If you run a growing business with increasing sales volumes, sooner or later you will face a tough decision to either outsource your distribution or do it in house. There are a lot of factors to consider including time, cost, and expertise. As a general rule, you want to focus on the core competencies of your business and leverage 3rd party agencies for activities that require specialized knowledge. Here are the top 3 reasons to outsource your distribution to a 3PL partner.
- Cost Efficiency
A good 3PL partner is committed to ongoing cost reduction through continuous improvement. It develops and implements processes that reduce waste of resources while making your supply chain even better, including assets utilization, inventory, shipping, labour, and other costs associated with distribution. This requires specialized knowledge of supply chain which can’t be attained in-house.
- Improved Service
A 3PL partner focuses on distributing your product in the most effective way possible. A 3PL demonstrating a good performance record in terms of KPIs such as inventory accuracy, order fill rate, and on-time delivery will ensure that your end consumers are satisfied with their shopping experience. Furthermore, a great supply chain partner will offer a broad variety of value-add services (VAS) including high value product delivery, certified technicians, kitting and packaging options, etc. This will result in greater consumer satisfaction with your service, and greater loyalty to your brand.
- Focus on your Main Business
When you have to take time out of your day to focus on shipping and distributing your product, you may be obstructing the growth of your brand. Rather than worrying about finding and operating distribution facilities, creating and implementing supply chain processes, managing warehouse labour, implementing and supporting IT systems, organizing and managing transportation routes, you can rely on an experienced 3PL partner and focus on your brand.
A strategically selected logistics company can help your business develop better customer service while letting you focus on building your brand. 3PL experts are already familiar with the most efficient logistics solutions for your business; they have teams dedicated to enhancing your supply chain. If you are thinking of partnering with a 3PL provider, contact one of our experts and discover how you can benefit from our supply chain solutions.