Timely and efficient delivery of customer orders is essential to keep customers happy and satisfied. This, in turn, helps retailers to increase sales and grow their business through the generation of repeat and referral business.
That said, third-party logistics, commonly referred to as 3PL, is essential for retail businesses that are looking to streamline their logistics function. If you're a retailer and are considering hiring a 3PL services provider, it is important to first understand how they will benefit your business. Read along to find out some of the top reasons to opt for 3PL services.
1. Opportunity to Focus on Your Core Competencies
As part of logistics management, your business needs to store, package and distribute goods. Depending on the size of your business, this is a function that may require a significant amount of time, as well as human and non-human resources to execute efficiently. If logistics isn't the core of your business, you may be better off spending your time and allocating resources to the implementation of other critical functions such as finance, sales and marketing that require your attention.
2. Faster Order Fulfillment
When you have a trustworthy, dedicated and efficient third-party logistics specialist handling the storage, packaging and transport of your goods, your customers will receive their orders in good time. This is essential to cutting delivery time and keeping customers satisfied with your services.
3. Opportunity to Access New Markets
Have you discovered new markets that you'd like to tap but don't have the vast resources needed to deliver your goods to customers in those markets? A 3PL services provider might be the solution you're looking for! Most 3PL companies can deliver goods anywhere you want, be it within your state, interstate or even across your national borders. This presents you with the opportunity to access markets that you may not be able to reach using your own resources.
Wondering about how to efficiently downsize or upsize your inventory during the off-peak and peak seasons respectively? Having excess inventory when business is slow may lead to huge losses, especially if the inventory won't last until the next boom period. Inventory shortages during the peak season are also no good. This is because they result in loss of business from customers who make purchases elsewhere. A 3PL company has the capacity to accommodate your changing business needs so you can reduce or increase your stock depending on the prevailing market demand.
Clearly, your business stands to benefit a great deal if you hire a 3PL company. But not all retailers are created equal, so make sure you discuss your needs and situation with your chosen service provider.