american warehouse blog

Why 3PL – Market Penetration, Profits, Customer Satisfaction

One of the biggest headaches for companies that sell physical products to consumers is logistics. In the beginning, it can be easy to fill, ship and track shipments. However, as businesses grow, they will often discover that keeping accurate inventory of all of their merchandise becomes a time-consuming process. Outsourcing to a third-party logistics (3PL) company is a great way for manufacturers, retailers, startups and SMB’s to focus less on logistics and more on core business functions that contribute to growing their profits. Using a 3PL delivers a range of benefits including saving time and labor costs, reduced capital expense, increased flexibility and access to the latest supply chain technologies.

Many businesses benefit by outsourcing their logistics to a 3PL. Are you a small to medium business that is looking to expand to a new market? Maybe you’re a startup and might have limited resources after product development and marketing. Do you have multiple locations and need to move products in an omni-channel environment? If you answered yes to any of these, outsourcing to a 3PL is a great solution.

Outsourcing to a 3rd party logistics company allows you to expand to new markets without making commitments for warehousing costs. If the budget is tied up in product development, freight, sales and IT, it can be difficult to pay for warehousing technologies such as warehouse management systems (WMS), enterprise resource planning (ERP) systems, radio frequency identification (RFID) and more. Using a 3PL will allow you access to the latest warehouse technologies and provide updates on resource supplies, product locations and real-time inventory stock levels.

Partnering with a 3PL will lower your costs, allow one to purchase supplies in bulk and distribute products across multiple locations or omni-channel environments. Are you a multiple location business? Perhaps you’re thinking about opening up your business in multiple markets. Do you sell your products online? Outsourcing allows you to centralize the supply chain and keep track of merchandise so you can focus time on product development and reaching your sales goals. A 3PL will also allow you to perform your business operations in a smaller footprint allowing the allocation of rent money for other investments.

3PL services are great for start-ups. Streamlining logistics lets you to channel expenditures and resources to business development, sales and marketing. Let the 3PL focus on getting your products to the consumer allowing you to focus on getting the word out and delivering exceptional service — ensuring a great customer experience.

The decision to build a partnership with a local 3PL gives your business protection against seasonal spikes. Is your business affected by seasonal trends? Partnering with a 3PL will allow you to stock and purchase materials in bulk or store product until it is needed. Using a local 3PL will ensure that products are always ready to ship giving your consumer shorter lead times and edge over the competition.

Of course, every business has unique needs. For more information, contact American Warehouse to see if partnering with a 3PL is the right move for your logistics needs.