A growing company calls for supply chain solutions that will allow growth and expansion to happen. Unfortunately, a lot of companies will find that expanding requires significant investment in new infrastructure. Trying to expand into new markets often means hiring new staff, buying new warehouse space, purchasing more stock and taking on more logistics challenges. Luckily, it’s possible to outsource logistics to a 3PL company and there are a lot of benefits in doing do. Here are a few signs that it might be time to hire a 3PL provider.
Your costs have increased
A lot of businesses will see their costs rise as they start to expand. Growth usually means a growth in labour costs, equipment costs, facility costs and other costs. 3PL providers provide scalable solutions and cost effective options. By working with one companies avoid the need to invest in new staff, facilities and equipment which can help to keep costs to a minimum, they also free up more time to devote to money-making core functions and benefit from the discounts that 3PL providers are able to leverage.
Your team is too busy
If your business is struggling to keep up with demand and everyone is overwhelmed with the workload, then that is a good indication that you need to outsource to a third party. This can free up a lot of time and will allow your employees to focus on operations rather than warehousing concerns. 3PL providers are experienced with managing logistics and will keep things running smoothly whilst you focus on the important things.
Complaints are increasing
If you’re experiencing an increase in complaints from your customers, then this is a clear indicator that you may need to consider outsourcing to a 3PL provider. Generally, as volume begins to outpace your logistics capabilities complaints will begin to grow and more issues will arise. Outsourcing to a third party means that volume can be managed more effectively. Most are very saleable and capable of handling sudden increases in volume or demand. Outsourcing means that the needs of your customers will be better looked after whilst you focus on business growth.
You’re experiencing inventory issues
If you’re noticing problems with you stock then this could be a sign that you need to outsource to a professional provider. They will keep things in good order and make sure that you inventory accuracy is properly reported, that stock levels are well managed and that any obsolete stock is removed. Outsourcing can mean gaining improved visibility over your stock as well as reporting and analytics insights that you would not have access to in-house, this can help you to improve your inventory management.
Reducing risk
Managing logistics involves a lot of costs. Warehouses require attention to costs such as workers’ compensation and other liabilities.
Choosing a provider
Finding a provider that works for you is about identifying the issues that are causing you problems and finding an outsourcing solution that can help. Many providers offer scalable solutions and can tailor their services to meet your needs. That might involve looking after a few parts of the logistics process, or the whole thing. It’s worth it to speak to an experienced company to try and figure out what is a good idea for you and to investigate what the potential cost savings for your organisation are.
Outsourcing logistics makes a lot of logical sense; it frees up your business to focus on operations and some of the more important functions within the business. It’s also one of the better ways to expand, without investing in infrastructure.
