Running any kind of business where supply and demand is a factor requires you to have a robust logistics solution in place. This means that you have a backend process that is optimised to provide the most efficient logistics and ensure that products are kept moving and reach customers as quickly as possible.
One of the best ways to achieve this is to hire a 3PL provider who will be able to take care of your backend for you and ensure that you have the most optimised process possible. While it can be tempting to try and handle all of this internally, it is much better to go with a third-party.
The following will examine 3 reasons why 3PL is the best option to go with.
They have experience
Hiring a 3PL provider makes a lot of sense simply because they are a company that is dedicated to handling backend logistics. What may be just one element of your business is their entire business model, and they are experts at that particular business function.
If you don’t have a lot of experience with warehousing and logistics, then you absolutely need to hire an expert to handle it for you. Engaging a provider of 3PL is the best way to go when you want cost-effective expertise when it comes to the handling of your backend logistics.
They’re cheaper than doing it internally
The biggest reason that companies hire 3PL providers is that they are cheaper than doing the job internally. This is because of the relationship between warehouse space and the need for your inventory.
If you buy your own warehouse and hire your own warehouse workers, you need to make sure they are giving you value for money. If you have a lull period, then you won’t be able to scale back your spending as easily as you would with a 3PL provider.
When you outsource your logistics, you only pay for what your company actually needs at the time rather than capitalising in infrastructure you can’t use very often. Instead of every single retail company having their own trucks and warehouses, they outsource this to a few firms that manage multiple clients.
This is simply a much more efficient use of resources for everyone and is undoubtedly the reason why 3PL is so important as an industry. Even the biggest companies will sometimes leverage the services of a third-party if and when they are needed to fill a gap.
They take the problem off your hands
Managing inventory and logistics can be tough at the best of times, and unless you really love doing it, then you will welcome having some help. Hiring a 3PL provider means that they will take care of this aspect of your business on your behalf, which allows you to spend more time focusing on the aspects of your business you enjoy and are good at.
For example, if you got into your business because you like sales and relationships, then hiring a third-party to handle your logistics frees you up to focus on that. If you know you need to dedicate time to hiring and training staff, then you won’t have to worry about the backend logistics if you have outsourced management to another firm.
As you can see, there’s no shortage of reasons why 3PL is the superior option when it comes to having secure and effective management of your logistics. Hopefully, the above has given you some insight into why 3PL is the preferred solution for so many businesses around Australia.