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The Logic of Thirds

How tapping into third-party logistics companies can help save you money

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This story appears in the March 2010 issue of Entrepreneur. Subscribe »

If your company spends big chunks of money on shipping, you would be wise to check out a third-party logistics company (commonly called 3PLs), some of which can save you 10 percent to 15 percent on shipping.

"Our core competency is moving products for our customers," says Jim Jelinek, director of operations for Langham Logistics Inc. in Indianapolis. This may include everything from transportation to warehousing to packaging. Some 3PLs work primarily as freight managers and don't maintain hard assets such as warehouses.

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