Saving Money with Third Party Logistics Companies

Most companies outsource at least some of their tasks to a third party. This makes perfect sense; whether it’s payroll, cleaning services, or marketing tasks, it’s often more cost-effective to farm these tasks out. Using a third-party logistics (3PL) company to help with shipping and distribution of product is one of the most common outsourcing expenses we see. When evaluating these types of outsourcing arrangements, it’s important to know just how much the services cost your business and if you’re getting the best deal.

Unfortunately, getting the best deal when it comes to logistic expenses isn’t usually the case. These 3PL companies typically charge each client the cost of the shipping plus a significant margin, creating a very inflated cost that is passed on to you. We often work with clients that sign on with 3PL companies after being offered a “discount”. The problem is that after inflating the price considerably up front, a percentage off is still more than you should be spending.

That’s where a cost management company like Silverback comes in. We unveil and eliminate the markup, plus get you the best market rate for your shipping and distribution needs. Period. We are still able to provide you with all the benefits of a 3PL, minus the inflated expense.

In addition, all audit and pay support that would usually be an extra expense for your business is now covered through services such as ours. Not only are you getting the best market rate for your logistics needs, but we are able to erase your supplementary audit and pay service expense. Now that’s a good deal.

Do you have questions about your logistics expenses? Contact us today, and learn how we examine every area of your business, not just logistics, to make sure you’re getting the best value. Partnering with Silverback is risk-free; if we don’t find savings for your business, you aren’t charged for our services. That’s how confident we are that we can lower your expenses and help you increase profits.

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