Try and tell a company in the field of distribution that managing their logistics and supply chain is just a minor detail.
The answer might be a confronting one, because it is these small details that actually define the health of a business and the longevity of the brand.
Third party logistics (or 3PL for short) has since entered the fold to be a behind-the-scenes presence for companies that need to organise their affairs on a daily basis.
Outsourcing through 3PL warehouse services was once a taboo exercise but in 2019 it is widely considered to be sound business practice.
Here we will examine how expert parties in this industry offer enterprises tangible value.
Accurate Information Reading
3PL warehouse services deliver one piece of commercial criteria above anything else – offering accurate real time information. Due to the fact that logistics is their bread and butter, it is their capacity to track, monitor, read and assess how the supply chain is performing to the standards set out by the organisation. When there are setbacks or stumbling blocks that are hampering performance, it is up to the professional 3PL provider to identify those issues and instigate solutions. This can only be achieved if there is accurate information offered in real time to managers.
Flexible Scaling of Features
There is no hard and fast one-size-fits-all approach when embracing 3PL warehouse services as a professional third party. By their very nature this is a process that can scale upwards or downwards depending on the trajectory of the company, the listed objectives and any other external factors that can influence the project. At the end of the day the 3PL provider is simply one arm of a grander model where the business (client) and the carrier have to synchronize their efforts to package, warehouse and transport stock from one location to the next. If there are ways and means of improving each phase with a greater or limited presence from the outsourced party, then those targets can be achieved.
Saves on Costs
From applying conditions and behaviours that offers a greater degree of government compliance, improves order fulfillment rates and manages inventory and stock quantities, outsourced 3PL warehouse services saves costs over the long-term. Members of a hierarchy who only take into account the hiring fees of these operators will fail to see past the new behaviours and standards that a brand can constitute across the board. Yet there are multiple short-term financial gains that can also be enjoyed, eliminating courier costs, shipping via more efficient routes and picking and packing processes that get the most out of the product’s lifespan.
Lowers Risks and Delivers Objective Insights
There is a degree of insurance that is at play when a business decides to embrace outsourced 3PL warehouse services. Due to the fact that they are somewhat at arm’s length to the operation, the hierarchy of a company can make dispassionate judgments about how they undertake their tasks and assess them on merit. The same can be said from the perspective of the 3PL specialists, as they are empowered to offer their insights that are devoid of any preconceptions or conflicts of interest that can be seen with internal departments. That scenario happens to lower the risk for the brand as they can extend or cut a working relationship without an obligation to invest in their services.
Quality of Skills
Managing logistics in these high-pressured commercial environments is not for everyone. There will be managers who are starting a new business or opening a new depot and these issues can be overwhelming. To start a new venture, brands can utilise outsourced 3PL warehouse services to educate their staff for long-term development and help the organisation begin with a fresh start.