3PL is not just for big businesses with large budgets. It is also often a cost effective solution to smaller businesses looking to scale and optimise their business. Want to know if it is the right option for your business? Read on.
When done right, 3PL services can be cost effective. Think for example about gift pack assembly during events like Christmas. Among other things, a 3PL service will eliminate your concerns about getting a temporary warehouse space, security, infrastructure and quality control processes in place.
Are your infrastructure and systems up to date and reliable? Are you focussing too much energy on logistics and not enough on sales and building brands? Do you need more effective quality control processes? Are the costs for running your logistics getting out of control? If any of these worries sound familiar to you, your company probably needs 3PL services. Benefits of using a warehouse management system.
Costs – Avoid partners that charge fixed costs for basics like warehouse space and staff. Whilst this gives you certainty on what costs would be each month, you won’t benefit from quiet times and you will be charged even when you are not using all the space. What is a fair way of calculating warehouse fees?
Safety – Ensure they have facilities to keep your products safe. Do they have effective security, health and safety processes in place? This is particularly important for higher value and sensitive products.
Systems – There is no excuse for a third party logistics company not to make use of the latest technology to drive processes. Without proper systems in place, delays and errors are inevitable.
Initiative – The ideal partner is proactive. They look after your interests and bring efficiency to your business. They work on more than what they have necessarily been tasked with.
There are hundreds of 3PL partners out there. It is all about finding one that works for you.