From start-ups who are just setting foot in the market to well-established ones who seek new opportunities, the strategy of outsourcing services will work wonders for your business. We’ve noticed a rise in the number of companies that are opting to outsource warehouse and distribution services, which further allows them to focus on other core areas of their business. Below we discuss the top five reasons why you should outsource the services of a warehouse and distribution company.
Shipment Amalgamation
When you choose the services of a 3PL provider, all your warehousing and transportation needs are combined and served under one roof. As such, multiple shipments to various locations can be achieved in a very time-efficient manner, rather than scattered logistics. Some 3PL providers also offer discounts on shipping, which works as an economic benefit to your organization.
Cost-Effective Solution
The process of acquiring additional space and infrastructure for distribution surely needs a significant amount of capital as investment. Those who opt for this route risk tying up their cash flows, further creating financial instability for the company. Further investments are always a necessity for companies who seek to grow and expand. However, when you seek to outsource the services of a third party, you eliminate these risks and allow expansion without having to invest further.
Experience
There are many entrepreneurs and managers who don’t have adequate experience or knowledge in the supply chain, which makes it a very challenging process for the company. A warehouse and distribution service provider, on the other hand, will have in-depth knowledge and proven success in this domain. You can take advantage of their extensive knowledge and experience and make the difference between pleasing customers and losing customers.
Easily Scalable
As your company steps into a new market to introduce new products or the season changes, inventory levels, and the need for transportation will surely increase. While it may not be possible to put a number on how much warehouse space would be needed, or the levels of distribution services you would require, outsourcing will make it easier for you to scale distribution as and when there is a change. Moreover, outsourcing these services helps in mitigating increased costs and gives you better control over the inventory levels.
Advanced Technology
Small businesses that lack the required funds will find it almost impossible to invest in advanced technology, further creating a severe barrier to those who seek to enter the market. When you outsource the warehouse and distribution service provider, you can efficiently meet customers’ demands without having to put in additional investments. With radio frequency identification and other tracking methods, you will be able to offer customers a pleasant experience with your company. Access like this undoubtedly gives companies a competitive edge, irrespective of the marketplace.
