Local industrialists often underestimate the importance of logistics in maintaining a competitive advantage in this increasing globally competitive sector. While manufacturing facilities place much focus on their core functions such as production, high quality outputs, reducing costs etc, how they acquire raw materials and transport products to port for international export or into Africa for regional exports, may be overlooked.

Moreover, manufacturing facilities should be strategically situated in locations that offer seamless, accessible and cost-effective logistical routes, thereby significantly reducing overall costs associated with getting a product to market. In addition, it is necessary that logistics strategies are flexible and unique, enabling manufacturers to respond exclusively to rapidly changing market needs.

In an endeavour to remain competitively relevant and logistically efficient, manufacturers are progressively swaying towards outsourcing third party logistics (3PL) to meet rising customer expectations for fast delivery, to manage the demands of just-in-time inventory and to control the inventory challenges presented by e-commerce. 

A third-party logistics provider can assist manufacturers by minimising transportation costs while simultaneously delivering freight in a timely manner, thereby positively contributing to the customer experience.

Further, 3PLs provide more efficient routing management as they map out the optimal route for an entity once the manufacturer has determined the origin and destination for each shipment. In addition, they are equipped with the appropriate resources and experience to recommend the ideal carrier for a specific route, based on cost-effectiveness, customer service and whether they can meet delivery requirements of the manufacturer in question.

A reliable 3PL logistics company provides an effective way to re-engineer distribution networks in order to meet an increasingly global market and place a manufacturer at the forefront of their competitors. Most 3PL providers have strategically positioned themselves within the supply chain, providing supply chain expertise as well as economies of scale.

Moreover, they have the expertise to direct manufacturers through new security regulations and have the capabilities to recommend best practices to advance security policy and procedures.

Subcontracting a 3PL logistics partner assists industrialists with bills-of-lading and freight scheduling to reduce the costs of shipping products to suppliers. It enables manufacturers to reduce costs associated with payroll, benefit and liability costs that are generally required for permanent employees.

Outsourcing an expert logistic provider enables manufacturers to realise logistics efficiency which ultimately translates into total cost savings associated with fleet maintenance, insurance, equipment upgrades, carrying costs, returned goods as well as lost sales. Similarly, there is a risk reducing factor as the 3PL typically covers the cargo insurance for shipments.

Furthermore, 3PLs enhance customer service as they manage supply chains in a manner that expeditiously moves inventory to end users. Efficient manufacturer logistics companies will correspondingly take accountability for attending to customers and products as if they were their own and realise exceptional performance standards. 

Delegating the logistics function to a 3PL provider can enable manufacturers to utilise their resources more efficiently by enabling them to prioritise and focus on their core capabilities.

In view of the considerable benefits that outsourcing the logistics function within manufacturing units provides, the upcoming Manufacturing Indaba to take place in June 2020, coordinators officially invite third part logistics companies to attend the nation’s premier manufacturing event to showcase their solutions to Africa’s industrialists.

Such attendees will be presented with unrivalled networking opportunities to forge robust and sustainable relationships with significant manufacturers who can ultimately take their transport businesses to the next level.