A new requirement for businesses has emerged: being closer to the customer and attending to their needs faster and faster. This new scenario means companies need to expand their business management model. To be successful and consistent with what is expected from customers’ expectations, companies are innovating; finding new ways of doing business. It’s beyond delivering a product but delivering a better purchasing experience and it is essential to prioritize a logistic operation capable of versatility and to provide accurate results every time.
Third-party logistics (3PL) operates as a trusted and reliable business partner, and it is responsible for logistics processes that include warehousing, supply chain, distribution, inventory business management, packaging, pick and pack, fulfillment, shipping, product return and other support functions. Also, a 3PL company works with you side by side to understand your operations from end-to-end and recommend the most efficient solutions to tackle your new business needs. Having a 3PL partner allows the business to focus on its core activities and delegate the logistics and supply chain management to a reliable (re)source.
Let’s talk about some advantages of having a 3PL partner:
- Logistics and Supply chain expertise: in-house logistics and supply chain operations means fixed costs and regular updates about 3PL trends and technologies. When you have a 3PL partner, you don’t need to worry about theses trends and changes. A qualified professional team with logistics skills is accessible anytime and focused on solving your operational needs and ready to address any logistic and supply chain challenge for you.
- Customer expectations: changes in consumer behaviour over the past years is seeing customer wanting faster, more convenient and focused service. It is not enough to meet their expectations but to exceed them. How your business manages your logistics operations response to these expectations may define if your business is going to succeed or not. 3PL companies work as a strategic partner providing a singular service that will help your business through this customer expectation journey.
- Higher performance: a 3PL partner works for you so you can focus on your business goals. When you have a trustworthy partner that you can rely on to solve any demand your operation confronts, it is possible to enjoy a rewarding partnership that exceeds your business results. At the same time, your partner is going to offer a higher standard of service for you and your customers.
- Reducing costs: managers may believe that 3PL logistics will have higher expenses than in-house solutions. Having a 3PL partner can eliminate the need to maintain a logistics warehouse. No warehouse means the company does not have to spend money on building improvements, security and other related expenses. It’s important to predict the costs involved and oversee benefits in a long-term relationship. Outsourcing your logistics can mean more cost certainty while still reacting to a changing business landscape.
- Growing capability: thinking ahead about the future of the business is also a strategic move. Imagine that you require more physical space to answer the needs of a specific customer, or you are preparing for your peak selling season. Your inventory levels increase and so does your need for space. You can leverage your 3PL partner that offers flexible capacity and its ability to scale based on your business requirements.
3PL companies offer a proven solution that enhances overall business operation efficiency. Now that you know the advantages of having a 3PL partner, take some time to think if your business needs one, too.
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