If you’re looking to expand your business, a 3pl warehouse could be just what you need. Supply and delivery chains are two of the most common areas that businesses come undone with, so having extra support in these areas to ensure proper operation and improve efficiency is one of the best steps you can take on the road to success. Today we’re looking at what exactly a 3pl warehouse is and how making use of one can help your business grow.
A 3pl warehouse is a receipt, storage and delivery hub that is managed by a third party provider. Generally located in areas where your business does not have an office or active presence, the popularity of these facilities is on the rise due to the benefits that they can provide. They are also quite useful for companies who engage in drop shipping and those who do not have the resources to manage their distribution network in house.
How Can A 3pl Warehouse Help Your Business Grow?
One of the biggest ways in which a 3pl warehouse can help your business grow is by managing your logistics. Many businesses find that they do not have the time, space or other resources to manage their entire supply and distribution chain themselves and this can often lead to growth stagnation or even the collapse of the company. By engaging expert third party assistance, however, you can avoid these issues and get your business (and products) back on track.
Another great perk and growth driver is the ability to access areas and markets that would not have been available to you had you decided to go it alone. International expansion, remote connection and more can be easily achieved with the right network, knowledge and skill set, but acquiring these in-house takes time and money that you may not have, but your chosen provider certainly will.
A 3pl warehouse can also greatly streamline your stock acquisition, holding and delivery processes allowing you time to focus on other aspects of the business. This is great for those chasing growth as it means you can centre your attention on projects that will help you expand, rather than dealing with day to day tasks that really aren’t your area of expertise.
This one may seem an odd point as third party services do, of course, cost money. The thing is though, when you’re managing your own logistics, you have the costs of renting storage space, organising delivery routes and covering the cost of transport, customs and more. By outsourcing to a 3pl warehouse, however, you’ll also be outsourcing these costs, meaning you only have to deal with your monthly invoice from your chosen provider rather than fluctuating costs and a whole host of issues.
Finally, by engaging the services of a 3pl warehouse you can greatly increase the scalability of your business. When everything is managed in-house, there is only so much growth that a company can handle before staffing, rent, logistics and more become unmanageable. Bringing in an external service provider, on the other hand, allows you to grow as far and wide as you would like while they handle many of the aspects that would have otherwise held you back. This is why very few successful multinationals actually do everything themselves and if you want to play on their level, it’s worth taking a leaf out of their book.
Now that you know how a 3pl warehouse can help your business grow, all that’s left to do select your preferred provider.