Title: Why Choose 3PL Company?
15 Logistics Problems that can be Solved Using a
3PL Company If you run a business that requires
shipping and transporting goods to customers,
chances are you need to focus on product quality
along with pleasant customer experience. Collabor
ating with different service providers for
different processes can negatively impact the
business, and managing all the logistics process
such as distribution, packing and transportation
all by yourself can be very intimidating. That's
where Third-party logistics (3PL) can offer some
assistance. Let's look at the most common
challenges faced by the businesses in logistics
and how a 3PL company can help in facing those
challenges. 1. Space restrictions The basic
nature of any retail, manufacturing or any other
industry is that it will require space to store
their products before they are removed for
delivery. Goods need to be stored somewhere safe
before they are moved further in the supply
chain. Owning warehouses individually requires
maintenance and labours which can be
unaffordable for the small businessman.
If your business is expanding more than the
warehouse capacity, a 3PL company can provide you
with long term solutions for warehousing and
distribution to facilitate your business
growth. 2. Labour Shortage Hiring and retaining
the skilled workforce in the supply chain is
among the biggest problem faced by businesses.
More than 50 of the business owners find it
difficult to manage the need of the staff to
enhance customer satisfaction. You might find
yourself unable in the process of recruitment,
but a 3PL company has all the resources and
skills required to recruit and retain the
employees on your behalf. With the increasing
expectations and customer demand, a 3PL company
can help you to retain a dedicated team that can
support you to ace the competition.
2- Increased Volume of Orders
- With the increasing online shopping trends,
businesses need to be on their toes by keeping
most of the products in stock for online
delivery. A sudden change in trend can lead to
bulk orders at any time. Catering to these bulk
orders requires increased investment for storage
and packing. - A right 3PL company can help to expand this
online business by managing the huge order
quantities and by successfully collaborating
with various suppliers and vendors. - Lack of Transparency
- Increased demands and supply chain processes have
made the logistics operation complex. Tracking
the movement of goods and raw material without
the help of any technology is nearly impossible.
Having advanced software technology often
results in the poor return of investment due to
under usage of the various applications. - A 3PL service provider can help a business to get
the most out of the already installed technology
by tracking the real-time status and
requirements of goods and raw materials. - Unnecessary Costing
- Traditionally, a business should invest in
warehouses, managing own fleet of vehicles,
labour workforce. But in reality, a business can
prevent all these unnecessary expenses by taking
the services of a third-party logistics
provider. - Cutting down unnecessary expenditures can be the
first step towards upgrading the business and
concentrating on core activities of trading or
manufacturing. It also protects the business from
excessive loss due to shutting down of any
division. - Final Thoughts