What Is Third-Party Logistics?

With the rapid advancement of technology and the increased monetary benefit of efficient time management, more and more companies are interested in third-party logistics. Long gone are the days when companies focused on in-house operations as they no longer seemed to be the most productive solution.

That’s especially true for smaller or online businesses that don’t need or have the resources to invest in in-house logistic operations. Instead, hiring a professional logistic company that offers third-party transporting services is a much better option for more and more businesses.

Keep reading if you’re interested in what third-party logistics is and what your company can get from it.

About third-party logistics

A third-party logistics company is a special company that provides transportation and warehousing services to its clients.

These companies own or lease large warehouses they later use for storing the items of their clients. Furthermore, these companies are most recognizable for their fleet of trucks or other vehicles that must be capable of completing even the most complex transportation projects.

Essentially, third-party means the companies hire someone from the outside, also known as outsourcing, to complete the task they can’t tackle without help.

For instance, many online retail businesses don’t own warehouses where they can store all the products they offer to their clients. Instead, they hire third-party logistics companies that can store their items safely and securely, alongside storing many other items from other companies. Therefore, the companies can rent shelf space for their products for a certain period.

In addition to storing, these companies can also pack and ship the orders, depending on which services you decide on.

Third-party logistics companies offer full truckload and less than truckload services. If you have big orders that need to be delivered to your commercial clients or wholesale retailers, the fleet of vehicles these companies have can be extremely helpful. Similarly, the logistics companies can assist you in the distribution of orders between warehouses too.

Benefits of third-party logistics

Now that you know more about third-party logistics, you’re probably wondering why any company would hire these services if they can simply invest in developing their own logistics department. Well, there are several reasons why third-party logistics can be beneficial for your business:

Maximize speed and efficiency!

Today, maximizing speed and efficiency is one of the essential steps, regardless of your business size. No company wants to waste their time for no particular reason, which is what third-party logistics is for. Get your items in stock, receive orders, and ship them out in record-breaking times.

Work with professional staff!

One of the reasons why third-party logistics companies can handle a large amount of work in such a short time is because they have professional and skilled staff as part of their team. With the experience and focus of the workers’ on the logistics tasks, you can expect impressive results with a minimal number of errors.

Expand your capacity easily!

If everything goes well, your business and the volume of work will grow. However, you still may not have the resources to get more warehouse space or hire additional staff. Instead, simply hire a third-party logistics company. They’ll easily work with the additional work volume, and you can always rent more warehouse space.

Reduce the shipping costs

Because the third-party logistics firms work with numerous businesses, they can merge all orders going in the same direction. Therefore, they can offer you prices and rates you’ll never be able to match on your own. It’s a simple solution to reduce the shipping costs for your company and your clients.

Reduce the delivery times

Do your clients have to wait for their order to arrive because you can’t seem to gather enough orders to ship them together? Reduce the delivery times for your clients by hiring logistic companies. They even offer same-day deliveries, which your clients will surely appreciate.

Third-party logistics at JRC

At JRC, you can experience all of the abovementioned benefits third-party logistics companies can equip their clients with. Reliable solutions related to transportation and warehousing are the main priorities JRC focuses on.

Mainly operating throughout the Chicago area, we’ll meet all your Chicago-based distribution and warehousing necessities. Nevertheless, our company is equipped to tackle any national distribution project, with our fleet of 9 tractors and a wide variety of trailers.

We provide short-term and long-term warehousing to our clients, inventory control, and even same-day delivery. Thanks to the sophisticated IT system, our clients can track their orders and check where they’re located anytime.

Final thoughts

As one of the leading third-party logistics companies, JRC provides top-tier distribution and warehousing services. Our company strives to make our clients happy with a highly skilled and experienced team that approaches each task with caution and care. Contact us to meet your reliable third-party logistics company today.

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