3 Key Benefits of Outsourcing to a 3PL

When expanding their business, many business leaders find that continuing to use an in-house fulfillment system is no longer feasible. Scaling your workforce and warehouse to fluctuating demands can not only be costly and imperfect but can lead to errors and unhappy clients. Along with that, foreign regulations, customs, languages, licensures, currency distinctions, and finding local suppliers are just a few of the issues that arise as you expand your reach into global markets.

No matter the industry, all businesses can benefit from best practices that third-party logistics providers (3PLs) bring to the table. They are uniquely equipped with the resources, knowledge, and experience to help businesses painlessly grow in size and scope. Here are just a few of the ways working with a 3PL can help a growing business.

REDUCED SPACE & LABOR COSTS

Cost efficiency is perhaps one of the most persuasive benefits of connecting with a 3PL. Rather than invest in a whole facility to respond to fluctuating sales and inventory, 3PLs let multiple customers share the weight of labor and space costs. Multi-client facilities require clients to only pay for space and labor they use, when they use it, which is a huge advantage to those companies whose sales vary from month-to-month. This keeps profitability high and risks low.

GLOBAL REACH

Possibly the biggest obstacle for companies expanding their operations is being able to find the perfect place, relationships, and partners at the right time. In the event you do secure a warehouse in a foreign country, there is still the challenge of international laws and regulations, currency issues, and multiple hiccups and unanticipated challenges along the way.

In working with a 3PL, businesses no longer have the stress of managing warehouses and employees from far away. A 3PL with in-country presence knows the local regulations and has enduring relationships with local governments to ensure success.

ACCOUNTABILITY

One intangible benefit of partnering with a 3PL may not show up in dollars. Individualized attention and oversight are one of the most significant benefits 3PLs provide to their clients. Rather than numerous people handling product flow from multiple suppliers all over the world, partnering with a global 3PL lets companies decrease the number of touch points needed to manage an efficient supply chain. They also implement distribution and storage processes that are controlled by a single entity, increasing accountability and decreasing confusing and excessive communications.
Outsourcing to a 3PL is a critical business decision and one not to be made lightly. Companies should choose a partner who can deliver deep industry knowledge and considerable global experience to ensure success. Most of all, a worthy 3PL should always be reliable, deliver on their promises, and represent the businesses they partner with well with professionalism and dependability. Langham Logistics is the epitome of that business. For more information, please contact us by calling 855-214-2844.

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