If your small business ships freight to distribution points, chances are you already know quite a bit about 3rd Party Logistics. While 3PL is common within the industry, here are a few things that every small business owner should know, and take advantage of if possible.
- Lowering Costs: Small businesses are always looking to lower costs as another way to increase profit margins. A 3PL can help keep a business competitive in the marketplace. This is usually done by being able to pass along saving to the buyers of your products.
- Additional Warehousing: Instead of building on to your existing building to gain additional warehouse space, a small business can utilize warehouse space provided by 3PLs. Not to say that this additional warehousing space doesn’t come at a relatively small cost; simply that this will enable a business to avoid a huge outlay of investment capital. This also enables warehouse scale-ability, as well as reduces labor costs usually associated with the additional space.
- Increased Efficiency: Managing added warehouse space takes additional employees. These employees need to be paid, accounted for and managed in order to become an asset, rather than a liability to a business. Using the services of a 3rd Party Logistics company, a smaller business can take full advantage of all the manpower the 3PL has available, without taking on all the responsibilities of additional workers.
- 3PL and LTL: With a 3rd Party Logistics provider, a business can also take advantage of their “Less Than a Load” services as well. This enables a business to only pay for what they use. If your business experiences seasonal fluctuations in the amount being shipped to distribution points, there is no sense footing the bill for the whole truck to go there with only half a load or less.
As you can see from these few examples, there are many reasons to use a 3PL provider for your business. We’re sure you can now think of many more reasons that may be unique to your particular operations. If you’d like to discuss how we could be of service to you, contact us; we’ll be happy to answer any questions you may have.