Logistics Outsourcing

Purpose: Outsource to improve efficiency, reduce costs, and focus on core competencies.

The 3PL industry has grown nearly 3-times faster than US GDP for two decades as more shippers seek the benefits of improving distribution performance, reducing costs risks, and focusing on core competencies, such as product design, engineering, manufacturing, and marketing,

Key Benefits from Logistics Outsourcing include:

Focus on Core Competencies: Dedicate scarce resources to the core business & competitive differentiators.
Reduce Logistics Costs: Take advantage of 3PL’s economies of scale to lower total logistics costs.
Gain Visibility: Access real-time order and inventory status, historical data, and visibility tools.
Improve Performance: Outsource to logistics experts with demonstrated operational excellence.
Fast, Scalable Expansion: Rapidly expand geographic scope with 3PLs in key markets.
Avoid Logistics IT Systems Upgrades & Technology: Leverage a 3PL’s investment in leading IT.
Minimize CapEx & Labor: Shift investment in headcount, facilities, and equipment to a 3PL.

Approach: Leverage 3PLR’s robust outsourcing framework, tools, and in-depth knowledge of 3PLs.

Finding the Right 3PL: It is challenging to find the right 3PL one with the right service capabilities and in the right locations with the right capacities. There’s a right 3PL size that fits each shipper, one that is large enough to offer better economies of scale and capabilities, but not so large that the shipper is a comparatively less important account. 3PLR has vast contacts and expertise in finding the right 3PL.

Robust Methodology & Toolset for Distribution Outsourcing: 3PLR developed and utilizes a robust methodology and proprietary tools to thoroughly understand our client’s logistics requirements, goals, and baseline costs. We assemble and share comprehensive RFP bid packets with the right 3PLs under NDAs. 3PLR’s pricing framework and evaluation tools reveal total service costs and allow clients to compare “apples to apples” for selection. Clients are supported through contract negotiation and implementation planning, and, if needed, 3PLR can facilitate 3PL implementation serving as a project manager and client advocate.

Deliverable: Turnkey outsourcing service to select the right 3PL based on competitive bids.

3PLR’s comprehensive and tested approach to logistics outsourcing and expertise choose the best 3PL with high confidence.

An efficiently executed logistics outsourcing process
Accurate baseline of logistics costs, services, and requirements
Comprehensive RFP document & NDAs for the bid
Thoroughly vetted group of qualified 3PL service providers invited
Equalized “apples to apples” comparison of RFP responses
Facilitated working sessions to thoroughly evaluate 3PLs and bids
High confidence in selection results
Support for contract negotiation and award
Roadmap for 3PL implementation
Available support resources for implementation

Ready to optimize your strategy?

Contact 3PLR or schedule a call to discuss your company’s needs and find the right solution to optimize your operations.

Case Studies

Logistics Outsourcing | Case Study 1

Outsource Nationwide Retail/ CPG Distribution – A $260M CPG apparel company was unhappy with a poorly constructed and punitive service agreement and rising costs of an incumbent warehousing 3PL that was operating its only nationwide distribution center. The client sought help to prepare a Request for Proposal (RFP) to replace the 3PL

Logistics Outsourcing | Case Study 2

After-Market Automotive Distribution Outsourcing – A $280M automotive aftermarket accessories manufacturer and distributor was suffering with overflowing, overburdened and failing nationwide distribution center.