Most companies start out managing their own logistics, but when should you start thinking about outsourcing responsibilities such as warehouse management, fulfillment or distribution?
If you can relate to any of the situations below, it might be time to think about how a 3PL company can help you optimize and scale your logistics. Jump-start the process by following our helpful guide to writing an RFP for 3PL services.
1. You’re often backlogged with returns or new orders
When demand is high, you need more resources to keep things running smoothly. That’s to be expected. But if your process is overwhelmed on a regular basis – let alone during busy seasons – it’s time to start thinking about how a logistics company could help.
The key here is scalability and flexibility. A good 3PL will be able to quickly adjust resources to help you manage high demand, and scale back when product movement is light. This lets you focus on your business while the 3PL company focuses on logistics.
2. Damaged or mislabeled product shipments prevent you from quickly processing orders and returns
Even with highly efficient processes in place, receiving damaged or mislabeled product from vendors can dramatically disrupt your operations. In this case, you end up spending extra time and resources sorting through shipments to your warehouse before your product embarks on the next leg of the journey – from the warehouse to your consumers. That’s time you could have spent filling new orders and managing returns, or better yet, improving your business and selling more product.
A good logistics company can help you manage product shipments and inventory to create a more positive experience for your customers. Read more about solving automation and accountability problems in this case study.
3. You’re getting ready to scale your business
Logistics are different for every business and can change as rapidly as your business changes. Even with the most complicated systems, a logistics company can apply industry best practices and the latest technology to optimize your processes as you grow.
The added expertise by a 3PL company can help make the interactions with your customers as seamless as possible. Whether it’s warehouse management, fulfillment, or managing product from vendors, taking logistics responsibilities off your plate will help you focus on other aspects of your business.