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Welcome to Sky Land Logistics
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What a 3PL? A 3PL (Third Party Logistics Company) is a non-asset based (does not own Trucks or equipment) to help you reduce costs, risks and save time and cost of implementing your strategy the logistics. Here's how they do it
Huge savings rate ... not!
In general, with a 3PL will see the rates are competitive with what you are paying. Do not expect big rate reductions simply because you decided to investigate a 3PL. Rates are governed more by market prices and less about the cost. Actually, if you collect your laneways rates for a while then you probably know much better what the market price is more than a 3PL company. Should be sharing your rate your 3PL information so that they can work with you to put together a rate of neutral package for you. You may be wondering, if a 3PL can not get a savings rate, then what are the benefits? The benefits come from the mode of transfer, order tracking efficiency, time savings, consolidations, improved carrier management, shipment visibility and reducing risk
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Transfer mode
Are you sending a lot of regular LTL? By working with a 3PL can leverage their computer tracking systems to observe the patterns that would be candidates for consolidation truckload shipments. For example, if you are shipping twice a week 12 pallets from Chicago to Toronto, you would save considerable money by sending a full truck load once a week. While it sounds simple, these opportunities exist in your data transmission. 3PL have software to find such opportunities and help you take advantage of it. Any time you can transfer from LTL truckload, your cost per pound is reduced.
Order tracking
Some times you pay for expedited shipping because something does not go as planned? The problem with many software packages that use shippers is that they end their shipping docks. As soon as the truck is full, the order is complete. you know what's really important is a happy customer receives your product on time. 3PL's with software designed to manage your shipment from your dock to your customers. Many web access dashboard’ offers where you can view the status of any luggage you have to go with a simple screen. Not only can you track all your shipments, but you can do it from anywhere. Since most of the dashboard of web based, you can do it from home, your Blackberry, even though the golf course!
Time Savings
Do you have a routing guide? Have you spent a lot of time trying to implement it in all your shipping locations? You must know the struggle it is. On top of that, though people are following it, have you ever considered that all the time you spend calling people carrier on the list to find someone who is available when you need them? There are huge time wasters here. Should not your customer service people are servicing your customers instead of looking for Trucks? I think you know where this is going. A 3PL should take responsibility. You will always have a truck when you need one. The 3PL will take brunt of coordination between your plants, suppliers and customers, so your customer service people can do what their best to.... Servicing your customers.... and taking orders!
Improved Carrier Management
Do you have a myriad of contracts, assessorial charges, fuel surcharge tables, insurances, licenses, and more to keep on top of? If your like most professional transportation, you've got piles of this stuff! 3PL's software generally is designed to keep the top of all this stuff. Plus, they can help you negotiated standardized assessorial and fuel surcharges. This will not only save you time filing and collecting all this data, but think about saving time on your invoice approval process.
Visibility Package
Have you ever thought about how much it would cost to implement a software system to help monitor an manage your shipments? It can cost thousands, even hundreds of thousands of dollars to purchase, implement and maintain. A 3PL can leverage their technology for free. That's right free. Most 3PL can customize their software to your needs. You can get all of shipment visibility and reporting you need at no extra charge.
Risk Reduction
Many people do not consider the risks that they when they load a shipment on a truck. Carriers are safe? Was his insurance up to date? Traffic managers in the world today to consider these factors. Recently shippers court proceedings are held without care and having to pay large settlements to people injured in trucking accidents because the shipper did not conduct "due diligence" in their chosen carrier ship shipment. It was scary. In many organizations carrier selection is given to people in customer service, personnel or warehouse loading Trucks. This is a recipe for disaster. There are very real danger here and the risks must be managed and minimized. A 3PL is the system in place to collect insurances from the carrier before they expire. To verify licenses and check out the carrier's safety rating periods. You can have it all done for free by using a 3PL.
A nutshell: Why you need to shift to a 3PL
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