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How to Use 3PL To Reduce Manufacturing Costs

How to Use 3PL To Reduce Manufacturing Costs

If you own a manufacturing company or work for one, you are probably aware of how much the costs are when it comes to recruiting, training, employment taxes, and employee benefit packages. Unfortunately, many supply chain labor markets have a huge shortage. For this reason, many manufacturing companies will outsource work to third parties or 3PLs. This can allow you to upscale your operations without spending too much time hiring and training a skilled workforce.

What are 3PL Providers?

3PL providers offer all kinds of support to manufacturers. They can provide you a way to access an outsourced workforce that is ready to implement your work techniques. This can cause your operations to increase exponentially because you will be able to concentrate more on your operational efforts rather than the aspects of training and recruiting.

While providing the workforce is one of the main ways that 3PLS provide support for manufacturers, there are still many other services they can provide including:

• Contract packaging
• Contract assembly
• Contract manufacturing
• Sourcing and purchase order management
• Courier and last-mile logistics
• Sub-assembly and parts configuration
• In-plant side replenishment
• De-kitting
• Returns processing/reverse logistics
• Kitting and assembly
• Distribution services
• Supply chain consulting

How can 3PL services help my company increase efficiency?

How can 3PL services help my company increase efficiency?There are many ways that 3PL services can give your company a huge increase in efficiency and productivity. Here are just some of the most common ways you can change the course of your business by using 3PLS.

Decreasing training and orientation times

Training and orientation times are very costly because you want to make sure all workers have the skills, they need to complete the job properly and safely. Outsourcing will give you an amazing team of skilled professionals that you don’t need to train or send through orientation programs. It will also help you reduce the costs that come from errors.

Focus more on core business processesHow can 3PL services help my company increase efficiency?

Giving certain tasks to 3PLS will allow you to focus more on the principles of your business. It will also let you give more attention to critical aspects of the business rather than focusing more on the mundane everyday processes.

Reducing employment costs

The exact costs you spend on employment will depend on your business requirements. However, having a skilled workforce brought in will allow you to save time on hiring new people and the price that comes with employees quitting and having to find new ones.

Decreasing time-intensive projects.

Since workers will specialize in certain tasks, you will find that efficiency increases and that specialized tasks are done much quicker. More work will be done in less time which is a win-win situation for everyone.

Contact American Manufacturing Solutions Today

At American Manufacturing Solutions, we are here to provide you the 3PLs that you need to make your business more efficient and more productive. We have a skilled workforce that can ensure all your products are packed and assembled with ease. Your products will reach your customers quicker with our services.

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