Overcoming the Issues With Disadvantage of Third Party Logistics
It doesn't matter if your business ships products locally, nationally or globally, much of the price your company pays for shipping is for logistics. With that said, small companies like yours frequently ship their products through a parcel carrier. That, too, can be costly depending on the volume your company ships.
An option for reducing shipping costs is to contract the services of a third party logistics provider. They can put their expertise to work to find for the best parcel and shipping rates.
The disadvantage to working with a third party logistics service is they use logistics software (sometimes proprietary) to estimate your needs, matching your needs with what different shipping companies offer. Your business may not realize the return on its investment should the cost out-weigh the benefit.
If your business is small in comparison to others employing a third party logistics service provider, one way to master the disadvantages of having a third party logistics service is to deploy your own logistics software.
Research has shown that businesses that deploy logistics software can decrease their shipping budget by 10 percent in one year.