Factors to Consider When Choosing a 3PL: Part 2

May 17, 2018 | Services | 0 comments

As businesses expand into emerging global markets, managing complex logistics operations become cumbersome. The challenges begin with but are not limited to establishing a supply chain that is aligned with the business strategies. The other concerns include obtaining licenses, language barriers, customs, and handling various currencies. Handling all of the logistics in-house incurs huge costs in terms of investment in technology, equipment, and manpower.

The use of third party logistics is a growing trend in the recent years. Statistics show that the market share of 3PL was $750 billion in 2016 and is expected to grow at a rate of 4% annually.

5 Key benefits of 3PLs

Here are some of the key benefits of using a 3PL provider:

Cost optimization: One of the key benefits of engaging a 3PL provider is to do with cost efficiency. Since the 3PL provider can offer shared space at the warehouse and transportation, the costs related to these are reduced. The 21st Annual Third-Party Logistics Study indicates that 75% of respondents who had outsourced logistics found significant cost reduction.

Better resources: A 3PL provider who has a global network of resources can be a key advantage when businesses expand overseas. The outsourced logistics provider can take care of hassles such as licenses, customs, and currency concerns effectively. Such a tie up can improve efficiency and optimize costs.

Transparency and accountability: In today’s competitive world, 3PL companies are not merely service providers, but are increasingly assuming a collaborative partnership. Increased accountability and transparency are some of the features of an efficient 3PL provider. The Third-Party Logistics Study revealed that 91% of the businesses and 97% of the 3PL providers believed their relationship was positive and successful. Transparency at every step is a key benefit that 3PL providers can offer. Businesses can track the data available including performance metrics and indicators to ensure accountability.

Improved customer service: With a better network of resources at their disposal, 3PL providers can meet difficult deadlines and speed up processes. In the study mentioned above, 86% of businesses surveyed said customer service was improved by outsourcing to 3PL providers.

Use of technology: 3PL service providers are quick to adapt to technological innovations and IT integration. Because the outsourced providers can distribute the cost among multiple clients, they can invest in advanced transportation and warehouse management systems. 3PL providers are in a better place to adapt to rapidly emerging technological innovations in logistics.

Oceanstar by Seldat has built a favorable reputation as a global transportation logistics and procurement partner over many decades. We provide the advice and supply chain management you need, whether it be for the procurement of products or the transportation of cargo via ocean, air, trucking, or rail. Click here to learn more about our network and contact us if you would be interested in speaking with an Oceanstar representative.

View Part 1 of this blog series here (Factors to Consider When Choosing a 3PL: Part 1)

Global Guidance. Trusted Partnership.



Paul Conolly

Paul leads the Executive Team for the Oceanstar Group. Prior to founding the company, Paul enjoyed a distinguished career with OOCL–both at sea and ashore. At sea, Paul rose through the ranks to become OOCL’s youngest captain at the age of 27. After coming ashore, he held key management positions in both Asia and North America. Paul’s greatest strengths are his industry experience, critical thinking, and his leadership that extends to developing people and building robust teams and partnerships. Paul is a lifelong learner who is actively involved in supporting education. He has served on a number of non-profit Boards in the past, including the Waldorf School of Orange County, and is currently on the Board Of Trustees for the Association Of Waldorf Schools Of North America. Paul is married with two children and is an avid soccer fan.

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James Conolly

James oversees financial planning, manages risk, and evaluates strategic growth opportunities for Oceanstar as well as liaising with existing and potential investors. Prior to joining the company, James worked in banking, most recently with Barclays Investment Bank. During his 18-year banking tenure, James worked across multiple industry sectors, including Transportation and Logistics where his consultative approach to financial risk management has safely steered many companies through turbulent market conditions. James relocated from the UK to Southern California in April 2016 with his wife and two children and has wasted no time in learning to surf.

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Cara Conolly

 

Cara guides the Oceanstar team in the realm of Human Resources, operations, and payroll. Co-founder of the company, she draws from her many years as an educator and her studies in psychology to help develop the potential of each member of the team. Cara’s greatest strengths are her strong business acumen, solution-based orientation, and real connection to people. Cara loves cooking, hiking, traveling, and spending time with family and friends. She is married with two children.

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Irene Lim

Irene Lim spearheads Oceanstar Group’s Sourcing division with responsibility for all aspects of the business including sourcing, trading, import/export, and logistics. Prior to joining Oceanstar, Irene was the Export Sales Manager for ARC Air Logistics. A veteran, with over 30 years of experience in commodity sales, sourcing, and freight forwarding, she brings extensive knowledge, a true sense of urgency, negotiating prowess, and well-established contacts that enable her to execute seemingly impossible deals. Because helping and serving others is her passion, Irene makes herself available to her customers with full dedication. Irene loves to cook, spend time with her three daughters, and unwind with her DVR.

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Logan Moore

Logan manages Oceanstar’s Global transportation division with responsibility for business development, agency alignment, staffing, and regulatory oversight. Most recently, he served as a Director of International Pricing at Suddath Global Logistics. Logan began his 30-year freight forwarding industry tenure as an import documentation runner and warehouse employee. Through his advancement, he has learned every aspect of the business while building steadfast relationships. Logan’s nuanced industry knowledge and exceptional negotiating skills benefit Oceanstar’s partners at every turn. Raised in Chicago with a particular love for the game of baseball, Logan was a long suffering Cubs fan but with the Cubs ending a 108 year drought his loyalty has finally paid off.

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Paul Conolly

Paul leads the Executive Team for the Oceanstar Group. Prior to founding the company, Paul enjoyed a distinguished career with OOCL–both at sea and ashore. At sea, Paul rose through the ranks to become OOCL’s youngest captain at the age of 27. After coming ashore, he held key management positions in both Asia and North America. Paul’s greatest strengths are his industry experience, critical thinking, and his leadership that extends to developing people and building robust teams and partnerships. Paul is a lifelong learner who is actively involved in supporting education. He has served on a number of non-profit Boards in the past, including the Waldorf School of Orange County, and is currently on the Board Of Trustees for the Association Of Waldorf Schools Of North America. Paul is married with two children and is an avid soccer fan.

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