February 24, 2021

Benefits Of Using A 3PL Warehouse

Using a 3PL warehouse can be a great way to manage inventory and storage and can make the shipping process far more efficient. Using a 3PL warehouse means you can avoid having to hire a space to store inventory and can free up a lot of your time as you will not need to manage the logistics of organising freight, overseeing delivery routes, managing stock levels and much more. Using a third-party can make your life much easier and can offer some real cost-savings and can make your business much more scalable.

When you’re looking for a 3PL warehouse provider it’s very important that you take the time to consider what candidates are right for you – you want to ensure that you’re getting the best value for money. Here are a few of the features you should ask potential providers about.

Can I rent only the space I require?

One of the best things about many 3PL warehouse providers is that they allow you to rent only the space you need which minimises your costs and stops you from having to hire out or purchase an entire warehouse space. Third party providers allow you to only rent the space that you actually need and will usually charge you fees based on the space you use and services you require – giving you a much more tailored service then you would get if you were trying to manage it by yourself.

Do you optimise labour and space?

One of the great things about working with a third party is that they can help you to minimise your overheads and labour costs. They have expert staff on hand who will manage your logistics but are paid and hired through the third party. This means you don’t incur the costs of hiring and training staff to manage your inventory and shipping. It’s also excellent because space is used optimally and there is no wastage when it comes to either time or space allocation – you use and pay for only what you need. If there’s a lull in your shipping requirements then you won’t be paying for staff or space that you don’t need.

How do you manage inventory fulfilment efficiently?

Woman doing an inspection in a 3PL warehouse

It’s important to ask potential service providers about how they typically manage labelling and delivering products as this can be very important to ensure that errors are avoided and that delivery is made as efficient as possible.

Can they deal with volume fluctuations?

This is one of the best things about working with a 3PL warehouse – when you keep everything in-house you are forced to pay the same costs in many cases regardless of whether or not your volume is lower. Increase in volume can put pressure on your business. When you work with a third-party company you get the benefit of working with a company that can scale immediately and respond very effectively to fluctuations in your volume.

Why use a third-party?

Third-party companies help you to deal with customer demand whilst keep your costs low. They are great for improving product handling and shipping. They are experts in logistics and can dramatically improve your efficiency and free up your company’s time and resources to focus on the things that matter.

What industries should use a third-party?

Practically every industry can benefit from this service. Shipping, inventory management and logistics can be improved by working with a third-party and this can be of great benefit to many different companies and industries in varied fields from retail, to mining, transport and much more. This is a great way to grow your business

About Gene Sullivan