A 3PL distribution strategy increases the efficiency of your business

Trucking Industry

Distributing products in new territories is one of the most critical challenges companies face when planning new strategies to increase their business sales. Undoubtedly, a 3PL distribution strategy can become the best ally in your supply chain, increasing efficiency in transportation and deliveries.

Whether talking about a retail giant, an independent entrepreneur, or a small business, a solid distribution strategy can make the difference between business success and stagnation.

Timely deliveries and quality of service, reflected in the optimal condition of the products at their final destination, are fundamental pillars of business reputation. How you deliver your products and how they are perceived by your customers impacts your sales and your ability to establish long-term business relationships. That is why defining a distribution strategy with the right logistics partner is essential.

How to start the distribution process of my products?

Start by defining a budget and setting logistical strategies that align with your financial and expansion goals. How your products are distributed will depend mainly on these factors and require orderly planning.

One of the crucial decisions when defining your 3PL distribution strategy, in the beginning, is to determine if you have the logistical and financial capacity in terms of transportation units, with the required permits, insurance, and knowledge of the national and/or international logistics transportation environment to handle the distribution of your products internally, or if you will seek the support of a third party: a logistics provider, also known as 3PL, with experience in the market you want to reach, who will be in charge of managing the required permits, insurance, routes and delivery times.

What is a 3PL distribution strategy, and how can it enhance the distribution of my products?

A 3PL distribution strategy refers to outsourcing logistics and distribution services to support your operations. It covers everything from the decision of transportation solutions according to the volume and frequency of your products to the monitoring of indicators such as delivery time, transportation costs, transit time, or those you define as important for your business.

Usually, a 3PL supplies a company’s transportation and distribution needs. However, it can also acquire responsibilities such as providing the necessary regulatory documents for transporting goods and advising on compliance with the regulations of the country or territory where your products will be transported. Their role within your company’s supply chain will depend on your required services, making them flexible allies who will adjust to your ambitions and scalability.

Working with an experienced logistics partner dramatically simplifies the process of distributing goods in the United States. Partnering with a logistics company like UTB Logistics will reduce costs and ensure that your shipments meet your company’s quality standards and reach their destination safely.

6 benefits of a 3PL strategy in my product’s Supply Chain

If you’re still unsure why an outsourced logistics solution is the best option for your company, read on to explore how this solution can transform your supply chain and boost your business growth in the U.S. market.

1. Turnaround times

You’ll have access to an extensive network of carriers and shippers who will constantly ensure that your delivery times are optimal, as they’ll be prepared to navigate any obstacles that may come their way, including market fluctuations, supply chain variations, as well as supply disruptions, and demand surges.

Working with a company with a good distribution strategy can be the difference between a two-day and one-week delivery or between an excellent load and a completely ruined one.

2. Large-scale shipments

Expanding your operations globally can be a complex challenge, requiring extensive planning. A third-party logistics company can handle key logistical aspects that help you reach new territories.

Your logistics partner will also ensure the efficiency of your operations, ensuring that the distribution of your goods is carried out as planned while effectively managing your financial resources and budget.

In addition, you will have a vast network of contacts, as its network of carriers extends across several countries and modes of transport.

3. Optimize costs

Outsourced logistics companies specialize in integrated supply chain management, which allows them to expand a broader and more diversified network of contacts and resources than most companies would typically be able to afford if they were to manage their supply chain themselves. This extensive network allows them to establish strong relationships within the logistics industry, giving them greater bargaining power with transportation providers and other business partners. Thanks to these exclusive relationships and their ability to negotiate volume discounts, 3PLs can offer more competitive rates, which translates into significant savings for your company in terms of logistics costs, improving the profitability and efficiency of your operations.

By collaborating with a 3PL, you will avoid making significant investments in logistics infrastructure. These companies have many resources, including warehousing space, trained personnel, and tracking technology. The advantage is that these solutions are more cost-effective than developing these functions in-house or acquiring them on your own. You reduce upfront investment costs and can focus these resources on critical areas of your business while reaping the benefits of a robust and efficient logistics infrastructure provided by a 3PL.

4. Increased expertise

From inventory management to transportation route optimization, a 3PL works tirelessly to find innovative solutions that drive efficiency and reduce costs. You will save time while navigating the intricate world of logistics, and they will be your best ally when you want to expand your operations, as a 3PL will understand the market and provide you with step-by-step strategies to test new territories, new services, or simply to give you the security you need in your distribution operations.

5. Flexibility and stability

Working with a logistics outsourcing company is a wise investment and a strategic decision that can boost your company’s growth and profitability. Outsourcing these functions allows you to scale and adjust your operations according to your company’s revenues, thus avoiding the fixed costs associated with in-house logistics management. You no longer have to worry about maintaining truck fleets, staff salaries, or acquiring warehouse space, allowing you to focus on what really matters: growing your business and meeting your customers’ needs. 

6. Increased safety for your cargo

Transporting heavy, toxic, or oversized products, as well as unusual shapes, represents a challenge when you do not have varied logistics services that adapt to the specific needs of each load. It is crucial to have the expertise and professionalism necessary to ensure the safe and efficient transportation of any goods.

With a 3PL company by your side, you can navigate the marketplace knowing that your cargo will be protected and its unique characteristics will not hinder its transportation.

3PL strategies: FTL or LTL to distribute my products?

If you already have the certainty of partnering with a 3PL logistics provider, the next step is to define the mode of transportation that best suits your business: LTL or FTL, which is the best option for a start-up or small company looking to maximize resources while expanding its market reach? How can my company reduce logistics costs without compromising the quality and efficiency of its deliveries?

Less-than-truckload (LTL), or consolidated freight, may become the most cost-effective mode of transportation if your loads are not yet large enough to occupy a full truckload. 

Companies can significantly reduce transportation costs by taking advantage of the option to share truck space with other cargo from different sources. This approach eliminates the need to pay for a truck’s full capacity, making transportation more affordable for those with smaller load volumes. In addition, by opting for LTL, companies can take advantage of lower rates per unit load compared to full truckload transportation (FTL), further optimizing logistics costs.

Bottom line, 

A 3PL distribution strategy can boost your operations and increase your business sales. Make sure your logistics provider advises you in the best possible way, allowing you to choose the transportation solution that best suits the needs of your products and your budget. Remember that LTL offers a cost-effective and scalable solution for growing companies or those with more modest distribution needs, allowing them to compete more effectively in the marketplace while maintaining tight control over transportation expenses.

More Articles

Relationship Matter To Us