Are you currently handling your own logistics? You’re not alone. Most businesses start out managing their own warehousing, order fulfillment, order processing, and distribution. But more often than not, there comes a time when your business gets to the point where you have to outsource your logistics to a third-party logistics (3PL) provider.
From a business standpoint, it makes sense to use a public warehouse with 3PL services since warehousing, distribution, and logistics are not your company’s core activities. So why use valuable capital on them?
But how do you know if your business has reached the point where it would be better served by outsourcing your warehousing, distribution and other logistics services? We’ve put together these three key signs that indicate your business needs a third-party logistics provider.
Sign #1: You’re getting behind in processing orders.
If your business is getting backlogged filling orders on a regular basis and mistakes are occurring, it’s a sign you need help with your order processing and order fulfillment functions. Sure, you can add more staff, but consider this: Is adding more expenses to a non-core business function something that will help your business be profitable?
A 3PL already has the resources you need and can transition your processes over to theirs in a few days. As an example, Brendamour Warehousing, Distribution & Services has a highly automated system for order fulfillment and order picking. It’s designed specifically to get orders prepared for shipping quickly and accurately.
As your company grows, your order processing and fulfillment will become even more challenging, so it’s best to have a 3PL in place to seamlessly and effortlessly handle that growth.
One of the many advantages of outsourcing to a third-party logistics company is its scalability. It can easily scale up and down as your business dictates and you pay only for the amount of services you use.
Sign #2: It’s difficult to handle peak seasons.
Just about all businesses have busy seasons, but it’s how well they are handled that determine their profitability. Many companies go the traditional route of adding additional staff and renting out storage space. But what happens during the slow seasons when you can’t justify those added business expenses?
It takes a lot of time and resources to continuously hire and lay off staff and negotiate short-term rentals. A less cumbersome and efficient solution is using a 3PL because you only pay for the warehouse space you need and the services you use. It’s the ideal scenario for dealing with peak and slow times of the year.
A public warehouse with distribution and logistics services, like Brendamour Warehousing, has the expertise and technology to quickly and seamlessly adjust resources when product movement is in high demand and to scale back when demand is less.
Sign #3: Inventory issues are slowing down order processing.
Out-of-stocks, mislabeled inventory, damaged goods, too much inventory. Your business has probably experienced just about all the inventory mishaps that can occur. But if inventory issues are disrupting operations, it’s time to look into a public warehouse with logistics services.
When shopping around for a public warehousing and distribution solution, be sure to ask about the functionality of its warehousing management system (WMS). Not all systems are as sophisticated in offering you the best in inventory management.
We’re proud to say that Brendamour Warehousing has the most technologically advanced warehouse management system. Besides allowing us to accurately and efficiency inventory your goods, it gives you 24/7 Web-based, real time access to your inventory levels. You can also submit orders and receipts, track orders, and see shipping status at any time of the day and from wherever there is Internet access.
We’re Here When You’re Ready
When your business is ready to transition to a 3PL, we hope you consider Brendamour Warehousing, Distribution & Services. We have a proven track record for utilizing the latest in technology and applying industry best practices to provide you with the best in warehousing, distribution and logistics services.
Contact us to learn how we can optimize your current logistics processes and provide an even greater positive experience for your customers so you can focus on the core aspects of your business.