Today’s trucking industry is imaginable without a third Party Logistics services!
The trucking businesses use a third party Logistics that often is in-house (within the company) or they will outsource the 3PL services from providers that specialize in this area. But, peaty much all of the trucking companies use third party logistics!
Most of the time the trucking companies outsource logistics functions that are not core activities in their business. There are more reasons for doing that, but the main one is that the third party logistic suppliers that they are outsourcing are offering way much cheaper services then if they was going to use in-house sources for that.
It’s proven that companies that specialize in logistics are not just performing transportation and warehousing services at lower cost, but they also give superior outcomes than companies using in-house operations.
I am not saying that there are not some trucking businesses that are providing the full services on satisfactory levels. Yes, there are many companies that will just be good at everything they do, and with the right team in the beck yard they can pull the whole deal.
I guess, what I am trying to say here is that when you have a third party logistic that is outsourced, you can better focus on your primary services and then give the job to the one that know logistics the best- in this case that’s the third party logistic companies.
With that said, let’s see how a third party logistics services help in increasing and improving customers ‘ services and satisfactions.
Let’s have a look!
Third Party Logistics Services
First things first! So let me begin this with going into some details about third party logistics services and what they offer.
Additionally, Logistics service providers have main focus on both operational and technical excellence, as part of ensuring high levels of service and satisfaction.
Customers’ expect premier system solutions, and in order to excel in this market every third party logistics provider needs system solutions that provide flexibility and re-usability.
All of the logistics service providers should provide tools that demonstrate the effectiveness of your operational services.
Every good third party logistic provider should have few things in place, in order to meet the expected value to their customers including:
- Reliability of systems to meet demand;
- Visibility and control solutions which will enable a secure view of information across the extended supply chain;
- Provide you and your customers with real-time information to improve the performance of the supply chain;
- Flexibility of the systems to model different customers supply chain needs;
- Provide continuous improvement of supply chain processes;
- Leverage existing investment in systems (like transportation management systems and warehouse management systems);
- Improve labor as well as IT efficiency;
- Provide simpler and faster customer implementation and higher customer satisfaction.
Why Trucking Companies Need Third Party Logistics Providers
According to the 2017 Third-Party Logistics Study, 86% of the shippers said that using a third party logistics services helps in improving customer service.
If you can obtain high logistics service levels from third party logistics suppliers, you can drastically increase your customer’s satisfaction, that’s for sure!
86% is a high level of confidence, so obviously the third party logistics service providers are offering many advantages beside the lower cost!
Third party logistics can be a valuable ally for your organization. With their extensive resources, they will fill in the parts and pieces where you are fragile, like example:
- Call center to help handle customer issues (or 24/7 customer support to your clients)
Third Party Logistics Providers are committed to quality management. They will always try to find new and better ways to improve your operations and thrill you and your customers.
Of course, you can provide all of the services on your own (within your company), but in order to do so, you will need to invest money as well as time and expertise.
That’s why you should consider partnering with experienced and proven third party logistics providers and improve your customers’ satisfaction.
Third Party Logistics Can Help Scale And Improve Your Customers Experience
We live in a world where customer experience and satisfaction matters a lot. It should be a priority to every trucking business, in matter of fact!
We all witnessed at least once, a trucking business that fail before can give a go! In order to run successful and profitable trucking business you will need to have a good customer service while at the same time you are pulling all the strings behind the scene.
In the trucking business there is a lot more involved then just transporting stuff from point A to point B. When you take in consideration all the legal issues, insurance, maintenance, professional drivers, load boards, and what not, you will barley have a time for taking breath.
On top of that you have all the government agencies and controls like:
- Department of Transportation (DOT);
- Federal Motor Carrier Safety Administration (FMCSA);
- National Highway Traffic Safety Administration (NHTSA);
- Occupational Safety and Health Administration (OSHA);
- United States Environmental Protection Agency (EPA);
- United States Department of Labor (DOL);
- Commercial Vehicle Safety Alliance (CVSA).
Some companies can take care of all of that and more, while others will just assign the extra job to a third party logistics service providers that has many years of experience under the belt.
Keep in mind that how quickly, easily, accurately and on time your trucking company can deliver has an immeasurable impact on a customer’s perception of your business.
If you outsource your logistics to an experienced third party logistics provider, you will take an enormous task off your plate, and with that you can focus on the core aspects of your business.
Finding a reliable third party logistics partner maid just is what you need in order to provide and improve your services into ideal customer experience!
As I said earlier, about 86% of customers are willing to pay more, in order to get a better customer experience, so no need for waiting more!
No Doubt You Can Improve Customers’ Satisfaction! All You Need to Do Is to Trust the Experts!
Instead of trying to accomplish everything at once and then deliver unsatisfying results, you should give the hard work and everything related to logistics to a proven third party logistics provider.
If they are trusted by all of the other companies they serve, there have to be a good reason for that! Don’t you think?
They build their entire business model around shipping and logistics; that’s the core of their business, so no wonder why they will accomplish better scores and higher levels of customers’ satisfaction.
If you decide to go with in-house logistics, you will need to spent a lot of time training employees, or spend a lot of money on hiring already experienced pros that will position the customer support to a satisfactory levels.
On the other side, you can just reach out to the pros and hire a third party logistics company that has utilization on systems in place, best practices on shipping, dedicated staff, best-in-breed warehouse and transportation technologies, and a full-time commitment to ensuring your products are shipped as carefully, quickly, and efficiently as possible.
They definitely put more thought into the whole “logistics thing” than you have; because if issues are to arise, is their business on the line! So trust the experts and allow them to improve your customer satisfaction.
With Third Party Logistics Services you Can Give a Personalized Experience to your Clients
The third party logistics providers will work with your company, to stay on-brand and authentic with your services, regardless if we speak about certain way of packaging, shipping, or delivering.
Not everything has to have that generic look and process. Offering a customized and tailored solution makes a big difference in how the services integrate into a shipper’s overall supply chain, and with that create a unique picture to the end user.
Some third party logistics providers offer businesses the ability to brand with personalized and customized inserts as well as customized labels, shipping confirmation emails and other miscellaneous touches.
And, customers will definitely appreciate if you go out of your way to deliver the unique service tailored by their needs!
There are a lot of standard ways to integrate with customers, but customization and personalization are becoming the norm for many third party logistics providers.
The new technology that they are using provides more insight into the processes. This way the end customers’ satisfaction is guaranteed!
Your Trucking Company Can Increase Efficiency by Using Third Party Logistics
Imagine you are one of the best trucking companies in Chicago! Your main focus is transporting goods from place to place, but your main problem at the moment is finding drivers that are willing to stay on the road and do OTR trucking!
On top of all that, you have new clients that need special attention because they want things different then some of your other clients. You need to gain their trust and make them permanent customers!
Now, what you should do first? Find the OTR drivers that you desperately need, take care of your existing clients or, try to gain the trust of your new clients?
I will say all of the above is of an equal importance…But things need to be done!
Your company has a limited number of stuff for doing the entire job, and you are running out of time.
That’s way you should consider hiring a third party logistics providers that specialize in logistics and everything that your business need at the moment.
I’ve said this earlier somewhere, but because of its importance I will mention it again.
Relying on the specialization, new era of technology, as well as the expertise of the third party logistics providers, you can decrease your costs and increase your efficiencies as you scale your business.
As your business grows, your customer volume will increase and your services will expand, which require more employees, more storage space, more warehouse space and supplies, and a lot more time.
And we all know that time is money! By cutting needed time for doing stuff, you are cutting costs!
Outsourcing these aspects of your business to third party logistics can free up time from managing warehouse leases, training staff, and all of the logistics parts and pieces that come with ensuring your customers’ receive what they sign up for, in a timely manner and on a cost-effective way!
So, not only you will cut cost, but you will also ensure customers satisfaction! It is a win-win situation!
You Might Still Wonder How Do Third Party Logistics Improve Customer Satisfaction?
When you are about to start a trucking business you have no idea and clue of everything that’s involved into running it. You might thing that you’ve covered everything and you are good to go, but believe me when I am saying, there is always more to it!
Trucking permits and licenses, HAZMAT tests and endorsements, DOT drug tests, CDL’s, are really just things for the beck burner!
Firstly and most importantly, you need to find customers and more importantly keep them! Because, I newer sew a trucking business without customers! Did you? I’m guessing not!
In order to keep your customers happy, you need to perform outstanding services to your clients, and always stay on the top! That’s not an easy task at all!
So, instead of trying all on your own, you can just hire a company that deals with third party logistics services.
They often perform transportation, inventory management, and warehousing services at lower cost, and with superior outcomes than the trucking companies using in-house operations.
Furthermore, when it comes to your needs, the third party logistics providers have attention to detail and:
- State-of-the-art technology;
- Information Technology;
With other words, they have it all on one place, so no wonder why they are so common service among the trucking world.
Getting products to customers is complex but standard process. It takes more then just time, company resources and effort to organize everything!
Logistics can really be a distraction from the main business of a company!
If you use a third party logistics providers which specialize in transportation, warehousing and inventory management, you can focus on increasing customer satisfaction and improving the overall picture and standing of your business.
Than, you can spend more time making sure customers receive top quality and excellent service.
In order to run your trucking business successfully you will need to react quickly to changes in customer needs.
Some shippers want a same day or next day delivery, while others are okay with just-in- time delivery. A flexible supply chain lets you react quickly to their needs!
The third party logistics providers have increased resources available which will allow you to evaluate how to better satisfy your customers with higher service levels.
By using the advantages and the strategic approaches that the third party logistics are offering, on the end of the day you will result with more satisfied customers.
As I mentioned earlier, efficiency is a key point to your success and will bring you step forward to customers’ satisfaction.
When you are running your trucking business, there are few things that you need to take closer look to, and one of those things is the cost efficiency.
It’s no secret that today’s shipper wants products in the end user hand quickly, and cost-effectively.
Third party logistics providers can apply economies of scale to deliver your products more quickly and use warehouses spaces more effectively.
Greater efficiency in logistics results in more reliable service and increased customer satisfaction.
State-Of-The-Art Technology and Information Technology
Driving in winter conditions is not hassle just for the experienced truck driver. It will create additional problem for the trucking company too. They have a set due date for deliveries, and yet they are nowhere near finished!
The information technology that the third party logistics are using allows the tracking of trucks, trailers and shipments, both on the supply side and the delivery side of your operations.
Let me add that those state-of-the-art technology systems can be pretty expensive. In order to maintain and update them you will need to hire a trained technical personnel.
The third party logistics provider’s use sophisticated Internet technology and systems. They can provide you and the end user with real time data on the location of critical deliveries.
This way, the tracking of shipments and deliveries to you and your customers is more efficient. It will allow you a quick diagnosis of a problem, and a resolution satisfactory to the customer.
How You and Your Customers’ Can Benefit From Third Party Logistics Services?
In today’s world, customers expect top-notch service. They will be quick to cut ties with a transportation company soon after a single poor customer experience!
I am not trying to pressure you here! But with that kind of pressure to perform, you really need all the help you can get!
So, give the hard job to the third party logistics providers, and watch from the side how you are building a powerful database of satisfied customers and in same time you are increasing sales, building customer loyalty and difference yourself in the marketplace.
Some of the benefits of using third party logistics services are:
- They provide seamless service;
- Cost efficiency and fast, low-cost services;
- On time and real time tracking;
- They will offer the flexibility to select the optimal mode/level of service for each shipment at the best price;
- Customization and personalization of your services;
- They offer flexible space and labor;
- Responsive service;
- They have a wide array of value-added services;
In a service driven industry, customer service and satisfaction is critical in order to gain, obtain and retain customers. So if you need to do something about it, don’t thing twice before hiring an experienced third party logistics providers!
Finally, the third party logistic providers are a segment in the trucking industry that can’t be missed. Without good organized logistics, the whole deal can go down the hill, regardless if you are owner of one of the most prestige trucking company out there, or you are just starting a new business!
With that said, there is no doubt that third party logistic service providers are a MUST! They really can make your life easier and keep you focused on your prime business.
Moreover, when you find a good renowned and recognized third party logistics company you can relax . Then you can take a lot of responsibilities off your plate.
Furthermore, you can focus on improving customer satisfaction and other important things that are curtail for your business, like profitability!
One thing that you should keep in mind is to look for accredited third party logistics company. Pay attention to what you are choosing!
Check the company’s credentials with the Better Business Bureau and some other web sides that deal with companies’ ratings and reports. After all, you are choosing a partner for your business that should increase profitability and customers satisfaction, not ruin it!!
Moreover, it should have a very positive impact on the actual trucking business. With that, not only the customer, but also the whole industry will benefit!
What are some of the third party logistics services that are curtail for your business?
Which third party logistics companies you have dealt with, and what are their pros and cons? How you are improving customers’ satisfaction in your organization?
What are the most important third party logistics services for your business? Please share your thoughts, ideas and concerns with us in the comment box bellow.
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