If your business model requires you to send packages to your customers. Then you are an ideal candidate for investing in third-party logistics. Especially if you want to improve your overall performance and make time in your busy routine to focus on another aspect of your business, it might be time to consider outsourcing your supply chain to a 3PL.

What is a third-party logistics service?

A third-party logistics service or a 3PL for short is a company that you can hire to handle some or all of your logistics. When you outsource logistics to an outside company, you delegate this aspect of your business to an outside company. These companies will handle everything from logistics to storage, inventory management, packing, shipping, and customer satisfaction, and even return processing. To get more of this information stay with the od ideas.

Why you should consider this?

So, if you’ve been wondering about further benefits for your business, here are the key advantages of working with third-party logistics.

 Efficiency

First and foremost, when you outsource any part of your business, you increase efficiency. You’ll be more efficient because you won’t have to spread yourself and your team thin. The company you team up with will perform delegated tasks with the utmost efficiency because that’s their expertise. 

The expertise

When you outsource logistics to third-party logistics, you also gain expert knowledge and experience. People sometimes make certain mistakes because they lack expert knowledge. Having said that, those working as supply chain logistics experts, have the expert knowledge, skills, and tools at their disposal to improve the process and reduce any stress imposed on your business due to a lack of expertise within your business. Especially if you ship your products internationally, you need to be well-versed with international shipping protocols and different requirements across countries. 

Satisfied customers

One of the key aspects of customer satisfaction is speed. If it were possible, people would pay extra for their goods to be delivered just after they’ve entered their credit card information. But, since it isn’t possible, customers are more satisfied if their order is processed fast and shipped out as soon as possible. If you want to ensure that customers in your country are as satisfied with the service as possible, team up with national 3PL services to ensure goods are shipped from a warehouse located in your country.

 Eliminates extra costs

When you handle supply chain logistics yourselves, you need to ensure proper warehouse space, order processing tools, and inventory management and have enough employees to handle the orders, inventory, and transportation. Basically, you need to cover both ends of the supply chain successfully. But, what happens when your business fluctuates, so you don’t need that big of a warehouse or a team of five people, but just one? This is why third-party logistics can eliminate extra costs because they have these capacities. So you don’t have to worry about the manpower, storage space, or technology needed to process the orders. 

It saves you time

Time is something we never have in abundance, especially if we’re running a business. But, if you delegate tasks properly, you make more room in your day to focus on other aspects of your business. Your time becomes abundant because you won’t spend it on everything at once. 

Scale your business

When there’s a demand, you need to ensure that there’s enough inventory to answer that demand. But, when things turn and demand is on the decline, you need to be able to scale your business. 3pl won’t just help you scale your business. It will also provide you with valuable business insight so that you can anticipate a change in demand. They will also work on improving your processes with efficiency in mind and reducing any unnecessary costs and inefficiencies. 

Expand to new markets

If one of your business goals for the new year is to expand to a new market. Third-party logistics can assist you with this. They can help you come up with a new supply chain and any other requirements needed to access the new business market. They will advise you of any legal requirements, measures, or accreditations needed to ship your goods and have them delivered to a new market. 

All of these key aspects can be summed up as follows. Finding the right 3pl service for your business can help you expand your business and have many satisfied customers.