Business growth comes with many new benefits and a few challenges. Wouldn’t it be great if some of those growing pains could be felt by someone else? Well, they can when you partner with a 3PL. You can enjoy the unparalleled support and increased performance while mitigating logistical issues.
All businesses can profit from best practices that third-party logistics providers (3PLs) relay no matter their industry. Exceptionally equipped with the resources, knowledge, and experience to help businesses expand their reach, 3PLs are ideal for small to mid-size companies. Here are just a few of the reasons you should consider working with a 3PL.
Global Reach
One of the most significant obstacles to companies who want to expand their operations is being able to secure the ideal place, relationships, and partners in their chosen timeframe. Even when you can get one major task complete, like acquiring a warehouse in a foreign country, all the challenges
When working with a 3PL, you can avoid the hassle of international diplomacy, managing foreign employees, and dealing with shipping changes from thousands of miles away. With an in-country 3PL understands all the local regulations and has cemented relationships with local governments to guarantee success.
Shared Expense For Labor and Space
Cost efficiency is almost always the most prominent reason growing businesses partner with a 3PL. Instead of investing in an entire facility to take care of changing sales and inventory needs, 3PLs empower multiple customers to share the burden of labor and space expenses. Multi-client facilities result in clients only paying for space and labor they use, as they use it. For those companies who experience seasonal fluctuations or are suffering from inconsistent sales, this is a huge advantage.
Flexibility
While it may not be the first thing you think of as a benefit of partnering with a 3PL, flexibility may be one of the most valuable. When your space and labor needs increase, you just need to call your 3PL. You don’t have to hire, onboard, train, and maintain employees you may not need for more than two to three months. Your 3PL has already vetted a high-quality workforce to exceed your clients’ expectations when you need them and aren’t a weighty expense, mentally or financially, when you hit a slow patch or are in development.
Grabbing the global market, keeping profit margin high, and enjoying flexibility with space and employees are just a few of the reasons smart businesses partner with 3PLs. Keep your clients happy and your business growing exponentially with JIT.
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This post was originally published on October 11, 2017 and updated on July 8, 2019.
2 Comments. Leave new
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I work at a company that sells holiday decorations, and this means that most of our business comes at specific times of the year. We have a warehouse that we use for about three months, and then it is empty for the other nine months of the year. We are thinking about outsourcing our warehousing, and you make a great point that we will save a lot of money because we will only have to pay for the exact amount of space and labor we need.