Outsourcing your company’s warehousing and distribution services can be a tremendous benefit – so why are many companies hesitant to take the leap? In most cases, it’s because they’re not sure how outsourcing will relate to profits, impact flexibility, or change the company’s ability to innovate.
But in reality, outsourcing to a third-party logistics provider, or 3PL, is most likely the best possible choice you can make for your company.
6 Reasons to Outsource Your Warehousing and Distribution Services
Outsourcing might be the best choice for these reasons:
1. Access to Necessary Solutions
Working with a 3PL opens up a world of possibility when it comes to solutions. 3PLs provide freight logistics, GPS tracking, order fulfillment, kitting, and other end-to-end logistics, which take a huge responsibility off your shoulders and make it easier for you to manage day-to-day operations. Having this kind of access to necessary solutions through outsourcing can give your business a big edge over your competitors because they’re simply not able to offer what you are at the same costs.
2. Cost-Effectiveness
When you outsource warehousing and distribution services to a 3PL, you don’t have to spend profits on warehousing space and infrastructure – you’re free to use your profits in other ways that help grow your company. You can expand without putting out a tremendous amount of capital, which is something your competitors aren’t able to do.
3. Efficiency
Your 3PL meets all your inventory, storage and warehousing, and transportation needs. You don’t have to coordinate between companies, which provides more room for error, and you don’t have to juggle small and large shipments while dealing with time delays and extra costs.
4. Expertise
Most business owners are experts in their own products and solutions… not shipping, warehousing and managing inventory. When you partner with a 3PL for warehousing and distribution, you get to take advantage of that provider’s experience and expertise in supply chain management.
5. Flexibility
When you work with a 3PL for warehousing and distribution, you get the flexibility to do what you need to do to run your business. Your provider handles the technical side, reduce your inventory carrying costs by carrying the right levels of stock, keep transportation costs in check and use its own streamlined processes to ensure your success. Remember, too, that your 3PL provider’s success hinges on yours – without your business, your provider can’t stay afloat. That means your logistics provider puts your needs and best interests first.
6. Scalability
Whether you’re entering a new market or experiencing the fluctuations your business normally experiences, working with a 3PL provider lets you scale your distribution model as necessary. You’ll enjoy more cost-effective solutions for warehousing (no more empty warehouses or scrambling to find extra space) and pay only for the distribution services you need.
Thinking About Outsourcing Your Warehousing and Distribution Services?
Outsourcing your warehousing and distribution services may be a lot more cost-effective than you think it is. Call us at 256-831-5580 or request a quote for 3PL services that really meet your needs – if we can help you, we will.