For many businesses, regardless of their size, shipping and transportation can be a logistical nightmare. That’s why more and more companies are choosing third party logistics or 3PL to warehouse and move their products across long distances. These companies can handle all the commercial logistics, including warehousing and distribution services. Their services can be especially valuable for companies moving goods across the vast distances of western Canada.
What is 3PL?
While most goods in the U.S.-Canada trade are moved by trucks, the logistics can be difficult for businesses to handle on their own. Given the scale of the shipments and the distances they have to travel, it makes sense to outsource warehousing and distribution to the professionals who really know the space. About two thirds of all U.S.-Canada trade is moved by trucks, including more than 80% of all U.S. exports to Canada.
For many businesses that do not include logistics and shipping as a core function, 3PL can be the solution to getting their products to the retailers or consumers. 3PL has grown tremendously since the 1970s, and saw another major expansion with the rise of e-commerce. In fact it’s estimated that some 86% of Fortune 500 companies now outsource their logistics.
How can third party logistics help your business?
If you’re thinking of using 3PL, it’s a good idea to learn from the experience of other companies and not leave it until too late. Many business have suffered because they waited too long to set up their 3PL services, leaving orders unfulfilled and customers disappointed. So if your business is experiencing rapid growth, this is a good time to hand over this important task to the professionals.
As your business grows, you may start running out of time for order fulfillment and even warehouse space for your products. 3PL services will take over these tasks, with their network of carriers and warehouses. This means that you can continue to focus on branding and growing your business, without a logistics bottleneck to slow you down.
Logistics in Canada
Especially if you ship goods to and across Canada, hiring domestic 3PL services can give you an edge. Around 80% of all U.S. goods shipped to Canada travel by truck. Outsourcing your logistics will give you access to their carriers and warehouses. You can rely on their experience and knowledge of the local regulations.
Hiring a Canadian 3PL can help you limit overheads and move into new territory. They will handle all documentation, customs, duties, and other matters. This can ease your transition and connection to the Canadian market.
When businesses expand in volume and in terms of territory, shipping and fulfillment is one of the bottlenecks they encounter. Third party logistics services have developed to meet this need, and give the business access to a professional transportation and shipping network with carriers and warehouses. This gives your business room to grow without being hampered by limitations in fulfillment and shipping.