5 Ways A 3PL Provider Can Grow Your Business

5 Ways A 3PL Provider Can Grow Your Business

May 5, 2021

Working with a third-party logistics (3PL) company offers a variety of advantages when it comes to growing and scaling your business. A 3PL provides a range of services under the logistics umbrella, including but not limited to transportation, warehousing, inventory forecasting and order fulfillment, leaving you with more time to focus on other aspects of your business.
 
According to the 2021 Third-Party Logistics Study, 92% of 3PL users and 96% of 3PL providers agreed that supply chains are evolving from linear chains or processes to complex networks or ecosystems of organizations, resources and capabilities. As consumer expectations and habits change, the supply chain becomes more difficult to navigate. Partnering with a 3PL can take the headache of these challenges away and bring many benefits to your business.
 
Reduce Costs
You might think it would be more cost effective to create a position to do the job in-house, but in the long run, it isn’t. While the upfront cost of a 3PL might seem pricey, providers are often able to leverage better rates given they work with carriers on behalf of multiple customers. Additionally, a 3PL has an expansive network and logistical infrastructure already in place to eliminate inefficient processes. As is true in every industry, time is money, and using a 3PL can save you both.
 
A 3PL can also save you money on capital investments when it comes time to upgrade your warehouse facilities and management systems. These large projects can absorb capital between labor and technology, but a 3PL has the infrastructure already in place to help expand and enhance your business quickly, while also inexpensively.
 
Market Expansion
Additionally, a 3PL also has access to warehouses and distribution centers in markets that might be targets. With what has been coined “The Amazon Effect”, consumers are demanding immediate shipping, which is only possible if there is a distribution center nearby handling the inventory. Utilizing a 3PL’s already established structures allows for quick expansion without having to locate and manage new warehouses, equipment and inventory.
 
3PLs also have incorporated fleet management systems all across the country. This allows your business to gain distribution nationwide and reach a new audience of consumers. Their fleet management has implemented procedures to handle inclement weather and delays, keeping your supply chain running in whatever market your business is growing in. 
 
Flexibility
In the aforementioned study, 83% of participating 3PLs agreed that their supply chains have been able to identify changes in macro-environments and to modify and enhance supply chain capabilities appropriately. This ability can mean successful growth for businesses using a 3PL.
 
3PL providers have the ability to scale space and resources as your business fluctuates through slow seasons or product launches. A 3PL can utilize supply and distribution chains based on what your company needs, which makes it easy to scale your business when demands surge. This permits you to secure opportunities for growth knowing that your inventory distribution channels can keep up.
 
Choosing a 3PL also relieves you from hiring, onboarding and training new employees when business picks up or having to make cuts when things slow back down. Their already installed and trained workforce will save you from the struggles of managing human capital and make sure you always have the right people getting the job done.
 
Improved Customer Experience
Another benefit to a 3PL is they can offer your customers the options they are looking for, allowing your business to reap the purchase benefits. Customers want fast, affordable shipping and easy return systems, which a 3PL company can provide. Having these options available for your consumer can help retain your customers for future purchases and match any competition you might have.
 
They also have a built-out order management system that handles incoming orders and outgoing inventory accurately and efficiently. Their robust network can source inventory from a variety of sources, allowing you to offer your customers different shipping options or even in-store pickups on online orders. Allowing customized delivery methods can attract more customers, generate more sales and increase profits.
 
Optimization
Lastly, technology and techniques are always changing and can be hard to keep up with when managing your supply chain in-house. A 3PL has the ability to continuously update and optimize your supply chain to make sure everything is running at its best.
 
3PLs also understand big box retailers’ compliance policies and have the technology in place to accommodate them. Being picked up by a big box retailer can grow your business to new heights and lead to a big increase in sales. A 3PL can save you time and money from having to build and implement new compliance systems, so you can focus on serving more customers.
 
No matter what your logistics scenario is, Atlas Logistics® has the experience and resources to help. Get in touch with us today to learn more about what we can do for your business.