If your company is growing and order fulfillment has become challenging, a third-party logistics company (3PL) can help you scale. 3PL’s can help manage inventory, picking, packing, and shipping. 3PL’s are designed for businesses of any size and are better equipped at handling the ebbs and flows of order fulfillment. If this is your first time working with a 3PL partner, it might sound like an expensive endeavor, however, working with a local one will benefit your business in many ways.
Increased Cost Efficiency
A logistics company that is nearby can often provide services that are more cost-effective than one that is located far away. Services such as warehousing, distribution, and transportation can be done at a much lower cost than doing it in-house. Instead of managing your own inventory, you are able to store stock in a 3PL’s vendor’s warehouses with the stock shipped directly from the manufacturer. When a customer places an order, items are automatically shipped from the 3PL’s warehouse.
A 3PL allows businesses to focus on growing the business and not on the challenges of logistics. Partnering with a 3PL can reduce overall costs because the warehouse is closer to the customer base, which improves efficiency and saves money over time.
Quicker Delivery
Quick shipping is everything to customers, no matter what industry you are in. And while technology has allowed for faster delivery windows, working with a 3PL that is nearby can make for even faster delivery times. A local provider will be able to utilize their expertise, resources, and network to be able to offer a more efficient shipping process. This means you’ll be able to offer your customers an even faster delivery service.
Better Flexibility
As your business scales, so will your logistics needs. One of the benefits of working with a 3PL that is nearby is the ability to be flexible. Whether your company is experiencing a surge in demand or has a seasonal fluctuation, an experienced 3PL can offer solutions that are customized to your needs. Warehouse rents and costs are expected to increase over the next year, so when your business does experience an inflow of orders, a 3PL is better equipped to carry more inventory.
Working with a 3PL allows for inventory to be better distributed with the ability to scale up or down without being tied to a lease. This flexibility can help your business save money without sacrificing the ability to grow.
Local Market Understanding
The temptation to work with a logistics provider that offers the lowest prices is a factor when choosing a partner. However, the insight that a local partner can provide into the market is invaluable. The knowledge of a nearby 3PL can reduce transportation costs, optimize supply chains, and give insight on trends in the industry. Businesses that want to streamline their process as well as provide better customer service would benefit from partnering with a 3PL.
A Local Network
The benefits of a local network can be seen at every level of the shipping process. Local 3PL providers have relationships with local carriers and warehouses. This helps your business get the lowest cost for the best service as well as streamline logistics processes. Oftentimes, a 3PL can utilize its local network to be able to do things otherwise not possible.
And by working with their carrier networks, 3PL’s are usually able to negotiate preferred shipping rates, which leads to cost savings. Those savings can be passed on to customers by offering them free shipping.
Enhanced Communication
Good communication is essential to a successful logistics relationship. Effective communication with your 3PL will enable you to improve your shipping processes. A local 3PL can help keep lines of communication open to benefit your business, as well as let you know of any issues so they can be mitigated. A 3PL that values communication will improve your entire shipping process.
Your Trusted Partner
Partnering with a third-party logistics provider allows your company to focus on other aspects of the business while letting a logistics expert handle what they do best. A 3PL like Red Arrow Logistics can benefit your business in many ways. Our access to local markets and networks helps ensure that you are providing the highest level of service to your customers.
Red Arrow offers the scale and scope of services including air, ocean, and ground transportation to meet the budget and schedule requirements of the largest and smallest companies alike. If we can be of assistance, please email us at [email protected] or give us a call at 425-747-7914.
