Customer satisfaction is the goal of every successful enterprise. For an automotive parts supplier, this means that the right components need to be shipped to the right place in good time, and at a competitive rate.
Unfortunately, the auto parts after-market industry presents one of the most complex supply chains to manage. Dealers often under-perform due to inefficient logistics management.
One solution for after-market suppliers of all sizes is to use the services of a logistics company with the necessary expertise and capabilities.
Common challenges faced in the automotive after-market
Businesses that choose to navigate the automotive after-market supply chain without the assistance of an experienced logistics partner can face challenges at every stage – from the collection of parts from suppliers, to the delivery of orders to customers.
An inability to find and implement logistical solutions can result in obsolete inventory, unfulfilled orders, delayed delivery times, increased warehousing and transportation costs, slow growth and the loss of business to competitors.
The benefits of using a third-party logistics manager
Here’s how a third-party logistics manager (3PL) can provide your business with a competitive advantage.
Effective inventory control
By outsourcing inventory management to a 3PL, businesses in the automotive after-market can ensure that they strike an optimal balance between under- and over-ordering.
Eliminating over-ordering can reduce warehousing costs and improve cash-flow by freeing up capital unnecessarily tied up in stock, while eliminating under-ordering can improve efficiency, increase sales and lead to greater customer satisfaction.
Reduced transportation costs
By determining which mode of transportation is best for each shipment, consolidating shipments and providing single-source shipping services, a 3PL can reduce your transportation costs, allowing you to offer competitive prices.
By monitoring operations at every stage of the supply chain, a 3PL can quickly identify inefficiencies. The 3PL can then devise an effective management solution for your company that coordinates the collection, sorting, repackaging and delivery of auto parts. This will ensure that each shipment reaches the correct destination on time.
In the age of on-demand services, customers expect to be able to track their order at any point. By partnering with a professional logistics and courier service that provides real-time tracking, you can guarantee that both you and your customers have access to accurate status updates at all times.
Finding a third-party logistics management and courier company
The key to operating an optimal supply chain is choosing the right logistics partner for your business. The ideal 3PL will offer an individualised logistical plan that is tailored to the specific needs of your business, and will be able to provide innovative solutions to improve your operations.
If you’re looking for a logistics partner or courier for car parts, contact us at Hann Freight (PTY) Ltd. Using our expertise, you can improve efficiency at every stage in your supply chain, optimise inventory, reduce overall costs and ensure delivery of orders on time, every time.