Third party logistics (3PL) are becoming part of the norm in the modern commercial landscape.
When public enterprises have to make gains with their annual objectives, there is a need to rely upon outsourced expertise to fulfill certain phases of the distribution.
3PL warehouse services therefore become a viable option for brands that would otherwise have to invest a great deal of time, energy and finances to fund an internal department that would carry out the tasks off their own accord.
In 2019 there is a need to be flexible and smart to make headway, and this is where a 3PL warehouse service comes into their own.
Undertaking Repetitive Tasks
Domestic small to medium enterprises (SMEs) that have a limited amount of team members won’t exactly have the scope to undertake basic repetitive tasks without taking away their focus from more pressing matters. 3PL warehouse services can do anything from a comprehensive oversight and running of a distribution program to basic pick and pack functions that are key. In this setting it is valuable to have trusted and experienced workers who can repeat these tasks and allow that conveyor belt process to progress without error or interruption.
Precision on the Task
3PL warehouse services are specialists in the key functions they will list for a business. As we mentioned, that could simply work around a pick and pack structure where employees are prepped for a conveyor belt to shift the distribution according to each unique phase. Then there are brands who go a step further to include tracking software where individual items are analysed in real time. Other providers will offer a comprehensive takeover of the entire distribution apparatus. Whatever level is instigated from the perspective of the client, they will have precise benchmarks and expertise on that element of the operation.
Works as a Money Saver
Due to the low financial commitment that has to be agreed upon to bring aboard outsourced 3PL warehouse services, with some enterprises even utilising a location that is not their own, then the overheads are well managed and the revenue is kept inside the company coffers. By eliminating lost stock, poorly packaged stock and a reverse logistics management process where items can drop in value via a lack of oversight, money is suddenly saved thanks to a higher grade of efficiency. 3PL warehouse services will cost a fee, but the long-term savings will make it a beneficial exercise.
Little Risk on Short-Term Basis
The great aspect of agreeing to an outsourced 3PL warehouse services is that the terms are set from the outset with the blessing of the business. If they want their expertise for a short-term project on some key objectives, that will be the established agreement before the tenure reaches a natural conclusion. For others that want a comprehensive analysis and tracking apparatus included, then those terms can be part of the contract where a more medium to long-term vision is instigated. This will minimize the risk for organisations that want to have the power to pick and choose who they deem is suitable to work on their behalf.
Openings to New Markets
So much of manufacturing, retailing and distribution of stock is limited to travel logistics and what couriers can or cannot do between postcodes. By opening up a brand to the potential of 3PL warehouse services, there is wider scope to engage areas of the country that have not been tapped into before. Whereas a New South Wales operator would have to consider extra freight charges when shipping goods to Queensland or Victoria, a third party outlet in another state can create new pathways and new consumer bases that were not originally available.