5 Ways 3PL Warehousing Can Help Your Business Grow

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Expanding your business – whether by entering new locations or introducing new products in your line – requires a reliable supply chain to ensure uninterrupted and fast deliveries. Outsourcing your complex supply chain operations can help your business to scale in several ways.

Contracting with a 3PL service provider gives you access to modern warehousing and expert assistance that, in turn, helps your business to transition smoothly through a growth phase. Instead of trying to manage everything in-house and spreading yourself too thin, outsourcing your warehousing functions means that you can focus on what matters the most.

Here are 5 ways 3PL warehousing can benefit your business:

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1.

International Expansion

Any business that needs to go global will have to rely on a large-scale logistics network to ensure deliveries to distant locations. 3PL providers maintain extensive networks around the world and are no stranger to businesses expanding into new markets.

Your regional warehousing requirements will be handled by your 3PL provider with all the legal documentation and local currency payments that need to be made at the customs port.

2.

Cost Reduction

Scaling up your operations means that your business needs space – and lots of it if the expansion is significant. Storing inventory in-house means that you need to purchase land and build a warehouse if it does not exist on the premises already.

3PLs save your short-term fixed costs for acquiring real estate by providing you with usable storage space. Since the warehouse is already there, your business will also save time, especially if you are waiting for a real estate deal to materialize.

Outsourcing your warehousing operations also means less overhead on labor and security. You can rack up these savings with sizable discounts on warehousing offered by 3PL deals.

3.

Flexible Inventory Management

We’re all familiar with how seasonal fluctuations in demand and supply can put a strain on the supply chain. Fortunately, 3PL warehousing can help you prepare for high demand by allowing you to stock goods and supplies in advance of a sales spike. You won’t have to worry about a lack of staff when such a spike happens since inventory is managed externally.

As a bonus, the third-party logistics team also adds another layer of inventory controls to increase security and reporting efficiency. The additional capacity benefits your production and sales teams while keeping your employees and customers satisfied.

4.

Detailed Reporting & Analytics

Inventory management can be super complex for large-scale operations. Tracking the presence and delivery of supplies and finished goods is a data-intensive process usually managed by 3PLs. Many 3PL companies give their clients access to online dashboards with advanced reporting features. These online systems allow you to see how your business performs and understand what process needs attention.

The ability to detect and respond to supply chain issues is a key asset to your business that makes a very strong case to consider working with 3PLs.

5.

Creating a Value Chain

In-house logistics teams in small companies can only provide a few types of logistics services, such as LTL trucking and simple packaging. 3PLs can allow your business to take advantage of modern facilities with value-added services that benefit your customers. These services include customized packaging and printing, multi-modal delivery, controlled storage facilities, marketing, and customer support, to name a few.

These services open new possibilities for product and service delivery across a range of industries. You can then set up a value chain for your company, or enter the value chain ecosystem in another market segment.

By creating a value chain with the help of 3PLs, your business will be able to deliver new and exciting customer experiences, that would otherwise be impossible.

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3PL warehousing, automotive logistics, trucking & transportation, e-commerce order fulfillment, contract logistics, and freight brokerage in Michigan
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Business Growth with 3PL Warehousing Solutions

Growth in business is not only aimed at increasing profits in the short run but also securing future business stability and profitability. However, business expansion is often fraught with both opportunities and risks.

We are confident that you can ease most, if not all, of these risks and perils by partnering with a 3PL warehousing provider like Logos Logistics. We offer professional and affordable 3PL warehousing solutions with online access to Warehouse Management Systems that provide real-time inventory visibility, while you can focus on the core activities of your own business to maximize gains.

Connect with us today to get started.