The freight shipping industry has undergone quite a few changes over the years. In modern times, it is possible for the smaller Texas contract warehouse to survive in this business – unlike in the past, when the industry was dominated by big business and their impressive fleet of freighters. This resurgence of smaller regional contractors, such as the typical California contract warehouse, allows for a more specialized industry. Smaller companies began to gain ground by focusing on the niche needs of certain other companies and larger companies eventually conceded to the ground gained by their smaller competition. During this time there were no mandates about which carriers a company must select for its freight needs, but larger companies seemed to take the cake when it came to the heavyweight shipping requirements of clients.

The business we know as the third-party Logistics Company or 3PL; is only a recent development. Such businesses have really begun to transform the industry and the way companies are now doing business. Initially, 3PL’s came into existence to provide support of a company’s entire chain of supply, rather than merely its freight needs. The first of such businesses went to every imaginable supplier, the large traditional carriers, the small parcel carriers, the regional industry and the freight-forwarding industry and began to negotiate rates. This way, one 3PL would be able to offer all such services to each client. The third- party logistics industry quickly became a $110 billion enterprise.

Some of the benefits of using a 3PL over a variety of suppliers include improved transit time, versatility, flexibility, it is a totally supply chain management and the convenience of a one-stop shopping experience. Because a 3PL can improve transit times for their clients, that client’s business will ultimately perform better. Their products will arrive at the market in a timelier manner, thus quickening the pace at which they receive earnings from their customers. A client of a 3PL may also see materials brought to a production facility in less time, which means they can get that product on the market at a faster rate.

Clients need only to take their supply chain issues to one source to have them reconciled an incredible new convenience that sets 3PL’s apart from other such logistics service providers. In the contemporary era, the need for speed is ever expanding in the marketplace. Businesses need efficient shipping services so that they would not be outdone by the competition. Not only that, but a 3PL can offer the great convenience of presenting competitive rates from a series of different carriers.

A 3PL will help companies control costs and expand on efficiency in a way they could not alone. Because the entire supply chain is managed by a 3PL, such a company offers the convenience of dealing with only one company which will oversee all aspects of the chain. A smaller company will especially benefit from the use of a 3PL in that it will be able to successfully manage resources alongside their business objectives.

Author Bio: Ellie Lewis recently stored the overstock from her store in a Texas contract warehouse. She used a California contract warehouse to store her seasonal products.

Category: Business
Keywords: Texas contract warehouse,California contract warehouse