The best and worst problem a business can have is being overwhelmed by order growth. It’s fantastic that consumers are interested in buying your product, but your business will suffer if you break customer trust by not fulfilling your shipping and fulfillment promise. When you are overwhelmed by order growth, you lose the opportunity to be fully focused on the growth of your business because you are instead devoting attention to order fulfillment and processing.
The solution to your problem is simple: partnering your business with a 3PL logistics management team and warehouse.
Reason #1: 3PL Logistics is cost-effective
The number one reason for partnering with a 3PL logistics management company is the fact that outsourcing your order fulfillment process will provide the best cost-value. A quality 3PL logistics partner will consistently monitor, analyze and optimize your operations.
Additionally, warehousing your goods with a 3PL logistics company means you are only paying for the space your materials occupy, rather than paying for an entire warehousing unit alone, thus saving you money.
Reason #2: Service Improvement
A 3PL partner should improve the quality of service for your company. The 3PL logistics company you partner with is likely to have better connections with transportation providers, have a smooth turn-around process for returns and exchanges, and easy de-kitting. Each one of these services, without the benefit of a time-tested workflow, can wreak havoc on your business as you try to keep up with demand.
3PLs are able to keep close tabs on these systems because it’s their priority. A 3PL does not have to worry about other areas of the business, such as branding or product development. The 3PL’s sole purpose is to provide reliable logistics and ensure customer satisfaction so that you can focus on your day-to-day operations.
Reason #3: Technology
The 3PL logistics company you partner with should already have a roster of technologies they utilize for optimal performance. They will take on the responsibility and cost associated with order processing, analysis, and fulfillment. Some of the technologies you should look for when selecting the proper 3PL company for you are:
- Real-time order tracking
- Data analysis and various reporting tools
- Route and consolidation optimization tools
- Transportation Management Systems (TMS)
Reason #4: Problem Solving and Issue Management
Problems may occur during any stage of the order fulfillment process, but most issues ariseduring the transportation phase. Accidents such as breakdowns, weather interruptions, schedule changes, health concerns and unplanned checkpoints all will be handled by your 3PL logistics provider.