Third-party logistics companies have revamped the traditional business models used by businesses across the globe. These companies offer conveniences that were never even considered by business owners and have helped streamline a number of operational processes.
Business owners who are on the fence about partnering up with a third-party logistics company may reconsider once they learn about the various benefits they offer. Competitive businesses must utilize all the resources they have to succeed in the modern era, so here are 5 benefits of using a 3PL company.
1. Getting Help from Professionals
Many new businesses experience difficulty with managing their supply chain. This is common due to the complexities associated with this process. However, a poorly managed supply chain can lead to greater issues that impact the business’s ability to deliver in key areas.
Such businesses can avoid these issues by hiring a third-party logistics company. Such companies have the knowledge required to succeed in supply chain management because it is their specialty. They understand each component in the supply chain and the different ways to tackle them.
The staff at a 3PL will be able to offer solutions to problems that ordinary business personnel may be unfamiliar with. This means issues can be dealt with quickly and without disrupting operations. Business owners and staff can then focus on the core business operations they are actually familiar with.
A third-party logistics company also understands different regulations related to safety and compliance. This reduces the likelihood that the business will run into legal problems during its operations.
2. Easy Business Scalability
Scalability is an essential factor that every growing business must focus on. After all, every growing business must understand how they will handle their operations as they expand. However, this is easier said than done.
Key business staff may be able to scale up operations in areas such as production or customer outreach. However, they may struggle to scale up their logistical operations. Business owners can avoid such issues by hiring a professional 3PL company.
Third-party logistics companies specialize in this area and can adjust their services according to the business’s needs. This means they can assign more staff to work on operations if the business is scaling up. Such an arrangement offers greater conveniences as it saves the business the trouble of hiring additional logistics staff themselves.
3PL companies also offer greater flexibility for short-term events. For example, suppose the business needs to temporarily scale up its operations to accommodate the holiday season. In that case, the 3PL company can adjust its services accordingly without requiring significant effort from the business.
3. Better Value
Businesses who are seeking to save money on logistics can benefit from hiring a 3PL company. These service providers offer excellent potential for cost savings related to logistics. This is because they offer savings in the following areas:
3PL companies have a large number of staff members that perform operations for different client businesses. This staff size helps the company save on average staffing costs compared to individual businesses that employ a small number of logistics workers.
3PL companies are always on the lookout for affordable warehouses for their operations. Some of these companies may have cut deals with warehouse owners to rent multiple warehouses at once. This approach helps save on warehouse rental costs which leads to savings for both the 3PL company and the businesses that hire them.
Lower Shipping Rates
Businesses that attempt to ship goods themselves often deal with high delivery charges due to the scale of their operations. 3PL companies generally offer better shipping rates because they perform these duties for multiple businesses and save on costs thanks to economies of scale.
4. Better Inventory Management
Many growing businesses struggle with inventory management, especially as they expand their operations. Such issues are more prevalent if the inventory management staff they hire are inexperienced or cannot handle the load from an ever-expanding list of demands.
The good news is that 3PL companies excel at inventory management. They understand different approaches to this task and can find the optimal approach that works for a client business of a specific size.
3PL companies often streamline inventory management by using advanced tracking and management software that allow them to monitor and manage inventory at different stages of the supply chain. The benefits of this streamlined procedure are then transferred to the business that hires the 3PL company.
5. Reliable Customer Experience
Each business must ensure its customers are kept happy and that they receive an excellent experience each time they use their services. However, it may not always be possible due to factors that disrupt logistical operations or other issues within the business itself.
Businesses that aim to offer consistently high-quality customer experience can benefit by hiring a 3PL company to handle their logistics. These companies can offer greater flexibility and handle the different types of logistical strains that businesses often experience when managing their operations themselves.
For example, a 3PL can provide next-day delivery for urgent shipments without charging exorbitant rates. Similarly, they can handle returns and exchanges quickly if a customer is unsatisfied with a product.
This flexibility leads to a better customer experience which boosts the brand’s reputation over time and helps them succeed over competitors.
Choosing the Right 3PL Company
Business owners who would like their business to benefit in the ways mentioned above should consider hiring 3PL Bridge to manage their logistics operations. We offer a range of e-commerce fulfillment, inventory overflow, and B2B services for small businesses and enterprises of different sizes.
Our goal is to free businesses from the stresses associated with logistics operations and help them achieve their true potential. Please reach out to us to learn how we can help streamline your operations and help you succeed in your industry.