Business

What is 3pl and why your business needs it?

Written by RonWolf

With the current state of the economy in Australia and around the world, small and medium businesses need any help they can get. Having and maintaining that competitive edge is hard to achieve with the rising costs in every sector. Many try to go thru the route of doing it all and taking the whole burden of running a business on themselves. Such a way of thinking is a thing of the past as modern opportunities present themselves. With 3rd party logistics, as the name implies, you can take care of that part. With rising costs on every corner, cut-throat competition from global mega-corporations, and rising demands, any solution that offers a helping hand is more than welcome. So, what does 3pl bring to the table?

1. 3pl saves you valuable resources

Money and energy. The two things any business is constantly low on. You don’t have to worry about this final part of the production process, as you are letting other qualified and experienced experts handle that part. Meaning that you no longer need a dedicated warehouse with all the necessities it contains, with the machinery involved. Also, there is no longer need to hire and train workers as other companies can lighten the load. Delegating all the hassle involved in this stage frees up your time and money, and you can allocate them to other parts of your business. We can all agree that having one less thing to worry about while running a business is a notable thing and, with delegating your shipping and logistic operation to a dedicated 3pl solution, you are achieving just that. Why go thru the trouble of balancing all the parts, when there is someone to help you out?

2. The 3pl solutions scale with you

As your business expands and branches out, you know too well that everything needs to follow. With new logistic options at your disposal, your market share increases with the added possibility. As you can cast a wider net, reliable and professional 3pl provider can follow you along the way. Every benefit that you can offer to your current and potential customers does not go unnoticed and is greatly appreciated. Modern 3pl operations can cater to any size and offer different packages of services so you can pick and choose those that best fit your current situation. One of the added benefits here is that you can search for those who even branch out into foreign or neighboring states or countries. In this example, there is no limit to the scope of your business reach, and with it comes a much larger consumer base.

3. 3pl is a long-term investment

Even with the aforementioned benefits, some businesses may still see 3pl as a costly switch. Not just in terms of money but also control. Trust is something that is built up after time, after all. While the switch to a 3pl may seem a bit costly upfront with all the necessary steps of implementation, it all pays for itself in the long run. One thing that you will notice is the rise of demand from your customers. Having express 2–3-day shipping provides a competitive edge and, drives customer conversion rates up.
In turn, all of the above helps to bring profits up with them as well. When you factor in this as well, not only will this investment feel fruitful, it will be more than enough to pay for itself. As you continue your business collaboration over a certain period, it will get easier to accustom to each other’s rhythm. Businesses that collaborate for a prolonged period get to know each other’s workflow, and can more easily adapt to it. Rome wasn’t built in a day, so patience is key as you watch the fruits of your investments grow by the day.

4. Your time can be better utilized

Time is a finite resource and, we all wished for the day to last just a bit longer. As a business owner, you know that there is only so much you can do in a given time frame. Dedicating yourself to every single thing there is can be an exhausting and costly engagement. With delegation, you are freeing up your workload to focus on other, more important things about your business.
Specialization and expertise are what 3pl operations bring to the table from their long years of practice. With such, they can easily manage what you were overwhelmed with. All the while providing unmatched service along the way. Just as your business is outstanding in its field of operation, treat 3pl solutions in the same way. The end goal in both situations is a satisfied customer, which is a business goal we all agree on.

It may seem that the modern market is set up to be cut-throat and made for solitary entrepreneurship. It’s everyone for themselves at first glance so it’s easy enough to lose track of other options. Or maybe even not consider them as everyone is viewed as competition in the race for each customer. With a bit of adapting when it comes to looking at this, coupled together with some research on the matter, you will find that there are a lot of helpful hands out there. All that remains here, is to find and choose the one that best suits you and start reaping the benefits of such collaboration. With every passing day, your businesses will grow together and flourish in unity. We wish you all great success in your future collaboration endeavors.

Leave a Comment