Order fulfillment is one of the most important tasks for any company that manufactures and sells products or goods. Late shipments and damaged merchandise can cause customers to take their business elsewhere.
Because of the essential nature of the fulfillment process, many companies are reluctant to outsource to a third-party logistics (3PL) service provider. But it’s important to consider the pros of outsourcing warehouse distribution in order to make the best decision for your business.
Why Outsource Warehouse Distribution?
Here are the top eight advantages of outsourcing warehousing distribution.
1. Reduced Capital Expenditures
When you outsource, you avoid the often prohibitive costs of acquiring warehouse space and managing a fleet of trucks. You also won’t incur related expenses like security and purchasing or leasing material handling equipment. You’ll improve your company’s cash flow, which will have a positive impact on your bottom line.
2. Lower Labor Costs
Outsourcing enables you to operate your business with fewer workers. You won’t have to undergo the process of recruiting, hiring, training and terminating employees, or experience the high turnover that is prevalent in the industry. You also won’t have to deal with as many personnel issues that sometimes create legal entanglements for a business.
3. Fewer Safety Concerns
Warehouses are notorious for the occurrence of workplace accidents and injuries that reduce productivity and increase operating costs. When you outsource, you won’t experience as many of these mishaps. You’ll also spend less money on workers’ compensation insurance premiums and claims.
4. More Desirable Warehouse Location
Not every business operates in an area that has easy access to interstate highways, railways, airports and other infrastructure features that facilitate shipping. Outsourcing gives you the freedom to select a 3PL provider in a more convenient location. You’ll be able to ship your products faster and more efficiently to meet the demands of your customers.
5. Access to Expertise
A professional 3PL service provider offers specialized warehousing and distribution expertise. This knowledge and experience can provide a more positive and cost-effective supply chain management experience and enable you to deliver better service to your customers.
Do you operate a seasonal business or one that experiences wide fluctuations throughout the year? Outsourcing makes it easier to scale up or down as needed. You won’t have to hire temporary workers or rent more equipment to meet an increase in demand or build an addition to your facility to accommodate expansion.
7. More Space
Another excellent reason to outsource warehousing distribution is to free up more room in your facility. You can use the space to expand your manufacturing capabilities, increase the size of the office area or add a store where your customers can purchase your goods in person.
8. Ability to Focus on Your Business
When you outsource, you remove the burden of warehousing, distribution, and shipping from your shoulders. You’ll be able to devote more time and attention to other areas of your operation.
To learn more about the benefits of outsourcing warehousing distribution, feel free to contact Central Florida Freezer. We’ll also be happy to provide more information about our premium 3PL services.