Are you considering outsourcing an element of your businesses’ logistical backend to a 3pl warehouse? This can be a prudent move for many types of business but is also not a decision that should be taken on a whim, since it may not be the best fit depending on the kind of operation you are running.
Deciding on whether or not to engage a provider of third-party logistics can be one of the most critical decisions you make when it comes to cutting costs in your business. You need to make sure that whatever decision you make does not make things harder for your frontend employees and for your customers, for whom convenience is a significant factor in their purchase decision.
If you make a mistake here, it could mean massive delays in your restocking or delivering timeframes that leave customers dissatisfied and looking at your competitors instead. Don’t make the mistake of thoughtlessly making a decision when it comes to how your logistics will be handled now and into the future.
The following will examine the top 3 benefits of using a 3pl warehouse for your business.
1. You only end up paying for the actual space and labour you need
Rather than paying expensive fees to acquire or rent an entire storage space that you may not get full use out of, engaging a provider of a 3pl warehouse ensures you can get the most value for money. This is because you will only pay for the space your stock needs to occupy at any given time and are only paying a servicing fee for the number of transactions that take place.
Having this variable rate means that you won’t lose money paying for storage space that isn’t benefiting you. This is one of the most significant advantages of using a 3pl warehouse since it prevents you from losing money on services that may never end up actually getting used.
2. You can have space and labour allotted as it is required
Any good provider of 3pl warehouses will utilise a fully-optimised fulfilment paradigm that ensures costs that occur over a certain period are minimised to the highest possible extent. This provider will take into consideration how many transactions are taking place at any given time and make sure that what you pay for is appropriately adjusted to ensure you never pay a cent more than is necessary.
This ensures that you don’t overpay for any of the attached services and don’t compromise on the efficiency of the logistics required to satisfactorily serve your customer base. You must do everything you can to ensure that the steps you take with regards to cutting logistical costs don’t end up giving your customers a poorer experience when it comes to ordering/returns etc.
3. It is scalable as your business grows
Rather than buying or renting a space that you hope will be worthwhile in the future, using a provider of a 3pl warehouse means you only pay for what is needed. This expense will expand only if your business grows.
4. Gives you more time to focus on other aspects of your business
When you outsource an element of your backend to a 3pl warehouse provider, you get to take a weight off your shoulders without compromising on the quality of service you give your customers. As long as you ensure the provider you engage has a good track record with handling the kind of goods you sell, then you should have nothing to worry about by trusting the process to them. At the same time, you can focus on other aspects of your business where your expertise matters most.