Whether or not a particular company needs a 3PL provider is one of the most common questions that business owners ask themselves. 3PL or third-party logistics service can be referred to as a logistics and warehouse management company that deals with the various stages of shipping, starting from picking up the goods from the manufacturer, storing, shipping, receiving at the port of destination, and sending it out for delivery. The exact functions of various logistics companies differ from one another.
Here are some signs that your business can benefit a great deal by hiring a 3PL partner:
You are a Startup
If you are only just opened doors, it is recommended that you channel your precious resources towards business development and in the sales and marketing department. These require your constant focus and concentration. On the other hand, logistics can be managed by experts. In exchange for a reasonable fee, you can ensure efficient logistics management and general peace of mind.
Demand Fluctuates Seasonally
Hiring a third party logistics manager is also the right option if the demand for your products goes through frequent seasonal fluctuations. An expert service will be better able to optimize cost as well as warehouse space to suit your unique needs perfectly. For example, you will not have to pay for warehouse space that you will only be using for a few months in the year. Careful analysis by the logistics manager will also be able to predict high demand seasons and reduce “out of stock” situations.
Warehouse Costs are Too High
A warehouse is much more than just a place that stores your goods before they are dispatched. It needs efficient and effective infrastructure and management. If you find that maintaining a warehouse is costing too much, a 3PL logistics provider can take care of this for you.
Online expansion of any business entails online browsing of products and placement of orders. The products that are ordered by customers are then to be delivered to the address provided. Most companies that offer their products online also offer national and sometimes international delivery.
You will need a professional supply chain managing company to deal with the transportation of your shipment from the manufacturer to the end customer. This includes contacting carriers, securing space, shipping safely and getting the goods to the delivery service on the other end. Some 3PL providers such as 20Cube logistics also offer additional services such as assisting with customs clearance, additional packaging, and warehousing.
Make the Decision
If you find that most of the situations mentioned above are true for you and your business, it is safe to assume that hiring 3PL providers in logistics will be highly profitable. It is very important to understand the current requirements of your business and evaluate the situation before hiring logistics providers.
You will have to calculate the cost of logistics which have to be paid now with the price and extra benefits that a logistics provider will offer. Each aspect of logistics has to be compared and the pros and cons of hiring a third-party logistics provider must be considered. In the end, the option that weighs best will be the most profitable option for your business.
20Cube Logistics is a new age technology-enabled logistics service provider and have a presence in 10 countries globally. 20Cube provides air freight, ocean freight, customs clearance, warehousing, and distribution services.