In the on-demand world we live in today, efficient and reliable warehousing and distribution systems have never been more important.
As businesses grow, however, maintaining the efficiency of these functions in-house becomes both more complicated and more time-consuming. What’s worse, it generally also adds unwanted stress and almost always steals attention from other areas of your business.
Thankfully, this inevitable obstacle of a growing product business can be avoided by outsourcing these functions to a specialty third-party logistics provider (3PL).
Whilst outsourcing such a vital aspect of your operations might sound daunting at first, doing so comes with an array of undeniable benefits.
Here are 7 ways outsourcing your warehousing and distribution fulfilment solutions will benefit your business.
1. Free Up Your Time By Outsourcing Your Warehousing And Distribution Management
Every business owner knows that time is money, and there is no denying that warehouse operations and supply chain management are time-consuming processes.
From training and managing staff to tracking inventory and transportation costs, this vital yet tedious part of operations is undoubtedly stealing focus and attention from your core business.
Outsourcing this element of operations removes this common bottleneck and allows you to focus on the strategic tasks that will make your company thrive.
2. Save Money and Free Up Cash Flow With Outsourced Warehousing And Distribution Services
For many businesses, the deciding factor on whether to outsource their warehousing and fulfilment solutions is the bottom line. Is it cost-effective?
The answer is yes!
The associated costs of acquiring, setting up and fitting out a warehouse space are considerable. Pair this with the cost of acquiring and implementing the necessary warehouse management systems and the investment is often significant enough to tie up cash flow and stunt growth.
The ongoing costs of acquiring, training and managing extra staff and the upkeep of necessary plant and equipment can also add up, both financially and on your time and attention.
By taking advantage of third-party providers, on the other hand, you are only responsible for the per-unit storage and fulfilment fees. This kind of pricing model gives you added flexibility and allows for unexpected spikes or lulls in demand without putting your profitability at risk.
The cost of outsourcing warehousing and distribution is often more affordable than you may think. Through the use of cutting-edge industry technology and economies of scale, specialty distribution centres can create streamlined processes that allow them to meet fulfilment needs in a more cost-effective way, cushioning the overall cost and making them viable for most businesses.
3. Problem Solve With The Greater Experience And Expertise Of Industry Professionals
No business can excel at everything, and it is invariably difficult to supply a comparable level of service to a large company whose core competency lies specifically in warehousing and fulfilment solutions.
Warehouse and supply chain management are complex and detailed processes and entrusting these services to a 3PL gives you access to a wealth of knowledge and know-how that only specialist companies can have. This expertise can be invaluable when it comes to making decisions about your inventory, stock levels, packaging, transportation and fulfilment requirements.
Furthermore, these large companies have vast experience in dealing with any shipping issues or delays that may crop up, which, along with their broader supply chain networks, allows them to better satisfy your customers.
4. Provide A Better Customer Experience Using An Outsource Warehousing and Distribution Service
From quicker turnaround times, improved order accuracy and tracking to more comprehensive customer service support, the services offered by third-party warehousing and logistics specialists often result in a smoother, more streamlined customer experience.
This, again, frees up time that you can then dedicate to building more positive relationships with your customers in-house, rather than simply resolving their queries and complaints.
5. Outsource Your Staffing Headaches To A Third-Party Provider
Recruiting, training and managing staff can be both time-consuming and costly. Not to mention, if you don’t have the necessary experience in this area, it can also be a bit of a minefield.
What’s more, because you’re not managing everything under one roof, you don’t need to worry about issues such as staff turnover or absenteeism affecting your operations. Nor do you have to deal with the associated workplace health and safety matters, again freeing up more time for you to focus on your core business.
6. Scale Your Business With A Third-Party Logistics Expert
Leveraging the network of a third-party provider allows you the flexibility to set up and scale your distribution model as business demands shift, enabling you to grow into new markets and service new and diverse customer bases.
By utilising broader supply chain and warehousing networks, your business can be more agile in servicing new locations quickly and without significant upfront investment.
Furthermore, because you’re not locked into long-term contracts, you have the flexibility to scale up or down as needed. This added flexibility allows you to test new markets and immediately meet demand with minimal risk.
7. Enjoy The Greater Supply Chain Value And Services Offered By Specialised Companies
Many warehouse facilities and distribution centres offer fulfilment solutions that add serious supply chain value, working to keep costs low and customer satisfaction high.
Kitting, packaging, assembly, returns processing and reverse logistics are all examples of the value-added services most fulfilment companies provide to better serve your customers.
Moreover, their advantage of scale also allows them to implement cross-docking and order consolidation strategies into their supply chain and warehousing operations. This works to reduce shipping costs and avoid storage fees.
Because Outsource Warehousing And Distribution Just Makes Sense
Outsourcing warehousing and distribution management is a big decision for anyone, but it’s one that often makes sense.
Outsourced warehousing avoids considerable set-up and staffing costs and frees up cash flow. It also gives you access to cutting-edge industry technology to better manage inventory levels, scale your business and satisfy your customers.
Outsourced distribution services utilise economies of scale to provide a more cost-effective and efficient means of meeting your fulfilment needs. They also alleviate the stress, time and cost of managing staff, plant and customer enquiries related to delivery, giving you more time for business development.
So, if you’re looking for ways to simplify your business, outsourcing your warehousing distribution and supply chain management is definitely something for you to consider. It could be the best decision you ever make.
Wyton Transport provides warehousing, inventory management and transport solutions to businesses of all sizes. Based in South Brisbane, we specialise in servicing South East Queensland, Mt Isa and everywhere in between. We also have nationwide solutions available for our customers upon request.