Benefits of 3rd Party Logistics - Warehousing and Fulfilment
3rd Party Logistics (3PL) services can help your business focus on your core skills, selling and supporting your products. There are many benefits of 3PL services, including:
Reduced Liability – using a warehousing fulfilment operation can provide a significant reduction in your liabilities, including:
• No fixed lease liabilities.
• No fixed staff costs, including workers compensation, and staff management.
You will be free of property leases and associated property costs and have no costs associated with warehouse staff and equipment. Instead you pay a cost which reflects your actual fulfilment needs. You can free up capital to use growing your core business.
Built-in flexibility – Your business won’t get caught out by peaks and troughs in fulfilment demand as your sales grow or vary with seasonal demand. When you have your own warehouse operation you will carry the risk of having underused staff and facilities in quiet periods or be unable to meet demand in peak seasons. With 3rd party warehousing and fulfilment, your third-party provider carries the risk associated with managing people and processes and reduces your liability.
Consistent Fulfilment Performance – Nothing damages a company’s reputation as much as a poor fulfilment experience, and when you use an experienced 3rd party Warehousing and Fulfilment provider like Advanced Distribution Services you get a competitive edge with reliable, high quality service. Satisfied customers will be repeat customers.