Even though logistics companies provide a very important service, there are several pros and cons that you should consider prior to hiring one. The best way to choose among logistics transportation services is being educated as to what you can expect.
Pros of Third-Party Logistics Services
- Convenience – By outsourcing your logistics needs, you have the opportunity to focus on more pressing business matters. With this service, you submit your customers’ orders, which are then dispatched on your behalf. At the end of the billing cycle, you receive one consolidated invoice, which further simplifies things.
- Flexibility – With these services, you only pay for what you use. Therefore, if you are not in a position to make a commitment to leasing a warehouse or bringing on additional staff, these services are ideal.
- More Competitive Transport Rates – By having a logistics company handle all of your customers’ needs, it could be in a position to receive volume discounts from various freight carriers, with those savings being passed down to you.
- Expertise – For every aspect of logistics, including simple things like barcoding and labeling and more complex responsibilities, the right company will have unrivaled expertise that keeps your company organized and your customers happy.
Cons of Third-Party Logistics Services
- Cost – Even though you can spend less by hiring the right logistics company, there is a price to pay for the convenience involved.
- Hands-On Control – You also need to consider that by using logistics services, you are handing over control. This is why hiring a reputable and trusted company is so imperative. You always want to hire a company that is 100 percent dedicated to you and will always make decisions that are in your best interest.
- Impact on Reputation – If the third-party company you choose makes a serious mistake, there is a good chance that it would reflect on your reputation. This is why you always want to conduct extensive research on several companies. That way, you can choose the best company for your specific needs.
MGA International ranks as one of the top 3PL companies in Canada. We have a long history of providing superior services at competitive rates. To learn about all of the different services that we offer, please visit our website. If you are ready to get started, contact us by phone to speak with a representative.