Benefits of Third Party Warehousing and Fulfillment

third party logistics

Managing warehousing and fulfillment, along with all the other work you have to do to operate your business, can be quite overwhelming. For instance, you might find yourself caught up with other tasks, lacking infrastructure, or experiencing cyclical sales. In such a case, your business will benefit from using third-party warehousing and fulfillment services.  

Benefits of Third Party Warehousing and Fulfilment

Here are some reasons why you should opt for third-party warehousing and fulfillment.

1. Higher Cost Savings

Perhaps the biggest benefit of working with a third party for your warehousing and fulfillment needs is to enjoy higher cost savings. Stop stressing over investing in increased warehouse space, recruiting and terminating logistics employees, updating the latest technology, and worrying about transportation. Just imagine all the resources you can save by reducing these overhead costs. Let your third-party warehousing and fulfillment company take charge of the staffing, billing, and paperwork so you can devote all your attention to your business.

2. Reduced Risk

Delays and unforeseen circumstances often arise in the world of the supply chain, as we’ve witnessed recently witnessed COVID-19’s devastating impact on the international supply chain. When such problems arise, the third-party fulfillment company is responsible for finding solutions and alternatives. As providers, they are even insured against the damage and loss of your products.

3. Operate Efficiently

Third-party warehousing solutions often use advanced tools such as tracking portals, shipment tracking, and status, warehouse management systems to fulfill orders more quickly and efficiently. Thus, working with such companies enables you to work efficiently. This helps improve order accuracy and fulfillment rates, leading to customer satisfaction and cost savings.

4. No Long-Term Leases

Another benefit of using third-party warehousing and fulfillment companies is that they offer flexible pricing. When your business expands or enters a season where sales are slow, they will adapt according to your requirements and adjust the prices accordingly. If you attempt to save money by renting your own warehouse space, you might end up wasting too much money and getting stuck with a longer commitment. Several third-party companies do not require fixed long-term leases. Rather, you can pay on a monthly basis for the space you use. This again translates into cost savings and offers an increased level of control.

5. Focus on Core Competencies

Managing your supply chain will take a lot of time as you will have various responsibilities to handle and optimize. Outsourcing warehousing and fulfillment will enable your business to focus on its core competencies rather than getting involved in managing non-core but critical functions.

Your business can enjoy the benefits of logistical expertise without deploying internal resources. The company’s experience can even help you avoid costly shipping mistakes that take even more resources and time to resolve.  

6. Access to Expertise and Experience

In today’s challenging global market scenario, it’s tough to have internal expertise in all the regions and capacities required. A warehousing and fulfillment company has experience and knowledge in areas such as economic regulation, import and export, transport documentation, and international compliance. If you are planning to expand your business into international markets, you can benefit from the logistics support and know-how that these companies can provide, thereby minimizing costly delays, reducing the cycle time, and making entry into a new region smoother.

7. No Need to Hire Staff

Choosing to run your own warehouse might sound like a great idea. However, you’ll have to recruit employees to ship and fulfill your orders. Managing your staff is going to take up a lot of precious time. The benefit of working with a third-party warehousing and fulfillment company is that they will be responsible for finding and recruiting the right people for each job. They have their own warehouse personnel and staff who can handle all the required labor, including order processing, order shipping, and inventory management.

8. Gain Flexibility and Scalability

Another benefit of third-party warehousing and fulfillment in supply chain management is that it gives you the scalability and flexibility to use distribution and supply resources based on existing business needs. Thus, when sales are low, there aren’t any unutilized resources and redundant investments. Similarly, when there’s an increase in demand, your business can upscale.

9. Gain a Robust Resource Network

When you work with a third-party warehousing and fulfillment company, you tap into a strong resource network that can give you an edge over the competition. A third-party warehousing provider can leverage volume discounts and relationships, enabling your business to benefit from quick service and low overheads.

10. Enhanced Customer Service

An experienced and longstanding warehousing and fulfillment company will treat your freight like their own. This means you will benefit from fewer turbulent rates, a higher percentage of timely pickups and deliveries, lower claims ratios, and less volatile access to capacity.

11. Excellent IT Capabilities

Ecommerce companies can highly benefit from seamless distribution and delivery solutions offered by third-party warehousing and fulfillment companies. This entails fully connected systems that connect to all of the online stores and immediately deliver orders along with automated order tracking and real-time inventory monitoring reports.

Contact 3PL Bridge to Handle Your Warehousing and Fulfilment Needs

At 3PL Bridge, we offer a network of vetted and reliable 3PLs that align with your existing and future needs. We will save you innumerable hours and headaches using our best-in-class matching techniques.

We have more than a 100 warehouses and fulfillment centers in the 3PL Bridge Network, offering the most cost-effective and efficient way to manage, store, and fulfill inventory so you can focus all your attention on your core business.  

In addition to this, we also have strong relationships with major carriers including DHL, FedEx, and USPS, which allows us to offer you excellent cost savings!

Get in touch with us today to get your top five matches based on your geographical location, long-term goals, and logistical requirements.