Could you be one of the many companies who is losing profits by managing your own warehouse?
A few questions to ask yourself are:
- Is your labor staff working efficiently?
- Are you short or overloaded with staff?
- Do you have too much space?
- Are inconsistencies in your workflow causing lower profits in your ledger?
Scaling your labor force and space to meet fluctuating demands can result in lost profits and less than exemplary customer experiences. If you are experiencing numerous workflow “hiccups” and need to streamline processes, you may want to consider partnering with a 3PL. Here are just a few of the ways a 3PL can reduce waste in your warehouse management costs.
Reduce Labor Costs and Use
Sixty-two percent of companies have difficulty finding and keeping skilled, qualified, and dependable workers for their warehouses and distribution centers according to a recent study by Datex. This study also showed that with these same companies, 45 percent struggled with labor costs and 57 percent needed to increase workforce productivity.
Multi-client 3PL’s hire and maintain a large labor force to meet the continually changing needs of their clients. They have the resources not only to find the right employees but ones that will be dependable and operate at high-efficiency. With a stable workforce, there are no missed or delayed shipments. They support your brand and help build brand loyalty. All without the muss and fuss of hiring, managing, and scheduling.
Lack of Standardization
3PLs are the best practice masters of their craft. Using data collection and analysis tools, they personalize supply chain to your needs. This ensures the most efficient, fastest, and cost-effective methods are used. They use sophisticated management software to encourage the best workflow strategies and find problems before they happen. They also offer transparent tracking which is especially vital for industries like Automotive, Aerospace, Pharma and many other time and information critical industries. 3PLs make distribution easy and they keep companies compliant with industry standards.
Shifts in Product Demand
A 3PL partnership is ideal for companies experiencing scalability issues. Seasonal inventory spikes and shifts can cause warehouse issues. This partnership is especially valuable during these periods, most notably by offering flexibility in space and labor resources. This is one of the places where 3PLs shine. Because you pay for only what you use, you don’t end up paying for labor or space you don’t need during your less busy times. This is just smart business. When you need the additional space and workers again, your 3PL partner will be able to accommodate your needs seamlessly.
If any of these concerns affect your business, or you are getting ready to go global or increase your offering, talk to a trusted 3PL partner like JIT to discuss strategies for optimal performance in your distribution needs.