Why Efficiency Matters for Transportation and Logistics Companies
In order to understand why efficiency in a transportation, shipping, and logistics company is important, you need to first understand how this type of business operates. Third-party, transportation, shipping, and logistics companies optimize the shipping process for you. These companies are helping you to get your product from point A to point B in the best, fastest, and simplest way. That means that everything implemented is selected with efficiency in mind because efficiency in moving the product means cost-efficiency for the client.
Here are some of the factors that need to be optimized:
Type of Shipping
The transportation and logistics company has to decide how best to transport your product. Should it be transported by truck? Rail? Container ship? The answer is it depends on many of the other factors included below. What are the time constraints of each shipping method? What is the cost? Where would the product be picked up or dropped off? These are all part of the calculation.
Obviously, speed of shipping is important. However, for some products it is more important than others. For example, products that are urgently needed may require the fastest shipping available. Similarly, products that are perishable may require particularly time-sensitive shipping. Speed of shipping is an important part of the efficiency equation.
Your product may or may not need warehousing while it is being shipped. If so, is warehousing available where you need it? Does the warehousing have the needed temperature or security controls? Warehousing is an important factor.
Everything the shipping and logistics company does for the client is part of a large logic problem, and the whole thing turns on the efficiency of each part. This is exactly why manufacturing companies hire third-party (3PL) logistics companies—because 3PL companies are the most efficient at getting your product moved cost-effectively.
3PL companies have efficiency down to a science, and they are improving it all the time for the benefit of the client. These businesses, like ours, have efficiency as the core tenet of the service provided.
Pacific Coast Distribution, LTD, is a family-owned transportation and logistics company, based in Langley, British Columbia, with 20 years of experience and a fleet of 50 trucks and a 60,000-square-foot warehouse.
If you have any questions about this article or would like to talk to us about your transportation and freight needs, give us a call at (877) 999-8489.