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Leverage the Logistics Pros When it comes to logistics, outsourcing to a third-party provider can save money, cut time, and reduce workload. By Ari Kaufman
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indful business owners quickly realize fulfilling orders is an indispensable part of their operations. With the growth and success of a given business, it’s likely that fulfilling customer orders in-house does not always remain feasible. According to the International Organization for Standardization — a non-government organization that has long measured and developed international standards for various industries — companies can reduce their costs roughly 15 percent when they outsource. With the changing world of e-commerce,
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companies often do not have the capital or time needed to grow their businesses. That is where third-party logistics (3PL) comes into play. Third-party logistics is essentially the outsourcing of e-commerce logistics processes to a third-party business. This broad term can include a number of logistics tasks, including: Transportation Services: The shipping and trucking of freight on behalf of another company. Warehousing and Distribution: Storage, inventory management, order fulfillment
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and cross-docking, which involves moving product from one mode of transportation to another. Order Fulfillment: Picking and packing, e-commerce fulfillment and retail fulfillment services. Supply Chain Management: Managing vendor relations, procurement services and demand planning. Value-Added Services: Packing and labeling, kitting and assembly, and product returns management services.
Also included in 3PL are technology solutions, reverse logistics, and freight brokerage. Using 3PL providers generally allows companies to accomplish more each day, because businesses will possess the tools and infrastructure to automate their retail order fulfillment. Some businesses began trending toward outsourcing their inbound and outbound logistical services to third parties a half-century ago, but with the beginning of e-commerce in the late 1990s — and its ensuing rapid growth — 3PL has become omnipresent, and they have expanded services. Located in St. Joseph, Brenny Transportation has been a third-party company since its beginning 27 years ago. “We help companies find quick and safe solutions to move their freight. We want to make sure that we are available when customers need us and can get their freight moved when they need it,” Business Development Specialist Shantell Smith said. “We have a vetting process before using any other carrier to move your product to ensure that we work with trustworthy companies.” Smith explained how thirdparty logistics companies like Brenny help provide additional access to various trailers to move freight quickly. “If a customer calls and needs a load moved tomorrow, we can find