Cost vs. Service Levels: What Smart Shippers Know
2 minute read
Partner With a 3PL for Higher Service Level.
Did you know that, according to a 2017 report conducted by Armstrong and Associates, a whopping 90% of domestic Fortune 500 companies rely on third-party logistics (3PL) providers for logistics and supply chain services?
There are lots of great reasons for partnering with a 3PL including logistics knowledge and experience, access to a core carrier base, and the strong long-term relationships 3PLs cultivate with professionals all along the supply chain.
Good 3PLs can provide innovative technologies, and that’s important too. In the ever-expanding and changing logistics ecosystem, technologies are changing and improving nearly daily. It’s almost impossible for shippers to stay up-to-date without a good transportation partner.
When we talk about the benefits of partnering with a 3PL like AM Transport Services, we are talking about a better menu of services and a higher-than-normal service level.
So What is Cost vs. Service Level?
Service Level is a measurement of the efficiency and performance of a system. But services vary as do costs. It’s important for shippers to understand exactly what services they require and what service level they are willing to pay for when shopping for a good third-party logistics provider. When shippers try to balance the need for cost-efficient shipping with the necessity of high service levels, we call the equation cost vs. service level.
Know what services you want and/or need!
Shippers may desire a variety of services including:
- Logistics Consulting
- Expedited Shipping Services
- Same and Next Day Pickup and Delivery
- Worry-Free Scheduling
- Truckload Optimization
- Tracking and Visibility
- Full-service Freight Management
- Multi-modal Transportation Options
- Specialized Equipment
A shipper’s unique needs can require a delicate balancing act between necessary services and what a shipper can afford in terms of cost.
That’s why at AM Transport Services, we offer all of the above services and more. Our 30 years in the freight industry translates into benefits for our logistics partners. We’ve cultivated relationships with carriers, consignees, warehousing and logistics managers all along the supply chain. When you couple that with our team members’ devotion to excellent customer service, you have a recipe for success. Yours! After all, we don’t succeed unless our customers do.
Smart shippers know that when balancing cost vs. service level at AM Transport, the service far outweighs the cost. We work hard to make sure every shipment delivers on-time. And we’re available 24/7–that’s 365 days a year. You always reach a person. That’s service you can count on!