Businesses often run into logistical issues once they start to grow. This is especially the case with small to mid-sized businesses where the supply chain is affected due to increased demand. This is where a third-party logistics (3PL) service provider can help such businesses. From inventory management to fulfilling orders, these firms can handle all aspects of logistics. They are now trusted by big companies that have outsourced their logistic departments to these 3PL providers for greater efficiency. Using 3rd party logistics can be a huge cost saving over time in overhead costs for warehousing and shipping equipment. Following are some strategic reasons why a 3PL service provider is helpful for the growth of your business.
Logistics Experts
The biggest reason why your business needs a 3PL is to bring smoothness to your supply chain operations. A 3PL company can gather goods, consolidate them, take orders and ship them to the customer. Not only this, they have special warehouses that can store all types of goods. Moreover, they also package the goods, maintain the inventory and label it. A 3PL company is an expert at handling all the logistics and can also help with transportation and selecting the best and quickest routes. These companies have amassed years of experience and have developed good liaisons with shipping companies and vendors. As a result, the prices and discounts are difficult for an outsider to get. All these services can save a company a lot of cash since they don’t have to dedicate resources to a department. By ordering a 3PL company, they not only can solve their vendor issues, but their order delivery will be on time as well.
New Markets
Businesses survive and grow when they enter new markets and have a foothold in them. Unfortunately, this means massive investments for small and mid-sized companies, which their capital doesn’t allow. If such businesses do attempt it, they will suffer losses and bankruptcies. However, 3PL firms in recent years have allowed many businesses to enter new markets without suffering losses. Businesses have to forward their demand, and a 3PL company will take care of the rest. The goods can directly be delivered from warehouses to the customer’s address. This has allowed many small and new businesses to grow and enter new markets without spending a fortune. Some 3PL firms can also market your product, giving you extra benefits in new markets.
Reporting
All 3PL service providers are good at reporting. Regarding the inventory or order delivery, they will provide detailed reports. These reports can help you plan your investments and manage your future orders without a hitch. A 3PL company can also help with faulty orders and send a summary. They will prepare an accurate report of why the order was rejected and the appropriate action taken to resolve the issue. On-time reporting and aftersales is something many companies fail to do but not a 3PL company.
These companies have amassed years of experience and have developed good liaisons with shipping companies and vendors. They also have the software in place, like return management saas, to handle returns, inventory tracking, and logistics workflows.
There is huge competition in the market to survive, grow and be a top player. A good 3PL company can help you do all this and much more.
