If you are not seeing profit and efficiency in your self-shipping and warehousing costs, or are starting a new business and looking for retail logistics services, third party warehousing can be the best solution to meet all your requirements. A good 3PL provider will serve as a strategic partner, bringing efficiency to your supply chain and providing flexible solutions for all your business needs.
How does a business owner handle Third Party Warehousing & Fulfillment?
You can either
1. Choose drop shipping options to fulfill your orders.
2. Fulfill your own orders, either independently or with the help of staff.
3. Hire Third-party logistics who will handle product storage, production, and delivery.
Need for Third-Party Warehousing & Fulfillment
The most common benefit of outsourcing to a 3PL company is that you don’t have to store or package anything by yourself. Here are some more reasons:
No need to pay staff
If you are shipping and fulfilling your orders, you will need to hire staff to help out as your business grows. This is not only expensive but also time-consuming as you need proper staff management. Hiring third-party logistics will do all the work for you, from storing to packaging to shipping your orders on time. It is a cost-effective and time-saving option.
Focus on your business growth
Third-party logistics handle everything on your behalf thus allows you to focus on product sourcing, sales, improving your production rate, and marketing.
Save Money With 3PL
A third-party company operates at a much larger scale than you may be able to, taking advantage of expert supply chain management only a bigger operation benefits from. They leverage combined shipping volumes that will bring down their costs. Moreover, with a third party company, you don’t need to invest in renting warehouse space, equipment, and technology to manage your business.
Avoid long-term lease
Renting warehouse space usually requires a long-term commitment. Paying month to month for the amount of space you use is a much more efficient and cost-effective option as your business scales. Why pay for space when your industry is off-peak?
When to Switch to Third-Party Services and Order Fulfillment Company?
In the beginning, most companies will fulfill their own orders and gradually switched to a third party service as needed. But when should you start? Here are a few indications which might tell you that when it’s time to switch:
1. You need more space or logistics
With increasing sales, you need more stock of products and therefore you need to rent a bigger space to handle your increased inventory. So by choosing a third party warehouse to handle the storage of products and packaging material for you, you can spend time to focus on growing your business.
2. Your business demand is seasonal
Many companies are seasonal, so if you see your sales doing better in peak season or worse at certain times of the year, it doesn’t make sense to pay the staff and renting the space for the entire year. When using 3PL logistics, you only pay for the space you need which can save a lot of your money.
How Tenax Transport Can Help?
If your company is seeking a partner for third party warehousing services, Tenax Transport is the right place for you. With over 1 million square feet of warehouse space, effective costs, flexible agreement, and modern tools and software, Tenax Transport is the ideal warehousing partner for the company of all sizes.
So what’s next? Want to know more about working with a third-party logistics company? Read more:THIRD-PARTY LOGISTICS WITH TENAX TRANSPORTATION