5 compelling reasons to choose a Third-Party Logistics Partner
Third-party logistics providers are a major catalyst in the success of businesses needing inventory management and storage, processing, transportation, assembly, shipping, and other logistics and management processes.
Take a look at these 5 benefits a third-party logistics provider can offer any e-commerce or brick-n-mortar business looking to grow or gain a competitive edge.
1. Outsourced Third-Party Logistics allows for maximized core competencies
To successfully build a business in a rapidly growing market, it must operate efficiently – and the greatest efficiency can be realized when the business is directing its energy, resources, and finances towards its core competencies.
Assigning non-core responsibilities such as managing inventory, shipping, or warehousing to core personnel swallows their time that could otherwise be invested in business growth. Scattered focus leads to inefficient work places, and it can ultimately affect the business’s bottom line and growth potential. Most businesses don’t have the expertise to successfully manage large volume logistics. Because of this, it’s a wise decision to partner with a reputable third party logistics company like Direct Mail Corporation.
2. Outsourced Third-Party Logistics means low capital commitment
By outsourcing to an experienced third-party logistics provider, a company can run their business with low capital commitment, thus avoiding large investment costs. Third party logistics partners have the proper warehousing infrastructure, equipment, transportation, technology systems, a scalable fulfillment team, and costly insurances. A third-party logistics provider absorbs these operating costs, which allow its clients to operate without have such large fixed overheads.
3. Outsourced Third-Party Logistics leads to overall cost savings
Achieving lower operational costs is one of the primary reasons a business may decide to outsource their logistics to a third party. Partnering with a third party logistics provider often delivers significant savings overall and keeps a business’s financials on track.
Cost savings in the supply chain billing, payroll, hiring, training, and other essential administration required to manage logistics. In addition to paying for warehousing space, utilities, equipment such as forklifts, logistics software can be costly. These costs are borne by the third party logistics provider rather than the business.
Normally a reputable third party logistics partner offers greatly reduced shipping rates due to the volume of parcels distributed.
4. Scalability – Efficiently handle volume peaks and fluctuating demand
An experienced third-party logistics company understands fluctuating demand and has a workforce in place that is ready to step in to manage peaks. Direct Mail Corporation’s casual workforce is experienced in coping with holiday orders, high-sale seasons, as well as last-minute promotional sales. Conversely, when demand is low, our workforce is able to quickly scale back, too.
5. Outsourcing logistics provides a market expansion opportunity
Working with a reputable third-party logistics company can provide the opportunity for a business to expand into new regions. Certain areas may be physically impossible to reach without third party logistics support.
As you can see, there are many benefits to partnering with a reputable third party logistics provider. Overall, it allows a business to effectively meet their market demands, as well as customer needs. In addition to this, it greatly benefits their ability to operate cost-effectively, allocate resources where needed, and grow their business successfully.
Find out more about Direct Mail Corporation’s third party logistics services.