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The Benefits of an Embedded 3PL

Third-party logistics (3PL) have become an essential element for companies to manage their supply chains efficiently. In recent years, though, it has become obvious that companies of all sizes need an even more strategic approach to supply chain management. By choosing strategically embedded 3PL services, you can ensure your organization uses the most efficient supply chain possible while adjusting to disruptions that could otherwise create serious problems.

Differences Between 3PL and Embedded 3PL Services

When done well, standard 3PL services use strategic account managers to maintain an open line of communication between your company and your service provider. If you ever experience a disruption, you should be able to pick up the phone and contact this person easily. This was once seen as a high level of service that made it possible for companies to minimize disruptions efficiently.

Over time, though, it has become apparent that modern supply chains need a better solution. The strategic account manager would work closely with your company, but he or she would not typically have much input into how you developed your supply chain strategy. Your strategic account manager was probably close enough to your organization to know what your needs were, but that person wasn't truly involved.

Embedded 3PL services take a slightly different approach that integrates your company with the service provider. When it comes to developing and managing a supply chain, it's difficult to tell where your business ends and the 3PL begins. The service provider, in other words, becomes an essential component of your organization instead of operating on the outside.

Benefiting From a Strategic Embedded 3PL

Choosing a strategically embedded 3PL offers several benefits that standard service providers cannot match. When the 3PL becomes an embedded part of your company, it can:

  • Gain a better perspective of your business plan
  • Notice supply chain disruptions sooner
  • Add more flexibility to the supply chain

When your 3PL has intimate knowledge of your business plan (because it has essentially become a part of your business), it can make decisions that shape future success. A closer relationship also makes it possible for your 3PL to respond to disruptions before they have negative impacts.

These benefits are crucial to improving your organization's efficiency, so it can keep costs low while providing a steady stream of products to customers. Interestingly, a report in the Harvard Business Review shows that managers often undervalue some of their suppliers. No matter how savvy your managers are, there is a good chance they do not fully know how to evaluate all aspects of your supply chain. This makes it essential for you to find a 3PL that can provide strategically embedded services.

Taking Advantage of Embedded 3PL

To take advantage of strategically embedded 3PL, you will need a service provider that has experience in this area. The Apparel Logistics Group provides embedded 3PL services that make it easier for you to take control of your supply chain. Request a consultation to learn more about how embedded 3PL can benefit your company and your customers.

Posted: 3/21/2016 3:26:25 PM by Global Administrator | with 0 comments


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