Whether your customer is a retailer or end consumer, your supply chain is imperative to the success of your business. As a company you want the assurance that your items will be with your customer when they need them.
So how do you achieve this?
Many companies find 3PL (third party logistics) warehousing beneficial to their business model.
With 3PL warehousing the facility is owned by a logistics company, in which you store your goods during their shipping cycle. Outsourcing to a 3PL can provide huge savings in time and cost for your company. As the facility is owned by someone else, the responsibilities for the premises, equipment and staffing costs are with them. They provide staff with all the relevant training that they need and will ensure that they keep up to date with equipment developments in the industry as doing so will lead to a more cost effective business model for their company. These skills and expertise result in an efficient and streamlined warehousing service.
Having the day to day running of your logistics efforts carried out by a 3PL leaves you with more time to focus on your core business, for which 3PL can also be advantageous.
For a company that is looking to expand in to new markets 3PL offers the opportunity to trial business potential in such markets before making the full commitment to open a new distribution centre. Even if expansion is not currently a priority for your company the ability to install a geographical split for your goods through appointing 3PL partners means products can be located close to your markets, offering maximum efficiencies in your supply chain.
3PL offers a great solution for businesses that are seasonal, or for those that experience regular peaks and troughs in demand for their products. The ability to scale warehouse spacing up and down as required will increase company revenue as you will not be spending money on space not being utilised or paying over the odds for short time warehousing leases.
There can be perceived disadvantages to 3PL; the primary concern being that outsourcing your logistics services can mean that an element of control over your business is lost. However, by choosing a reputable 3PL partner and organising regular meetings and site visits with them you can alleviate these concerns. Many 3PL’s are happy to discuss assigning staff full time to focus specifically on your business. These can be qualified and, or trained in the technical aspects of your products to assure appropriate handling and processing of your goods.
Given the number of advantages of working with a 3PL isn’t it time you handed over your warehousing requirements to the specialists?