6 reasons why you should outsource your warehousing needs to a reputed logistics partner.

The post-pandemic year was a metaphorical shift for the logistics sector. Third-party logistics (3PL) providers are all set for a dream run in the upcoming years. From being an unorganised sector working closely with asset-heavy industries, the 3PL providers have evolved the warehousing sector with technological advancements to now cater to various sectors such as e-commerce, retail, pharma and many more.?

Most e-commerce and retail companies are now preferring to outsource their logistics and warehousing operations to 3PL players. According to a report by Knight Frank, warehousing demand by 3PL occupiers has grown immensely and has increased from 24% in 2021 to 31% in 2022.

Supply chains have gotten well-established with interconnected, distributed networks offering top-notch quality customer service. Modern warehousing solutions have made the game seamless for supply chains to operate across countries, continents and sectors. Reputed 3PL providers have access to best-in-class resources and due to their expertise, companies have realised their instrumental roles and begun to outsource their entire warehousing needs.?

79% of companies with efficient supply chains enjoy more than average revenues, shows a Deloitte study. So if you are still sitting on the fence about whether to outsource the warehousing needs of your organization, here are the top 6 reasons to do so.?

Higher flexibility

One of the best reasons to work with a third-party logistics provider is that they provide high flexibility with shared resources. You are not their only client and hence, the costs are shared amongst their customers. On the other hand, your company need not invest in large land parcels or lease them out and risk buying up space which might look like an added liability. This allows you to scale up as and how your business changes, while your warehousing needs are taken care of.?

Expert management

Let the specialists take care of the technical side of your business. By outsourcing, 3PL partners meet the time-sensitivity factor and improve the efficiency of your deliveries. They will take care of coordination, storage, warehousing and transportation needs. This eliminates the hassle of you having to coordinate between companies and leaves minimal room for error.?

Reduce capital investment

By reducing your inventory carrying costs, streamlining processes and keeping transportation costs in check, 3PL partners bring down your operational costs. By outsourcing, you need not invest in machinery, equipment or in-house staff running the warehousing demands by customers, which brings down the overall capital investment.

Increase customer satisfaction and ROI

Partnering with professionals, who have a proven track record of success, brings increased value and improves your delivery system. Reputed 3PL partners avert circumstances of delayed shipping, confusion in consignment deliveries, and other chaos that increased customer satisfaction.? This results in an increase in return on investments (ROI). Besides the savings, the value and quality of work being done adds to the ROI with the right 3PL partner.?

Risk mitigation

Third-party supply chain partners help you achieve high visibility, control and security. This increased visibility helps in identifying risk areas and lowers the chances of wastage or leakages. In areas like quality, compliance and inventory levels, you get a better hold of control. With the 3PL partners, you can take proactive steps to mitigate risks, optimize safety stock, prepare audits and manage the whole system better.?

More time to focus on your core business

Getting entangled with tactical details can side-track your business growth. Letting a 3PL expert take care of your entire warehousing package can enhance your strategic positions and business competencies. Outsourcing enables you to focus on your time, energy and resources and lets you do what you do best, facilitating better services and developing advanced products for your customer base.?

Efficient and time-sensitive supply chain management is vital to any business. By outsourcing the warehousing needs, you get to achieve healthy inventory levels, a higher value to customers and efficient deliveries. Not only this, but additional savings on operational costs and reduced spending will prove the company’s financial stature.?