Third Party Logistics, or 3PL, is a service that is experiencing incredible growth. According to a study by Armstrong and Associates, approximately 400 of the Fortune 500 companies use 3PL, and nearly all of the Fortune 100 companies use a 3PL company in some capacity to meet their logistics needs. So what is 3PL? Is it something your company should consider using? Let's take a look at what 3PL is and why it is a service your company might need.

Beginning in the 1970’s and continuing as a growing trend throughout the 80’s and 90’s, many retailers and manufacturers expanded their operations to include logistics; seeking to manage costs by controlling inventory along the entire length of their supply chains.

Today, tech-savvy e-commerce providers like Amazon can far outpace the speed at which most retailers and manufacturers can move their goods to the point of sale. It is has become very difficult for companies to effectively compete with e-commerce providers plus manage their payroll and benefits-related expenses, as well as cope with rising fuel costs. To remain competitive, many businesses have opted to cut overhead and streamline operations by divesting themselves of their logistics operations and outsourcing freight-handling to third-party logistics (3PL) providers.

This is a fascinating period for the trucking industry. Momentum is undeniably building in domestic manufacturing. Who will drive those manufactured goods remains to be seen; driverless trucks promise to change the dynamics of the industry in almost unimaginable ways. Across the trucking world, change is right around the corner... except for the literal corners.

Beginning in the 1970’s and continuing as a growing trend throughout the 80’s and 90’s, many retailers and manufacturers expanded their operations to include logistics; seeking to manage costs by controlling inventory along the entire length of their supply chains.

Today, tech-savvy e-commerce providers like Amazon can far outpace the speed at which most retailers and manufacturers can move their goods to the point of sale. It is has become very difficult for companies to effectively compete with e-commerce providers plus manage their payroll and benefits-related expenses, as well as cope with rising fuel costs. To remain competitive, many businesses have opted to cut overhead and streamline operations by divesting themselves of their logistics operations and outsourcing freight-handling to third-party logistics (3PL) providers.

Port City Logistics is saving money every year by switching to energy efficient LED lighting!

Port City Logistics owns and manages nearly 2 million square feet of warehouse facilities in the heart of the Savannah port system. One of their facilities used to store food products had been converted from area bulk storage to aisle racking. They discovered that the lighting in their 180,000-square foot building was in need of an upgrade. The challenge was to adequately and economically light 23 aisles with food products stacked to  the ceiling. There were too few lights with many of the existing lights either totally blocked or poorly spaced.

The supply chain model of the 1970s mainly involved local suppliers and physical retail stores, where goods went straight from the suppliers to the retail stores. In the 1980s, retail distribution centers popped up. Suppliers shipped goods to the centers which functioned much like airline hubs, and retailers then distributed goods to individual stores in the region. Imported goods were added to the mix in the 1990s, which created the need for retail import centers.

It is estimated that domestic freight volumes will have increased by 70% over 1998 volume figures by the year 2020, which will not be possible to efficiently process and ship using our current level of physical capacity. It is crucial to the future economy of our country that the transportation industry, including the Savannah transportation industry, find ways to more efficiency move freight throughout, into, and out of the U.S.

Weak links in your supply chain can create many negative consequences when it comes to your bottom line. You need to know how to quickly identify and eradicate weak links to keep your business operating at its optimum potential.

How Much Is Lost or Damaged Freight Really Costing You?

Lost cargo is a serious problem that can severely affect your business' bottom line. Across the globe, cargo loss is estimated to cost more than $50 billion annually. However, this number can be slightly misleading, and in fact, most shippers tend to vastly underestimate the amount that lost or damaged cargo costs them each year.