Today’s customers have high expectations from the companies they buy from. The “Amazon Effect” is stronger than ever, as consumers rely more on e-commerce for everyday shopping and grow accustomed to next-day or even same-day delivery. How quickly shoppers receive their orders is linked to overall customer satisfaction.
As your business grows and you face the welcome challenge of increased customer demand, you need more support to manage the storage, transportation, and fulfillment of your products.
By working with a third-party logistics (3PL) company that provides customized warehousing and distribution solutions, you can streamline and scale your business while keeping your customers happy.
3PLs are valuable partners that a growing number of companies rely on for cost control and efficiency improvements in their supply chain. According to a 2017 study, 90% of Fortune 500 companies operating in the U.S. used the services of one or more 3PL provider, an increase from 46% of companies in 2001.
What Are the Benefits of 3PL Warehousing & Distribution?
When you work with a 3PL provider that combines warehousing and distribution services, you remove logistical obstacles and simplify your business operations. Here are some of the main benefits:
- Outsourcing storage & shipments
The more your inventory grows, the more labor- and space-intensive it is to receive, store, pack, and ship orders with in-house staff. During busy times of year, you may run out of space or employees to accommodate warehousing and distribution. A 3PL partner takes responsibility for each step of this process so you and your team can focus on more important priorities.
- Time savings
A 3PL provider specializes in warehousing and distribution services and has exiting relationships with a network of manufacturers, importers, exporters, wholesalers, and transportation companies. Their team already has the right people and processes in place for successful execution. If they encounter any problems, they have backup plans ready to deploy so your operations can keep running smoothly.
- Lower costs
When you work with a 3PL company, you get to take advantage of their resources without carrying the overhead costs. You can increase or decrease the amount of storage space or distribution management you need depending on demand, which gives you flexibility to grow with lower risk.
Interested in learning more about 3PL warehousing and distribution solutions? Contact Exegistics.