At what point does a business organization need to enlist 3PL services? Third-party logistics, or 3PL, handles all aspects of storing and transporting your product. A 3PL deals with procurement and supply chain management as well. Essentially, your 3PL provider takes care of the details so you can focus on product development, research, marketing, and all the other things that will help your company grow.
How can you know when you need 3PL services? Here are five indicators that show you need a 3PL.
1. Your Business Has Experienced Strong Growth
Every business wants to grow — but when your product line takes off, you may find your internal logistical process isn’t sufficient to deal with the greater demand. A 3PL provider can assist you with improving your warehousing, transportation, and even information technology. When you optimize your fulfillment, shipping, and other services, you become better equipped to meet the higher customer demand.
2. Your Costs Have Been Increasing
If you have been handling transportation and warehousing in-house, you may have noticed your bills going up right along with your company’s profile. When you lack the built-in efficiencies to distribute a product effectively, you will experience the odd dichotomy of getting your product into more prominent locations and also seeing your costs go up.
As a small company, it can be challenging — and expensive — for you to scale to customer demand. A 3PL provider is much better equipped to do it for you, offering cost savings and longer-term cost control that allow you to set consistent budgets.
3. Your System Isn’t Keeping up With Demand
Most in-house warehousing and transportation solutions are several steps behind in the technology department. You can benefit by upgrading to state-of-the-art facilities and software without having to buy it yourself, which would be a significant strain on your finances.
When you use a 3PL company, you can access the enhanced technology they already have in place. You benefit from a more streamlined and productive operation, and your partners receive products on time and in great shape.
4. Your Distribution Expands to a New Area
Landing distribution in new places signals great things for your company, but you may not have the logistical support in place to immediately implement this change. By using 3PL, you can hit the ground running in your new deal, feeling confident the team can get your operations up to speed and meet ambitious early goals.
5. Your Expertise Is Needed Elsewhere
Your top executives should focus on growing and improving your company, not worrying about how your product gets from point A to point B. Freeing up your best minds to concentrate on bigger-picture tasks is the best thing you can do for your company’s future.
You will know when you need 3PL services when you spot these signs. And when it’s time to hire a 3PL company, consider Central Florida Freezer. We provide 3PL services and a full fulfillment center. Contact us today to learn more about what we offer.