Many businesses operate as they did ten years ago, with outdated methods and inefficient systems. However, there is a new option that can help you get more done and grow faster than ever before, a third-party logistics (3PL) company.
3PL fulfillment services offer businesses several advantages over traditional logistics options like using an in-house warehouse or going through another shipping company. This post will discuss why new businesses should consider using a 3PL for their fulfillment needs.
The number one reason why businesses should consider 3PL fulfillment is because of the higher quality it provides. The strict quality standards and understanding of the latest technology are just two reasons why 3PLs can provide a better service, which leads to higher quality.
3PLs have strict quality standards in place for every step of the fulfillment process. From packing materials to shipping methods, each aspect has been carefully thought out by experts who know what works best for your products or services.
It ensures that your shipments are handled carefully from start to finish so you don’t have any unexpected issues. And when customers receive their orders on time as promised, they’re more likely to come back again.
Improved Customer Experience
According to Zippia, there are 33.2 million small businesses in the US. When you’re a small business, it’s easy to get overwhelmed by everything that needs to be done. You might be tempted to try and handle everything yourself, but you want to take on only a little and risk burning out your team members or missing out on opportunities because you need to be more relaxed handling logistics.
A 3PL fulfillment service can provide an additional layer between your customer and their order information. When customers place an order with their preferred retailer, they’ll have yet to learn where their product comes from, and neither will anyone else. It helps maintain brand loyalty while ensuring that everyone involved in the transaction has a positive experience.
Lower Cost and Expense
According to The Motley Fool, small business owners spend $35,000 on average in their first year. One of the most critical aspects of 3PL fulfillment is that it can help you save on costs and expenses. It is a big deal for small businesses, which often need more money to hire employees for things like packing and shipping.
By outsourcing these tasks to third-party logistics companies, you can save yourself both labor costs and money spent on equipment like boxes and labels.
If you’re looking at reducing your operating expenses in any way possible, working with a 3PL will be beneficial in terms of lowering your overhead expenses as well as reducing how much time employees spend on these tasks each week. They’ll have more time for other things like sales or marketing activities.
If you’re a new business just starting and need more capital to invest in an entire warehouse or fulfillment center, 3PL fulfillment can be an attractive option. Because there is no need to purchase equipment or hire workers, this method allows you more flexibility about scaling up or down as needed.
This increased flexibility also applies when adding new products and locations for shipping purposes. It will be fine if your business snowballs and needs additional space for inventory storage or distribution centers.
Increased Productivity and Speed to Market
Speed to market is a word used in product development to describe how long a business takes to develop an idea, then introduce it to its target market. 3PL fulfillment is an excellent option for new businesses that want to get their product to market faster. A 3PL will help you launch new products, send them where they need to go, and improve your supply chain to reach more markets in less time.
3PLs can be especially useful when working with small batches or custom orders because they have the expertise required to handle these projects. They also offer 24/7 support and have access to more resources than most companies do on their own.
3PL Fulfillment Can Be a Great Option for Your Business
A 3PL provider can handle the logistics of your business. It can be beneficial because you don’t have to worry about hiring and managing employees, finding warehouse space, or purchasing inventory. Instead, you can focus on growing your brand while the 3PL takes care of these tasks.
The fulfillment aspect of a 3PL is also an excellent choice for startups looking for help with shipping their products. If a startup has just launched its first batch of products and wants them delivered quickly, consider using one such company instead of doing everything itself. Especially if there are few resources available at this stage in their development process.
There are many benefits to using 3PL fulfillment for your business, but one of the biggest is that it helps you grow faster. By outsourcing some of your operations, you can spend less time worrying about inventory and more time on what matters most, your customers.