Why Many Small Businesses Outsource Their Logistics

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We all know that outsourcing is the buzzword of the decade, largely because of the reduction in running costs when you no longer need a fleet of commercial vehicles or the drivers that make up the package. Every sector is highly competitive and the third-party logistics (3PL) industry is growing exponentially in order to keep up with demand.

Downsizing your operation

If you have a small fleet of vans, you probably use LT tyres where you find the best brands at the lowest prices, yet you can sell off the fleet when you partner up with a local 3PL warehouse. Calculate the cost of using a 3PL provider then compare that to the outgoings you save by dissolving your fleet of vans. For most entrepreneurs, it is a no-brainer and that is money that can be used in other aspects of the business.

Reliability

Simply put, you need a reliable 3PL outfit that ensures same-day delivery where it is required, vehicle breakdowns and driver absenteeism should affect the provider’s ability to fulfil orders, even in high-volume situations. Never partner up with a new venture that has minimal resources, as you would be taking a considerable risk; better deal with an established company that has many resources at its disposal. E-commerce businesses make the best use of 3PL services, where rapid order fulfilment is required.

Boost customer satisfaction

If your customers receive their goods in a timely manner, they will recommend you to their friends and colleagues and you will soon earn a reputation as a company that delivers on time every time! It takes many years to gain such a reputation and that can be lost in a matter of hours. If you are concerned about your business and its reputation, outsourcing your logistics to a leading Australian 3PL is a wise move. Click here for information on intranet solutions for corporations.

Slash running costs

If you engage the services of a leading 3PL company, your running costs will be reduced significantly and this is a major benefit for every company.  As inflation takes hold, businesses have to look at ways to reduce running costs and outsourcing is one way to do just that!

Scalable solutions

If you suddenly experience a quiet time sales-wise, a phone call is all it takes to stop the 3PL service and when things pick up, you can restart at any time. There are no lengthy contracts to tie you to the service; most are happy to provide their services on a month-by-month basis; this level of freedom empowers you to be flexible, as your needs fluctuate and you only pay for the services you actually use.

Carry out a needs assessment

In order to determine the extent of your logistics needs, you can do a needs assessment and see if that matches up with the services offered by 3PL providers.

We hope that this article enlightens you about third-party logistics.

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