Why Outsource Warehousing & Distribution to a 3PL Provider

Posted by Kelly Anderson on February 15th, 2019

Do you know that the most critical aspect of any business is the warehousing and distribution strategy? A third party gives access to the entire gamut of supply chain & logistics to the outsourcer.

Especially for small startups that are looking to make themselves visible in new areas, 3PL providers give various options to businesses. There are a plethora of distribution and transport companies near me and you can also find one easily. Are you still thinking whether it makes sense for you to outsource? Then

Here Are Some Key Reasons to Outsource Warehousing & Distribution to a 3PL Provider-

• Avail Access to Industry Expertise

Leverage a 3PL provider for their expertise, and know how the strategic benefits realized by outsourcing within the industry. Outsourcing enhances your overall efficiency and allows you to focus on your core business. Moreover, a 3PL provider knows how to serve B2B and B2C distribution channels.

• Avail Innovative Solutions
  • Electronic Data Interchange (EDI)
  • Transportation Management Systems (TMS)
  • Warehouse Management Systems (WMS)
  • Radio Frequency Identification (RFID)

These integration capabilities are basically tech solutions that create streamline supply chain processes and add supply chain visibility. Also due to the huge information transmission and data requirement, big distributors provide barriers to less sophisticated businesses.

These large retailers are no longer off limits to any company.  In addition to his, powerful TMS and WMS can add great value to any business. You can avail real-time access to the information related to the inventory and forecasting upcoming trends.

• Get Flexibility You Need to Scale Profitably

A 3PL provider allows you to be flexible so as to scale and set up your business model. You will be able to service diverse or new customer bases. Check out a few examples of flexibility from outsourcing-

• Flexibility Within the Four Walls of a Warehouse
• Flexibility in the Supply Chain
• Flexibility in the Transportation Network
• Add Supply Chain Value by 3PL

You can avail various value-added activities by leveraging a 3PL that include-

• Consolidate Order & Cross Docking

Cross-docking allows a 3PL provider to instantly receive and divert the product to the next phase of distribution. Whereas consolidation tactic is utilised by a 3PL that will eventually reduce costs and labor.

• Returns Processing, Reverse Logistics, Inspection

Approximately 35 to 40 percent of apparel orders are returned back and are very common in eCommerce fulfillment. For the successful return to the stock, a 3PL will handle the entire process, and ensure that the client either gets a refund or replaced item.

The Bottom Line

For the effective management of building and maintaining your supply chain, a 3PL provider will provide a proper road map. Although finding transport companies near me is not difficult but choosing a reliable one is wise.

You may also read: Choosing the Best Freight Forwarding Services for Shipping