Unlocking Global Reach: Why Third-Party Partnerships Are the Key to Supply Chain Success

In today’s interconnected world, global shipping has become an intricate dance of logistics, regulations, and coordination. Ziegler have branches in 15 countries worldwide but through a growing partner network, we have coverage across 195 countries. This exemplifies the complex nature of modern supply chains, with the process of moving goods from point A to point B across international borders involving a myriad of challenges. Some of which are detailed below.

Global shipping presents a multifaceted challenge that encompasses various complex elements. Regulatory compliance stands as a formidable hurdle, with each country enforcing its own set of customs regulations, tariffs, and documentation requirements, making the task of staying current with these ever-changing rules a full-time endeavour. Adding to this complexity are the significant infrastructure variations across regions, where disparities in the quality and availability of transportation networks can substantially impact transit times and costs. Effective communication, crucial in logistics, is often hindered by cultural and language barriers, leading to potential misunderstandings and delays. The geopolitical landscape further complicates matters, as trade disputes, sanctions, and political instability can abruptly disrupt established supply routes, necessitating swift adaptations. Lastly, the technical challenge of integrating compatible tracking and management systems across diverse regions adds another layer of complexity to the already intricate world of global shipping. These intertwined factors collectively contribute to the maze-like nature of international logistics, requiring expertise and adaptability to navigate successfully.

The Drawbacks of Keeping Everything In-House

While maintaining complete control over supply chain operations might seem appealing, there are several significant drawbacks for clients who choose an entirely in-house approach:

Higher Costs: Without the economies of scale that specialised logistics providers can offer, in-house operations often result in higher shipping costs that are passed on to clients. This can significantly impact a company’s competitiveness in price-sensitive markets.

Limited Global Reach: Establishing a truly global presence requires enormous resources. Clients relying solely on in-house logistics often find themselves unable to efficiently serve certain markets or regions, limiting their growth potential.

Slower Adaptation to Market Changes: In-house operations typically lack the flexibility to quickly adapt to sudden changes in demand or new market opportunities, potentially causing clients to miss out on business growth.

Increased Risk of Delays and Disruptions: Without access to diverse shipping routes and methods that 3rd party networks provide, clients face a higher risk of supply chain disruptions due to unforeseen events in specific regions.

Reduced Focus on Core Business: Managing complex global logistics operations in-house can divert significant time and resources away from a client’s core business activities, potentially hampering innovation and competitiveness.

According to a 2022 study by Gartner, companies that rely solely on in-house logistics spend an average of 12% more on their supply chain operations compared to those leveraging 3rd party partnerships.

10 Benefits of 3rd Party Partnerships

Given the complexities of global shipping and the drawbacks of a fully in-house approach, partnering with 3rd party logistics providers offers numerous advantages:

1. Access to Specialised Expertise: 3rd party partners bring deep, local knowledge of specific markets, regulations, and best practices. This expertise can be invaluable in navigating complex regulatory environments and optimising routes. 
2. Cost Efficiency: By leveraging the existing infrastructure and networks of partners, companies can achieve economies of scale without the need for massive capital investments. The 2023 Third-Party Logistics Study reported that shippers using 3PL services saw an average logistics cost reduction of 15%. 
3. Flexibility and Scalability: Working with multiple partners allows companies to quickly scale operations up or down in response to market demands. This agility is particularly valuable in today’s volatile global markets. 
4. Risk Mitigation: Diversifying logistics operations across multiple partners helps spread risk and reduces vulnerability to disruptions in any single region or provider. 
5. Focus on Core Competencies: Outsourcing logistics to specialised partners allows companies to concentrate on their core business activities, improving overall efficiency and competitiveness. 
6. Technology Access: Leading 3rd party logistics providers invest heavily in advanced technologies like AI-driven route optimisation, real-time tracking, and predictive analytics. Partnering with them gives access to these capabilities without the need for in-house development. 
7. Global Reach: As demonstrated by Ziegler’s model, partnerships enable companies to offer truly global coverage without the need for physical presence in every market. 
8. Compliance Assurance: Reputable 3rd party partners stay current with local regulations, reducing the compliance burden and risk for their clients. 
9. Improved Customer Service: With local partners handling last-mile delivery and customer interactions, companies can often provide better, more culturally attuned service in diverse markets. 
10. Innovation and Best Practices: Exposure to multiple partners’ operations allows companies to observe and adopt innovative practices from across the industry.

According to the 2023 Third-Party Logistics Study, 93% of 3PL users and providers agree that their relationships are successful. Moreover, 64% of shippers reported that 3PLs have helped them improve customer service.

While global shipping remains a complex challenge, the strategic use of 3rd party partnerships offers a powerful solution. Ziegler are able to demonstrate that by combining a core network of owned operations with an extensive web of partnerships. This enabled our clients to achieve global reach, maintain operational efficiency, and possess the agility to thrive in a dynamic marketplace. As supply chains continue to evolve, the ability to leverage diverse partnerships may well become a key differentiator between market leaders and those struggling to keep pace with global demands.

Speak with a Ziegler sales representative today to elevate your supply chain towards conquering the international market. https://www.zieglergroup.com/gb/contact/