fulfillment service – Rising Fuel Costs May Effect Third Party Logistics
The challenges facing companies in general, particularly supply chain professionals continue to grow dramatically. The whole consumer demand supply chain continues to have more demands put upon it, and 3rd party logistics fulfillment service providers and professionals must meet these new requirements with innovative solutions. As fuel costs rise the impact is felt throughout the industry and ultimately the consumer. Foreign and domestic policies, clean energy initiatives and off shore drilling are potential long term solutions, but the results of those intitiaves will not be felt for years or decades.
Logistics companies and consumers are forced to adapt to sustained high fuel costs. consumers and businesses are paying more attention to where their money is going and fuel costs are generally at the top of the expense category. The immediate solution is for fulfillment service companies and consumers to adapt to the current issue of rising fuel costs. Ultimately the increase in fuel costs will be imbedded in the price of goods purchased by consumers. As a business, you can help offset these increased final consumer prices by better managing your supply chain solutions.
Freight carriers and 3rd party logistics fulfillment service providers have the biggest opportunity to help offset consumer costs. By maintaining equipment, reducing idle times, and combining partial loads, carriers are able to reduce fuel costs. Carriers can also partner with 3PL warehouses to help better utilize their equipment.Often times, carriers are able to offer warehousing solutions to better utilize equipment. Outsourcing to a 3rd party logistics provider or building a relationship with a 3PL network provides a quick solution to problems that carriers and drivers face. The fuel savings carriers gain can lead to less fuel waste and unnecessary expenses, ultimately leading to higher margins for you and reduced costs for consumers.
THIRD PARTY FULFILLMENT SERVICE WAREHOUSES GIVE THE CARRIERS AN OPPORTUNITY TO MAX OUT THEIR LCL LOADS BY GIVING THEM A LOCATION TO CROSS DOCK MUTLIPLE SHIPMENTS FOR LOCAL DELIVERIES. BUILDING A RELATIONSHIP AND A NETWORK OF 3PL WAREHOUSES THROUGHOUT THE COUNTRY PROVIDES A QUICK SOLUTION TO PROBLEMS THAT ARISE EVERYDAY FOR CARRIERS/DRIVERS. THE FUEL SAVINGS A CARRIER CAN GAIN BY HAVING A QUICK SOLUTION TO PROBLEMS CAN ULTIMATELY LEAD TO LESS FUEL WASTE AND UNNECSSARY EXPENSES THAT ULTIMATELY LEAD TO HIGHER MARGINS FOR THE CARRIER AND REDUCED COSTS TO CONSUMERS.
3rd Party Logistics Providers offer flexibility in delivery location, equipment, storage, handling, and labor. Third party logistics fulfillment service providers enable manufacturers, retailers, and wholesalers to gain competitive advantage through optimal transportation management. Logistics providers provide the advanced technology and services necessary to improve service, safety, and financial performance.
Consumers want a cleaner environment and more environmentally responsible actions, retailers and brands respond and make demands on suppliers. Suppliers and supply chain professionals—consumer goods companies rely on 3rd party logistics companies who effectively consolidate LTL (less than load) shipments with other suppliers’ shipments and save on costs. This is the kind of consolidation and collaboration between 3PL providers and companies.