A 3pl warehouse is where you outsource your workflow to an external company which will help to manage your logistics and supply chain processes.
This can bring several key benefits to your business, especially if you are struggling to manage your own processes. Managing the logistics and supply chain processes as well as your other business processes in your operation can get very complex, especially if you are a small to medium enterprise that is growing. As your company grows, your business operation has to scale too. This can become expensive, as you are unsure of your growth rate in the future and may end up spending more than you have to. A 3pl warehouse can take care of the logistics and supply chain side of your business, and manage it well. It also can offer scalability in accordance with the exact growth rate of your business, thus ensuring you are paying only for what you need.
Here are some reasons why a 3pl warehouse can be beneficial to you and your business.
Managing the supply chain and logistics process is made up of various processes within the business operation. It involves the coordination of numerous individuals in charge of certain aspects of the business operation, and it has to be done efficiently in order to be effective. Trying to coordinate all these individuals and workers in order to manage it properly can be a complex and difficult task, especially when there are other parts of the business you have to look out for too. By outsourcing to a 3pl warehouse, they will take over these processes and manage them for you. They are especially skilled and trained in this field, and will do the job very well. This means that you can focus on the other parts of your business, knowing that the supply chain and logistics processes are in good hands.
It is cost-effective
By outsourcing to a 3pl warehouse, you are ensuring you have storage space for your products and distribution. They are also scalable, and as your business grows and demand increases, the size of storage in the 3pl warehouse will also increase accordingly. It will match the growth rate of your business, and you will only be paying for what you actually need. This is in contrast to not outsourcing to a 3pl warehouse, and you may have to buy more space than required in order to meet the growing demands of your company. A lot of space may not be used, and yet you still have to pay for it. This is an unnecessary amount of spending on something you are not going to use.
It is therefore more cost effective to outsource to a 3pl warehouse.
They have multiple locations
If you are renting your own storage, you will likely not have much choice when it comes to location, as you have to rent what you can afford. With a 3pl warehouse, the providers are likely to have multiple centers for distribution, and thereby multiple locations. This means you will have a delivery radius that will not be constrained, and your business will have much more flexibility in terms of location. Once you choose a location, you can set up your business operation immediately and get to work.
In summary, a 3pl warehouse provides many great benefits for your business.
They will manage everything for you using their expertise when it comes to the supply chain and logistics processes. A 3pl warehouse is well worth it for any growing business.