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The Logic of Thirds How tapping into third-party logistics companies can help save you money

By Jennifer Lawler

Opinions expressed by Entrepreneur contributors are their own.

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.

"The great 3PLs help you create processes that deliver products in a shorter time period and prevent you from moving stuff around the country unnecessarily," says Josh Johnson, president of Fidelitone Logistics in Wauconda, Ill. Additionally, 3PLs can help save money by providing access to expensive IT systems, such as freight management systems.

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