There is a misconception floating around that 3PL is mainly just for new businesses. However, new businesses and long-established businesses alike experience growing pains. These growing pains tend to show up in one common area, for all businesses.
That’s in the management of inventory but more specifically, inventory management that keeps up with the demand. This is a great problem to have, as it means the business is growing, and just unable to keep up with their orders. Often times, this is where the help of a 3PL or Third Party Logistics provider is most valuable. Third Party Logistics is simply the outsourcing of any part of your logistics needs. That can mean warehousing, packaging, and assembly, or the movement of your goods.
Grow without the Pain with 3PL
One of the major competitive advantages for using a 3PL provider is the ability to grow without physically expanding your perimeters. The cost for a business that chooses to expand is significantly higher than the cost of a company that chooses to outsource that same task to a 3PL provider. Consider a factory that would need to purchase a new plot of land, build a warehouse and lastly, hire drivers for their newly purchased fleet. The expenses for this type of expansion are extensive. If that same factory chooses a great third-party logistics provider to pair with, the cost of investment will be far less. In addition to lower costs, there will be much less time lost in all of the planning that would come with the new infrastructure and construction time. This time saved can be used to focus in on new growth and fine-tuning their customer service and satisfaction.
3PL Offer More
Often times, a 3PL provider will offer more than just the basics, allowing for great customer satisfaction. These added services may equate to more than what you originally offered your clients. Many of these third-party logistics providers are focusing in on tailored and customized services for their clients, allowing for budgets of all kinds. Its easy to get lost in the concept that 3pl’s only offer warehousing and transportation of goods. Today’s market is competitive, and many offer VIP packages and add on services. Just ask what they offer.
A business utilizing the assistance of a 3PL can expect to have great tracking ability on their goods. Often, this saves on technology costs, alleviating the need to purchase custom logistics software because the 3PL provider already has it. This same software you saved on, allows you to see exactly what is going on with your goods. This transparency gives great peace of mind.
Finding your partner
These are just a few areas where a 3PL provider can help your business through growing pains. There is a reason so many successful companies are pairing up with a trustworthy third party logistics provider because it works. American Manufacturing Solutions is one such provider that is eager and ready to take on your logistics needs, whatever the shape and size. Let them use their resources to increase yours.