3PL, a.k.a. third-party distribution, is a very tough business. Unless a 3PL company is extremely efficient and focuses all of its resources and technologies on productivity, chances are it’s not going to be in business for long. The reason is that 3PL companies are usually paid on a per case/unit shipped basis. Even if the company does a great job in managing its distribution center and, when applicable, its transportation department, all it’s needed to barely break even or, in most cases, to lose money, is a significant reduction in sales volume. This, unfortunately, is not controlled by the 3PL company. Most companies have conceded that they cannot handle logistics needs as well as dedicated third parties. Approximately 70% percent of the manufacturers, distributors, and suppliers in the USA are using or are considering to use a third party logistics provider.
Applied Logistics has successfully managed several distribution centers in the last ten years and has accumulated a huge experience in handling the complexities and difficulties inherent to operating within very small margins in very competitive business environments. This key advantage has prompted us to put together a formidable package comprised of engineering tools and software applications that allows 3PL organizations to maximize their productivity and generate profits rather than losses. We have been there and we know what it’s like! This package includes: Preferred Work Methods, Engineered Labor Standards, and a Labor Management System that could be run is association with a custom-designed Incentive Program.
When it comes to a sophisticated approach to distribution and warehouse management, working with Applied Logistics was a natural. Their systematic approach saved us money and allowed us to run our distribution of nationwide products efficiently. Our partnership benefits all at Lowe's.Joseph Mabry; Executive VP of Logistics & Distribution
As one of the largest food & drug retailers in North America, Safeway Inc. is an innovative company founded on a simple value philosophy: taking care of our customers is what Applied Logistics did for us. Reliable and safe distribution and management systems allowed us to maximize our revenue.Jerry Tidwell, Sr. VP Safeway Supply Operations
Applied Logistics exemplifies the values of Snap-on. Their strong ability to demonstrate integrity, always respect the company in all situations, promote our teamwork, and listen to our inputs to suggested solutions, has made us value our partnership with Applied Logistics. Over the years our distribution, transportation and warehouse management efficiency has drastically increased due to their innovative software and management process. If you are not using it, you are simply wasting your money!Gary Henning, Operations Development