July 13, 2023

Why Are Large Companies Increasing Their 3PL Partnerships?

The transfer of physical goods is a crucial process for organizations, commonly known as logistics. However, logistics involves more than just this transfer. It also encompasses aspects such as revenue streams, profitability, and operational and analytical functions for both inter-company and intra-company operations. Logistics play a significant role in determining production rates.

For manufacturing and retail companies, logistics is often not their primary area of expertise. Similar to small and medium businesses, larger companies that require logistical support should also consider outsourcing their supply chain processes, either in part or entirely, to a non-asset-based 3PL service provider.

What is a large company?

It is interesting to note that there are no set criteria that define a business as either “large” or “small.” Typically, the federal government assesses a company by looking at its number of employees or average annual receipts. Generally speaking, a business is considered large if it has a yearly revenue of at least $7 million and 500 employees. However, some exceptions may apply depending on the industry.

It’s worth noting that many of the companies considered to be large are in the retail or manufacturing sector. Furthermore, more organizations are recognizing the advantages of entrusting their logistics operations to a 3PL service provider. These providers offer transportation services, as well as report essential KPIs and metrics to encourage continuous improvement.

logistics manager

Logistics management as a business game-changer

It is common for large companies to have at least one logistics management professional on their team. While there is no right way to handle logistics processes, larger corporations often have a dedicated team overseeing their supply chain operations and outsource when extra help is needed.

As logistics operations become increasingly complex, there is a growing demand for 3PL (third-party logistics) services. Companies with complicated supply chains can benefit from partnering with specialized professionals with advanced knowledge and technology. By leveraging the expertise of a trustworthy transportation partner, supply chain weaknesses can be addressed.

At Last Mile Logistics, we are committed to ensuring that your orders reach their destinations. We closely monitor the entire transportation process to ensure that everything runs smoothly. If you have an RFP or any other concerns, please don’t hesitate to contact us.