31 Aug When Is it Time to Hire a 3pl For Your Business?
Nearly every growing business reaches a point when the demands of the consumer outmatch the capabilities of what the company can provide on its own. While this is a sign of growth, it is also an indicator that you may need some assistance with your day-to-day operations. If you own or manage a business, you probably know that a 3PL service provider can provide solutions for virtually all your warehousing needs. While hiring a 3PL for your business can seem like the obvious move, it can be difficult to know when the time is right to seek assistance. Here are the key indicators that should prompt you to explore a 3PL option for your business:
Increase in Orders
While you may be able to keep up with a surge in orders in the short term, putting excess time into the order fulfillment process can become a burden on your company. Not only does it require more labor, it also takes away from time you could be spending on other aspects of your business, such as improving your product or strategizing for your next big move. Since every business is different, there is no concrete number of orders or deliveries that suggest it’s time to outsource to a 3PL. This decision will need to be made based on your evaluation of the company’s workflow. But, keep in mind that once the amount of orders exceeds what you can efficiently handle in-house, it is probably time to consider allocating the order fulfillment duties to a 3PL.
You Need More Storage
As your business continues to grow and the orders begin to stack up, naturally you will need more storage space to stock all your goods. This is a good problem to have, since a limited storage situation likely means your company is succeeding and growing at rapid pace. When this happens, it is a good idea to plan ahead. Don’t wait until it is too late to consider a 3PL, as inventory can pile up rather quickly and cause a delay in your supply chain. Simply put, when your warehouse/facility can no longer safely and practically accommodate your inventory, it is time to consider a 3PL provider.
You Need to Cut Costs
While it may seem unfeasible for your company to outsource to a 3PL in the early stages, this investment can actually save you a lot of money in the long run. One advantage of a 3PL is that it streamlines multiple aspects of your business into one service. Instead of purchasing more storage space, hiring a fleet of trucks and investing in your own WMS, a 3PL can manage all these processes, and will offer them for a much better value. Not only can investing in a quality 3PL service provider relieve some of the expenses that come with running a business, it can also eliminate unnecessary liabilities such as worker’s compensation and damaged products.
Ultimately, the right time to invest in a 3PL provider is your decision. Perhaps you believe it is possible to continue with your in-house operations for now. But, if you would like to schedule a consultation or inquire about how a quality 3PL can benefit your company, please feel free to contact us.