Why Do Shippers Turn to 3PLs to Manage Their Supply Chain?

Posted by Port City Logistics on Mar 30, 2023 1:52:38 PM

Third party logistics providers (3PLs) play a crucial role in managing the operations and arranging the transportation for tens of thousands of shippers,freight forwarders, and major manufacturers found globally. According to a recent market report published last week, in 2022, the total 3PL market in the United States was estimated at over $230 billion; that same study forecasts the freight business to reach a market size of $488 billion by 2030. These numbers are staggering and indicate just how important  transportation service providers are in connecting global consumers to the essential and non-essential goods that we all desire on an everyday basis. But not all 3PLs are the same, of course. Most freight brokerages are simply a rate and a truck, and fingers crossed they actually have a truck in hand that doesn’t have a ton of freightguards and a poor service record.

The more experienced and modern 3PLs available for shippers are the fully-integrated single source logistics companies that can help manage a shipper’s entire supply chain. Not only can they help with transportation solutions like  port drayage, LTL, port-to-door, warehousing, and transloading, but they can also streamline communication, use technologies that help with route optimization, and provide the logistical experience and solutions to avoid some of the common problems that shippers face when it comes to their supply chain. This article takes a look at some of the reasons why shippers are turning to 3PLs to support their supply chain.

Why Do Shippers Use 3PLs?

Most shippers and retailers lack the capital required to purchase, maintain, and manage their own fleet of assets and equipment necessary to operate their own supply chain. They also might be hesitant to invest millions of dollars to build their own brick and mortar warehouse and transloading facilities, hire and train a team of professional warehouse staff, and have the labor necessary to manage all of these different processes at once. Instead, most shippers outsource services depending on their needs. At the most basic level, shippers look for 3PLs to source capacity to deliver their commodities somewhere else. Whether you are a small, mid-market, or enterprise company, 3PLs can provide added value depending on the unique operational requirements that your company needs.

What are Some of the Services that Shippers Depend on from 3PLs?

When shippers partner with a single source logistics provider, they can integrate their entire transportation network with a single provider to help ensure that every step in a load’s journey is properly handled, managed, inventoried, communicated, and delivered correctly. Single source providers own and manage their own equipment and fleet of trucks, delivering just-in-time capacity when shippers need it most. The other benefit is that they can tap into their domestic network of carefully vetted carriers to provide extra capacity during moments of seasonal volatility and market fluctuations.

Port Drayage

Most global shippers depend on port drayage to connect their commodities to national markets. Some of the busiest ports in the world are located along the eastern coasts of the United States, where companies like Port City Logistics handles a great quantity of the containerized ocean freight each day. At the Port of Savannah, for example, Port City Logistics moves more than 90,000 containers a year. As the preferred carrier or hundreds of regional shippers and global freight forwarders, Port City Logistics covers drayage service for all major North American ports and also offers:

  • Transloading
  • Year-round dedicated capacity
  • TWIC-certified and bonded drivers
  • Owns their own secure stack yards
  • Provides specialized and over-sized transport
  • Port-to-Door service

Dedicated Freight Solutions

The key advantage of partnering with a single source logistics provider like Port City Logistics, is having dedicated capacity year-round for all the volume your company ships. Port City Logistics manages their own fleet of company drivers and equipment, helping shippers connect their products to local and regional markets, but also servicing long-haul, and final-mile service when needed. Port City Logistics provides:

  • Full Truck Load service for reefer, dry van, and flatbed loads
  • Less Than Truckload and partial service
  • Specialized transport
  • Hazmat
  • Spot Capacity
  • Cross-border freight solutions

Transloading, Warehouse Storage, and Distribution Service

Customers looking to quickly deliver their products and maximize their profit margins often need value-added services in addition to over the road transportation. One of the most crucial services that a single source logistics provider offers customers is with transloading. And having a provider that owns and manages their own brick and mortar transload and warehouse facilities saves customers time and the hassle that often comes with aligning multiple providers who often outsource those services to begin with. Port City Logistics offers 11 different warehouse facilities that help customers with things like:

  • Cross-docking
  • Bulk Transfer
  • Pallet Wrapping and Palletizing Services
  • Pick and Pack
  • WMS Digital Inventory Management
  • Ramped Doors
  • Leveler Loading Docks for All Equipment Sizes
  • 24-hour security

Shippers Depend on Port City Logistics as Their Primary 3PL Provider

Logistics managers know there are thousands of 3PLs available to choose from. Their email boxes and daily phone calls with solicitations for service are probably enough to drive regular people crazy. But when it comes to servicing a supply chain professionally and without hassle, most shippers turn to Port City Logistics as their primary carrier for their transportation needs. Port City Logistics is built to provide services that cater specifically to the unique operational needs of their customers. From port drayage and transloading, to warehouse and fulfillment, to over the road transportation and just-in-time delivery, Port City Logistics provides the peace and mind shippers deserve to handle their freight. Contact an Expert at Port City Logistics today!

Topics: 3PL Service