8 Advantages for E-Commerce Companies Outsourcing Their Logistics

January 9, 2018 9:25 am

As your e-commerce company grows, it could be advantageous to outsource certain elements of your logistics, using third-party logistics services providers (3PLs).

This allows companies to be flexible at a time when the scale of their logistical requirements is likely to fluctuate quickly.

That’s not the only advantage either. Here are 8 potential benefits for e-commerce company owners teaming with a 3PL.

1. Scale operations quickly and efficiently
A 3PL allows you to scale logistical operations as the market fluctuates without having to invest heavily in new infrastructure. In an industry when future prosperity can rarely be guaranteed, this is a godsend.

2. Leverage experience
If you’re new to the world of e-commerce, it could be that your team is inexperienced when it comes to efficiently picking and packing high volumes of small orders. It could therefore be advantageous to make the most of a 3PL that has masses of experience in this area and a variety of storage mediums like industrial shelving and mezzanines / work platforms.

3. Reduce capital costs
You could pay less tax when hiring a 3PL than you would managing your own logistics. Doing so will also allow you to delay a huge capital outlay until you can be more sure of the expected returns.

4. Test new markets
By using a 3PL, you have the ability to test new markets and products without having to make a major investment in them. This ability to test the waters could give you valuable insights into the potential of a new market, and potentially save money on failed ventures.

5. Place fulfillment closer to end-customers
Most 3PLS will offer multiple locations to clients, allowing you to fulfil orders closer to your customers. The end result is that customers receive their orders faster.

6. Shipping is optimized
As most 3PLs will serve multiple clients from the same location, it can manage deliveries from separate clients into the same truckload. This optimized shipping will make it possible to negotiate lower rates. Efficiently storing supplies on industrial shelving makes handling shipping supplies easy so there’s no downtime.

7. Respond to seasonal peaks
Most 3PLS are used to serving clients with ever-changing products and will design their facilities to handle this with ease. If you’re an industry that typically deals with seasonal peaks in sales, you’re in safe hands. Peak times mean more inventory and supplies are required, which can be difficult to store if you don’t have proper systems in place. Consider commercial steel shelves to handle busy times with ease.

8. Avoid the paperwork that comes with personnel
Recruitment, holidays, sick days, health insurance, pensions. Most small companies don’t have the budget or the personnel to complete these tasks efficiently without it harming day-to-day operations.

By partnering with a 3PL, you avoid the extra paperwork and hassle that comes with recruiting your own employees. For the paperwork that you do have, consider commercial shelving as a storage solution.

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