Ohio third-party logistics
As long-time Ohio 3PL supply chain managers, On Time Delivery & Warehouse is in the business of helping clients navigate everything from minor quirks of tricky logistics to major, unexpected supply disruptions and market changes. The U.S. federal shutdown that began Dec. 21st has the potential to threaten supply chains – in the U.S. and globally – on several fronts as the political gridlock drags on, especially if both sides dig in their heels for weeks or months, as the president has said might happen.
If you think government employees and a few federal contractors are the only ones impacted by a government shutdown – think again. Federal motor carriers, freight shipping carriers and agricultural suppliers are just a few examples of entities our Ohio 3PL supply chain managers know can be squeezed when official stalemates stretch on. Sparring and posturing in D.C. and between U.S. and international leadership are often regrettable but inevitable realities. Resolution of those issues is slightly above our pay grade, but what our Ohio 3PL providers can do is help our clients be prepared as possible.
We may not know when this government shutdown will end or if/when there will be another. We do know these issues have a way of cropping up again and again. When they do, we’ll be ready. We have a long list of contingency plans that include alternative suppliers, routes, transport methods and storage facility options that we can deploy at a moment’s notice. This helps our clients keep their goods and services moving and minimize losses, even if they can’t be avoided altogether.
Shipping companies around the globe are increasingly concluding that outsourcing with a third-party logistics service isn’t simply a means to ease the workload or save costs. Shippers of all sizes are finding such partnerships essential to carving a competitive advantage in modern markets. A solid partnership with a trusted Ohio 3PL can mean the difference between sink-or-swim for some shippers.
Consider recent analysis from supply chain think-tank Armstrong & Associates (published in Supply Chain Management Review) revealing that 9 out of 10 Fortune 500 companies depend on third-party logistics for key supply chain services. We’re guessing most folks reading here aren’t on that list, but the reason we make note this statistic is because these firms have the means financially to construct strong internal logistics operations – yet each concluded if they want to enhance client satisfaction in an era when same-day service is expected, it’s not worth the investment to optimize logistics on their own. Reality is, their resources and energy are better spent on innovation. They decided the smartest thing they can do is team up with an experienced 3PL team with the ability to act as a positive business extension.
Shipping companies especially can’t overlook at least exploring Ohio 3PL partnerships because of high truck driver turn over and soaring rates of trucking shipments and expenditures are higher than ever – and continuing to climb. This ongoing trend is squeezing all shippers, but smaller ones in particular. They need the savings 3PLs can provide, and are actively seeking freight broker services to secure better rates.
Thinking about hiring an Ohio 3PL? Operational complexities inevitably expand when the company does. Higher demand and more stock keeping units put added pressure on pickers and packers. At some point, businesses need to consider whether it’s worth it to keep supply chain management in-house or if they should hire an Ohio 3PL.
3PL, short for third-party logistics, is an outside firm used to handle distribution and fulfillment services to keep the supply chain running smoothly.
Both in-sourcing and out-sourcing arguments have merit, but the right choice is going to be highly case specific. It’s our goal at On Time Delivery & Warehouse to help you determine whether a hiring an Ohio 3PL makes the most sense for your current operations and projected growth. We want our customers to plainly see the benefits of a contract with us, so we encourage all potential clients to ask lots of questions and give existing clients the ability to track it all in real time.
Many business leaders have reached the conclusion that 3PL is the way to go, as evidenced by the facts revealed by a new market research report on 3PL Service Outlook projecting the global 3PL market will reach $925 billion in the next two years.