Optimise Your Operations: 7 Benefits of Hiring Warehouse Logistics Services

31 October 2019 | Warehouse Logistics

Dealing with the growing complexities of your business? It’s always a wonderful thing when a business grows, and the customer base expands. However, so do the demands. If you are a retailer, you know all too well the trouble that comes with stock inventory and warehouse logistics.

As your business evolves, you need to evaluate your fulfillment logistics strategies. You may be facing two options here. Obtaining a warehouse and hiring a fulfillment crew is the first option. Outsourcing fulfillment to a 3PL or third-party fulfillment company like LTS is the next option.

Both options come with pros and cons that need to be weighed before making a decision. The latter can prove to be a more feasible option as it’s more advantageous. 90% of Fortune 500 companies actually rely on third party logistic services.

Managing the flow of products requires investment in time and infrastructure. Outsourcing activities like logistics management, allows a business to focus on core objectives. These include growing and satisfying customers. In this post, we’ll be looking at a more in-depth view of hiring warehouse logistics services.

1. Access to Advanced Logistics Tech Software

The one thing that warehouse logistics services may have that you don’t is state-of-the-art logistics technology. The largest stumbling block is the initial cost and the upgrading associated with it. As a single organization, your primary operations have little to do with logistics. Investing in this technology may not be a priority.

A good logistics management system requires a lot more than people. It requires sophisticated technology that allows supply chain visibility and automated end-to-end processes. This makes it possible to provide better data processing and storage. You get better customer services and better distribution management. You’ll also get speedy communication, and empowered decision making.

Technology helps a business save money by preventing unnecessary inventory shortages or overages. It enhances the visibility of products during transit as well. 3PL companies invest heavily in this tech for warehousing logistics and transportation services.

2. Outsourcing Will Save Your Business Costs

Using a third-party logistics service will reduce your overall logistics costs. You’ll avoid distribution infrastructure investment, systems investment, and fleet investment and maintenance. You’ll share freight costs with other shippers, and reduce liability in operations. The carrier always assumes liability for freight operations. You don’t have to be responsible for drivers, worker’s compensation, or physical damages

3. Flexibility and Agility

It’s very challenging to adjust your internal space to align with distribution needs. Third-party logistics companies can ramp both space and labour depending on needs. Outsourcing will allow your logistics costs to parallel your revenue stream.

In addition to this, you have quick access to new markets. The right company will bring in inventory and have you ready to ship sooner than you would on your own. Third-party companies have skilled labour. They can hire temporary workers without adding permanent costs to their operations. You’ll expand your business faster in a variable cost environment.

4. Improve Customer Services and Expectations

Third-party companies are more attractive to deal with. They offer high volumes of steady and predictable freights. This makes it harder for small businesses to negotiate freight costs. If your products or services are in high demand, it will make more business sense to use a third-party company so your customers experience no delays. 

Shoppers’ delivery expectations are expanding rapidly. Most are expecting Same-Day Deliveries or Next Day Deliveries. To manage these demands, third party logistics companies have tapped into automation. This is one of the most significant benefits that you’ll gain from outsourcing your logistics needs. 

5. Business Performance and Focus

When dealing with a third-party logistics company, you’ll gain perspective. They are exposed to many challenges across different industries. As a result, they’ll offer the best services and practices for your business. 

You’ll gain more control of your business as the logistics company will offer enhanced systems that manage all the necessary processes. They provide sophisticated reporting and real-time visibility capabilities, which makes it possible for your business to operate seamlessly.

You’ll improve continuity, and your business will continue to grow without any setbacks. The company will offer dedicated teams of operators, and engineers that’ll optimize and analyze processes.

6. Improve and Optimize Your Supply Chain

Outsourcing your logistics services will free up your time, and a wealth of resources as well. You’ll have time to manage other core aspects of your business while professionals take care of your inventory logistics needs. These professionals will ensure that all your business needs are met. They’ll achieve this by leveraging cost-effective and highly-efficient strategies.

They’ll offer expertise and tools to restructure and optimize your supply chain. They’ll also utilize their software and technology to ensure your orders arrive precisely when and where they are required. They’ll eliminate inefficiencies and improve all aspects of your supply.

7. Leverage a Stronger Resource Network

Most logistics companies offer an extensive resource network that leads to significant advantages. A professional logistics company will utilize exclusive relationships and volumes of discounts. This will minimize overhead costs for you. In turn, your business will thrive in more ways than would be possible with in-house warehousing.

In addition to all these, you’ll have a larger geographical footprint. 3PL companies allow inventory logistics at multiple fulfillment locations. This reduces the shipping distance, which in turn reduces the shipping costs. You may be able to break into the international eCommerce sooner than expected. 

Bottom Line on Warehouse Logistics

All in all, your business may highly rely on professional warehousing and logistics service providers. Outsourcing your logistics services will drive operational proficiency for your business. You’ll benefit from expert knowledge and enhanced skills from professionals that will take your business to the next level.

Understand that not all 3PL companies are the same. You have to do in-depth research before settling for the right one. There are many companies and you’ll certainly find one that works well for your business. Find a company that has the experience, scalability, technology, efficiency and cost savings.

If you’d like to know more about warehouse logistics, kindly check out our website. If you have questions or you’re looking for warehousing logistics services, feel free to contact us.


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