3 Reasons to Add a 3PL to Your Parcel and LTL Shipping Software
According to reports from multiple analysts and transportation industry groups, freight capacity challenges are expected to continue.
Driven by continuing economic growth, a persistent driver shortage, and despite surging inflation, most industry observers expect more capacity limits, fuel surcharge increases above 20%, and the likelihood of rate increases. Now may be a good time to consider partnering with a 3PL service for many shippers facing these unusual market conditions. With 3G Pacejet Shipping, you can activate a 3PL directly within the platform for streamlined rating and shipping execution.
Read on to learn about three key reasons to add a 3PL to your shipping operations, along with a few ideas on how Pacejet can help.
Reason #1: Save 15% or More with Lower LTL Rates
Lower shipping rates are one of the most compelling reasons to add a 3PL to your multi-carrier shipping mix. Finding the right 3PL relationship can help small and midsize shippers leverage 3PL pricing power to reduce freight costs significantly. Conflicts with direct LTL carrier relationships and demands for committed volumes are typical complications that shippers navigate. However, finding a way to add a 3PL to cover even a fraction of overall shipping volume can generate savings of 15% or more for many shippers.
This sample from the Pacejet Shipment Savings report showcases how 3PL services can operate as part of your complete multi-carrier parcel and LTL fulfillment, and includes a 15% savings example from using a 3PL services versus a direct LTL carrier.
Reason #2: Offer 10x More Shipping Choices to Back Better Customer Service
For growing businesses, one good 3PL relationship can bring access to many more freight choices than are otherwise manageable by a small team. The extra carrier options deliver more flexibility and better abilities to scale. For example, a shipper could add a large new consumer furniture product to their offering and suddenly find themself in need of better residential delivery. Or an outdoor lifestyle brand might develop a popular new premium outdoor grilling product, and customers may suddenly demand white glove delivery to unpack their fancy new grill. With a 3PL service added to your multi-carrier shipping mix, offering new customer services can be faster and more scalable since you do not have to ramp up a new carrier relationship.
Reason #3: Scale-Up Faster as Your Products, Customers, and Market Evolve
Broad service coverage is another strength offered by many 3PL services. For example, BlueGrace is a 3PL that promotes more than 300 freight choices as part of their LTL services network. Echo Logistics is another provider with more than 120 options, and World Wide Express has more than 70 LTL options. These types of freight options are important as your business adds new products, more diverse groups of customers, and broader distribution coverage. You may not have the time, expertise, or capital to expand your carrier network, and for small and growing businesses alike, having a 3PL service available can be helpful to automatically audit and recover billing errors, launch distribution in new markets, manage uncertain capacity, or test out services before your teams are ready to take on direct responsibility.
Start Simple and Measure Performance as You Grow
The Pacejet carrier network makes more than 1,000 LTL freight options available to your operations with more than 16 3PL services. Each 3PL service connection can make hundreds of LTL freight options accessible, allowing your team to rate and ship through a 3PL service as easily as you would with a direct LTL relationship. As a best practice, we recommend customers take a simple step by activating a 3PL with rate-shopping turned on and using the shipment savings report to monitor margins as part of regular 3PL performance reviews.
The Pacejet Rate & Ship page shown here illustrates how 3PL services can operate as a seamless part of your multi-carrier parcel and freight fulfillment process. Pacejet connections with 3PLs provide dynamic access to many LTL freight services determined by the contract terms and carrier coverage rules defined in your 3PL contract.
Ready to add a 3PL provider to Your Shipping Operations?
Do you want to experience LTL freight savings, more shipping choices, and better abilities to scale? Whether you already use Pacejet or think Pacejet’s 3PL connections may help your business grow, get in touch with us.