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Frequently Asked Questions about 3PL's
What is 3PL?
3PL is an acronym for Third Party Logistics. Utilizing a 3PL is
an efficient, cost effective way to logistically improve bottom
line profits.
Why use a 3PL?
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Gain control of expenses and inventory
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Realize a greater degree of accountability
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Reduce capital expenditures
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Eliminate substantial overhead expense
Shrink your investment in resources
You're aware that today's business environment is not as
predictable--requiring less fixed costs and more opportunities
to outsource.
Using an experienced 3PL to manage your logistics functions
will allow you to focus on other areas that will build the
company and increase revenue. What can using a 3PL do for my company?
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Cost and Inventory Control
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Flexibility | Variable Solutions
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Advances in Technology
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Labor Efficiency
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Specialized Storage
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Tailor made solutions for your specific needs
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Continuous account analysis to help you stay competitive
For more information on these ideas, contact
Scott Carr or Les Walls.
Did you know?
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The most frequently outsourced services are warehousing
and transportation
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Performance and cost are the most important factors for
selecting and evaluating 3PL's according to suppliers
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Use of 3PL's has resulted on average: 11.8% reduction in
logistics costs; 24.6% reduction of logistics assets; 8.2%
reduction in overall inventories; and order cycle time has
been reduced from 7.1 to 3.9 days.
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For compensation, transaction-based fees were used 75% of
the time. Some vendors chose flat-rate pricing either alone or
in conjunction with other rate structures while others used
cost-plus arrangements as part of their rate configuration.
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Internet ordering is important to more than half of
vendors surveyed.
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