3PL, otherwise known as third party logistics is a service that allows you to outsource operating logistics from warehousing to distribution, enabling you to concentrate on other aspects of your business. Third-party logistics companies provide a variety of services related to supply chain logistics. This covers storage, warehousing, selection and packing, stock forecasting, order fulfillment, packaging, and delivery. If you’re here, you might be considering using 3PL for your business. We want to make it easy for you to decide if 3PL is right for your company, so we’ve put together helpful pros and cons list to help you get started.
If you’re a new company, who can take care of your logistics better than a company specializing in it? Warehousing, fulfillment, and distribution come with their own major challenges. Handing them over to the experts can really make a difference in how you operate and it keeps you focused on increasing your overall value to your customers.
When it comes to warehousing, it may be a major cost-saving move not to have your own warehouse and employees dealing with the supply chain. Not to mention a specialist may also offer special services like inventory forecasting to help you even more with your customers’ needs.
Another benefit is in international logistics. If you already are or are just hoping to become a global brand, there are special challenges that come along with international shipping. A 3PL will already be well versed in these challenges and can help you scale to reach a global audience.
Basically, 3PL can help your growing business focus on the important things. Why waste time, energy and finances dealing with supply chain management yourself when you have an expert already on hand waiting to help you?
Drawbacks of 3PL
Third-party logistics may not be right for every business. First of all, it’s true that instead of the many, smaller investments you’ll make over time if you attempt to handle your own logistics, you’ll be making one larger investment upfront when you hire a 3PL. Most customers don’t mind this upfront cost compared to all the benefits they receive, but it may be prohibitive to a company without any capital.
You’ll also give up some of the control you’d otherwise have over the shipment process. It can be difficult for some business owners to give up this control and let a third party handle everything from a distance. Overall, if you’re a small to medium-sized business that doesn’t already have an in house logistics expert, we think the benefits of 3PL far outweigh the drawbacks. You’ll be amazed at what you can accomplish when you hand the logistics over to someone who knows what they’re doing.
At American Manufacturing Solutions, we have years of experience in the logistics field and we want our experience to work for you! Talk to one of our supply chain experts today and see for yourself the benefits 3PL can have on your growing business. To find out more about how our 3PL solutions can help your business, please contact us today!