Icons showing the top reasons to outsource logistics to a 3PL Warehouse

Benefits of Outsourcing Logistics to a 3PL

An optimized supply chain is a competitive advantage and an increased number of companies are realizing how they can achieve this with a 3PL partner. According to an IBIS World industry report, the third-party logistics industry has grown at an average rate of 5.2% from 2015-2020. The rapid growth in e-commerce and new technologies has created high competition for suppliers causing them to turn to the help of 3PLs for logistics solutions. There are several benefits in addition to gaining a competitive advantage that a 3PL can provide.
Time Savings - Being Able to Focus on Your Core Business
One of the greatest benefits of outsourcing logistics operations to a third-party logistics provider (3PL) is the time it frees up for companies to focus on their core business. Companies that partner with a 3PL can focus on growing their company knowing that their logistics operations are being handled by professionals.
Logistics Industry Expertise and Advanced Technology
A partnership with a 3PL vastly expands the expertise of a company’s team. A 3PL acts as an extension of their clients’ business and can grant them access to a wealth of industry knowledge and technology. 3PL partnerships eliminate having to handle complexities like retail compliance requirements or invest in expensive resources like real estate. Logistics professionals have advanced technology, efficient processes, and strategic recommendations that can improve their clients’ supply chain management.
Scalability and Expansion Opportunity
When using a 3PL for inventory management, opportunities to scale and grow are at hand. One example is during peak selling seasons. A company may have a high demand for a short period of the year and not want to invest in real estate and staffing to meet the warehousing, distribution, and fulfillment requirements for that short period. A 3PL can provide the resources their clients require to meet demand during their peak selling seasons and as they grow their businesses. Clients can develop a coordinated omnichannel fulfillment strategy managed by their 3PL as they gain more retail trading partners and/or expand their presence online.
Access a Network of Supply Chain Solutions
A 3PL partnership can give businesses connections to a vast network of supply chain solutions. Most 3PLs have facilities in a number of strategic locations or have business partnerships that can provide needed services in various locations. They often have partnerships with transportation companies, packaging companies, industrial real estate companies, market data analysis companies, and more. An experienced 3PL can connect clients with a reputable company for nearly any supply chain service they may need.
Improved Customer Satisfaction
Consumer expectations are high when it comes to fast delivery. The bar has been raised by
e-commerce giants like Amazon, causing consumers to expect packages on their doorstep within two days. Outsourcing to logistics professionals and using their technology, proven processes, and strategic facility locations ensures the customer’s expectations are met. Utilizing a 3PL allows businesses to allocate more time toward developing top quality products and five-star customer service, which also contributes heavily toward customer satisfaction.
Efficiency and Cost Savings
For 3PLs, logistics is their core business. They work to continuously improve upon their processes and offer cost-effective supply chain solutions. Partnering with a 3PL ensures efficiency without having to invest time and money into developing an in-house logistics team and strategy. 3PLs lower costs for their clients by removing the need for overhead, facilities, equipment, technology, and labor. They can often source additional services/products for their clients at lower prices through relationships with other companies in the industry, such as transportation and packaging.
Risk Management and Agility
The recent pandemic has shown how important it is to have an agile supply chain. Health and safety orders caused a significant number of brick-and-mortar sales to shift to e-commerce. This led to a considerable spike in demand for Amazon FBA. Sellers relying on FBA to fulfill their orders were hit with processing delays and storage limits in fulfillment centers. Many sellers started looking for alternatives to FBA, but unfortunately, lost out on sales during the process. A 3PL can prevent issues within the supply chain through flexibility, stability, and visibility. Businesses using a 3PL warehouse have options when it comes to the management of their inventory and can shift operations in response to problems and opportunities.
Benefits of Partnering with Beyond Warehousing
Beyond Warehousing is a values-based full-service 3PL warehousing solution located in the Kansas City Metro area. With our sister companies in the NorthPoint family, we provide an end-to-end supply chain solution. Our understanding of foreign markets and international trade is built upon years of operation across thousands of global ports. Our values orientation, commitment to data-driven decision-making, and relentless drive to optimize and innovate truly differentiate us in the marketplace.

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