A Third-Party Logistics provider (3PL) in 2025 offers several key advantages for shippers. Overall, a 3PL can help shippers manage the ever-evolving challenges of the logistics and supply chain landscape as well as help minimize investment in long-term assets like warehouses, and transport equipment. This allows you to keep your capital focused on your core business. Here are SIX reasons why partnering with a 3PL will be particularly beneficial in 2025.
- Industry Expertise 3PL providers usually have a deep expertise in logistics, transportation, and supply chain management. They understand both Local Domestic markets as well as International Logistics Markets…how they work and who participates in them. As the logistics environment continues to get more complex, having this 3PL knowledge working for shippers can help them navigate challenges like regulatory changes, new technologies, and fluctuating market conditions.
- Cost Control 3PLs have a wide network of business with carriers, and warehouses, meaning they can offer shippers better rates and more efficient service through their economies of scale. Rather than negotiating individual contracts with multiple carriers or paying full price for warehousing, shippers can benefit from the 3PL’s bulk purchasing power. With multiple options under “one roof” you deal with one resource, and the 3PL manages the entire network of providers. This eliminates the need for in-house logistics teams and management. This also applies to equipment, systems and warehouses. Overhead costs are reduced, and shippers can focus strictly on their core competencies.
- Enhanced Technology Many 3PLs invest heavily in cutting-edge logistics technology, such as Transportation Management Systems (TMS), and Warehouse Management Systems (WMS). They also (usually) provide real-time tracking, and automation tools. In 2025, staying ahead of the technology curve is critical, so partnering with a 3PL gives a shipper access to newer technology without the need for large capital outlays. Using data analytics provided by 3PL’s can optimize routes, improve inventory management and reduce costs. This all adds to better supply chain performance and more informed decision-making.
- Flexibility A major challenge in 2025 will be managing capacity in an environment where labor shortages, truck driver shortages, and rising fuel costs are impacting transportation availability. A 3PL has a broad network of carriers and can better manage the ups and downs of capacity shortages, ensuring that shipments are delivered on time. When it comes right down to it, 3PL’s have larger capacity in both warehousing and transportation options that can be very beneficial to their clients. Shippers can use the 3PL to flex human and equipment assets as demand flexes due to disruptions, “black swan” events and/or seasonal variations. A 3PL is a “LOGISTICS BALLOON”, they expand and contract depending on your immediate needs.
- Improved Customer Experience 3PLs help streamline logistics processes, which can lead to faster delivery times and improved customer service. Through their established networks and optimized processes, 3PLs can manage inventory, fulfillment, and delivery more quickly than a shipper could independently. 3PL’s are masters of taking work out of the process. They must be in order to provide competitive advantages to shippers. They thrive when they make the processes that support logistics activity as streamlined as possible. It makes them better and in turn makes you the shipper better at execution and cost containment. This can translate into better customer experience for the 3PL clients and their customers. Customer Satisfaction is key to long-term retention.
- Focus on Core Competencies By outsourcing logistics functions to a 3PL, shippers can focus on their core business activities—such as product development, marketing, and sales—without being bogged down by complex supply chain operations. This strategic focus on the primary value-added activities can help improve overall business performance. Let someone whose core competency is Logistics handle it for you. Managing the day-to-day complexities of logistics can be time-consuming and stressful. By relying on a 3PL, shippers can offload non-core operational burdens. The 3PL should have a standard stable of reliable metrics that allow you to assess (quickly) whether your logistics system is operating at full efficiency while ensuring that the logistics operations run smoothly.
Conclusion:
In 2025, cash flow is critical, and flexibility is a key trait for success. Working with a 3PL enables shippers to overcome the complexities of a rapidly evolving logistics environment while not tying up capital for long-term investments. From technology access and global reach to cost efficiency and scalability, a 3PL partner can help shippers optimize their supply chain, reduce risks, and stay competitive. By leveraging the expertise, technology, and networks of 3PL providers, shippers can streamline operations, improve service levels, and focus on growth while leaving the logistics challenges to a trusted partner. You focus on your business, we focus on your logistics and at the end of the day, you’re more competitive. Riverside Logistics Services is a 3PL based in Richmond, Virginia that can help you become a more competitive player in your markets by providing competitive assets, management and controls to your supply chain. We have the technology, experience and relationships to do this. Please call Jim Durfee, VP of Business Transformation, at 804-335-8891 for more information and to get the ball rolling.
