Reasons To Outsource Warehousing Services To A 3PL
If you run a small business, you may be in a dilemma of whether to engage a 3PL company to offer warehousing services. In most cases, you may be worried about extra expenses and the need to maintain control over all aspects of your business. This extract details the benefits of engaging a 3PL to offer warehousing services. It also discusses the considerations you should make when hiring these companies.
Streamlining Your Business Operations
Most small business owners lack the experience required to balance the various business tasks. At any moment, you will be thinking about product development, marketing, employee welfare, business expenses and competition. Outsourcing warehousing functions allows you to concentrate on more critical business functions. It is usual to be worried about the safety of your products. However, most 3PL companies secure their warehouses with state-of-the-art security. Besides, they insure and give guarantees on the safety of your products.
Cost Savings
Below are a few ways to save costs when you outsource warehousing services:
- You no longer have to lease floor space to store your inventory.
- You no longer have to incur the costs of running a warehouse. They include labour, amenities and equipment.
- You will have added value along the supply chain. Most 3PLs offer extra services such as packaging, assembly, inspections and order fulfilment in the warehouses.
- You save money on insurance. Your business takes a considerable risk when running a warehouse. For example, an employee could trip or fall off a ladder. This will increase your insurance premiums. Once you outsource the service, you transfer these risks to the 3PL.
Convenience
Most 3PLs use modern technologies to run their warehouses. For instance, they use warehousing software to track the number of items you have in stock. This system will send real-time reports to your production team or suppliers to ensure you have the right amount of stock in the warehouse. This convenience makes it easy to run your business. Besides, you can use these reports to predict the high and low seasons.
Consider the following when engaging a 3PL warehousing company:
- Examine the company resources to ensure that they can offer warehousing services. For example, check the available storage space, employees and technology used inside the warehouse.
- Consider companies that can easily increase or decrease storage space on short notice.
- Understand the company's terms and conditions. For example, what services will the 3PL provide? What assurances does the company give? Under what conditions would the company terminate their services?
- Ask for a quote to ensure you can afford the 3PL's services.
Outsourcing warehousing services allows you to streamline business operations, make savings and enjoy convenience. Consider the recommended tips when choosing a 3PL. For more information, contact a company that provides 3PL logistics warehousing.
