SHOULD YOU OUTSOURCE YOUR INVENTORY AND PRODUCT FULFILLMENT OPERATIONS?
“The answer is a resounding yes, and here are four reasons why making the decision to outsource selected supply chain functions and processes to a Third Party Logistics (3PL) company is a smart choice for a growing company.”
- It makes your business inalienably adaptable. As your business develops, you don’t need to stress over including new systems, stock controls and hardware. As your shipments expand, it’s just a question of expanding the stock at your 3PL providers location.
- Outsourcing decreases order fulfillment time. Generally, the companies that specialize in order fulfillment have warehouses located near major shipping hubs and ports. Subsequently, all shipments to clients regardless of where they live normally takes lest transit time.
- When you outsource inventory and product fulfillment operations it allows time for you to focus on advertising and developing your business. Keeping up and sorting out your own stock can be a major pain and take up a critical bit of your time. By permitting a 3PL company to assume control, you can center your endeavors on enhancing your business.
- You can also expand your business to other nations. Making international shipments can be a hassle with the costs and paperwork involved. A company that provides third party logistic services will have the experience to handle your international shipping. By outsourcing your order fulfillment to a 3PL company, you no longer have to worry about anything other than sourcing your items from a supplier.
Here are a few compelling and financially-wise reasons why sub-contracting staffing and using your company’s expertise in auxiliary functions might be your best move this year.
- Hosting services on location versus at a third-party facility allows a plant manager to monitor performance hour-to-hour, day-to-day.
- Your expertise and resources are not optimal in-house to manage a manufacturing or distribution center.
- Reduction of in-house employees means a decrease in payroll costs and related expenses.
- Capability to ramp up or down allows you to keep up with business cycle fluctuations.
- Access to supply chain professionals with years of experience provides a competitive advantage over your competitors.
- Improve the efficiency of your business’s fulfillment and supply chain processes.
- Benefit from advanced technologies and warehousing software without the upfront investment.
- Maintain higher safety, quality, and efficiency standards.