When you choose to use 3PL warehousing (also known as 3rd party logistics warehousing), they outsource to a third party company all - or a combination of - warehousing, transportation services, and fulfillment. This allows you to focus your attention on other aspects of your business such as product development, manufacturing, marketing, and selling. The third party company then handles all of the warehouse and shipping responsibilities for you.
The benefits of this arrangement are numerous. The most obvious is that you immediately have more time to devote to your products, your company, and your customers. In addition, you are likely to save money by using a third party logistic company; they are often able to reduce your overhead costs, and may be able to offer you better rates than if you were performing these services yourself.
3PL warehousing will store your inventory for you, so that you don’t have to find space for it and then keep track of it. A third party logistics company usually has relationships with shipping companies and may be able to ship your products in a more efficient and cost-effective way than if you handled the packaging and shipping yourself.
Faster and more economical shipping means happier customers, and happier customers means increased sales! Third party logistics companies have staff that is specifically trained in all aspects of product distribution, including safety issues. You will save money and time by not having to train your own staff for these job functions, and you will reduce risk to your own employees.
Many third party logistic companies allow you to track your products from the warehouse through the delivery process, and they should be able to provide you with instant inventory reports so you know how much product you have on hand. This kind of reporting helps you track sales trends and will let you prepare for slow or fast sales periods.
3PL warehousing can be a boon to any size of business. Whether you are a small business with just a few products, or a large company that needs to store and ship thousands of items, you will find that third party logistics will help you save time and money.
If you are reading this on any blog other than The Dependable Companies
or via my RSS Feed, it is stolen content without credit.
You can find me on Twitter via @LogisticsDan
Come and visit our blog at http://blog.GoDependable.com