and delivers on time. Manufacturers who work with AMT, enjoy the 100% tracking we provide. We use a high touch model that keeps us in touch with your freight from pickup to delivery.

And what about transportation management systems? Our TMS is powered by Salesforce. It’s flexible, secure, and accessible. Fully integratable and customizable, our system provides real-time visibility into shipments. With this data, our experienced team members can shave money and time from your bottom line.

Our online portal provides customers with a one-stop-shop for their shipments. From invoices and BOLs to customized reports to instant messaging and LTL self-service, our online portal is state-of-the-art.

 

Decreased Risk

Moving freight through a 3PL rather than dealing with a carrier directly reduces a shipper’s liability in a variety of ways.

  • Negligent hire–shipper is removed from directly contracting a motor carrier when using a 3PL.
  • Vicarious liability–shipper isn’t in direct control of the driver, and in the case of an accident this is important in proving that there isn’t an employee/employer relationship which could prove liability for the shipper.
  • More cargo insurance–when secured through a freight brokerage or 3PL, cargo insurance is often broader and doesn’t contain as many exclusions as motor truck cargo policies.
  • Vetting, on boarding, and contracting motor carriers–when you outsource these functions to a 3PL, your internal employee expense is decreased.

 

Customer Service

Among respondents to the 24th Annual Third-Party Logistics Study, 83% of shippers report that working with a 3PL has improved their services to their “ultimate customers.” What does this mean? It means when you work with AM Transport, we take care of the big and small details. We make sure carriers are paid quickly, and we make sure customers are informed and ready for both pickups and deliveries. The team at AM Transport Services, understands the value of communication. To that end, we answer our own phones. You and your customers will never reach an answering service. You’ll never have to punch your way through a phone tree trying to reach that elusive someone who knows where your load is. We are available 24/7 365 days a year. We simply do not fail. It’s not in our DNA. Our small business depends on relationships, so we make sure that you and your customers are in the know, every step of the way.

 

Work with a 3PL for outsourced logistics services.

Whatever your logistics needs, the team at AM Transport Services is here to help. We’ve been in the transportation industry for 30 years. Manufacturers and distributors who work with us, gain the full power of our unparalleled experience and knowledge of the freight business. Now’s the time to take your company to the next level. Schedule a call with AM Transport Services, and begin saving money and time as you take your business to the next level.

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