How do you recognize that your business could benefit from a third-party logistics partnership? There is no right answer, especially considering each company has a different reality depending on product portfolio, company size, and market distribution. But there are advantages of having a 3PL partner such as higher performance, reducing capital costs and scalability that would fit whether you are a large or small company.
As a successful business, you should consider delegating your logistics and supply chain operations if you have already maximized your logistics operations but are still falling behind with customer needs and decreasing operational results. The need to separate your logistics from your primary business and entrust them to a specialized and reliable professional team now makes the most sense.
We all know the customer sets the standard now and your business has to be ready to satisfy their needs. How you respond to them can be the difference between your success and your failure. If your business is growing and needs to keep up with increased demand, improvements in your logistics and supply chain operations are essential. They can range from faster delivery times, proper packaging, personalized labels or even wrong assembling of products. Before reaching the point where you may lose customers, you can take action in advance.
During your fiscal year, you may have busy seasons that will require additional short-term space for your products or require more space for a strategic project in your long-term plan. Remember when you have a 3PL partner, you will only pay for the space you use for storing your products. You don’t have to worry about paying for empty space in-house during low seasons.
Finally, your accounting reports can show you areas of improvement in your operations. Fixed building/land expenses and variable expenses such as electricity, security, labour and other costs to maintain your warehouse space could be decreased if you move your logistics to a trusted 3PL provider. And it is not just the costs but also the responsibility of keeping everything working efficiently. A 3PL provider gives you the freedom to focus solely on your core business.
We mentioned before that 3PL companies are a solution for big and small businesses. They can augment your operations by staying flexible and expanding your storage and distribution capabilities as you need them. Take some time to think about your processes and how much of your resources you are spending storing inventory and fulfilling orders.
If you believe it is time to discover what a 3PL partner can do for your business, we can help you here.