Reasons to Outsource Warehousing and Distribution Services

Irrespective of whether you are a start-up company or a large company looking to expand your business, outsourcing can prove to be an excellent and smart strategy for survival as well as profitability. Today many businesses outsource their warehousing and distribution services so that they can focus on other aspects of their business. Let’s look at few compelling reasons which make this move, a smart idea.

Ease of Scaling

With the inventory requirement and transport needs taken care of, any company gets plenty of leverage to venture into new markets, introduce new products, etc. For any new market, it is quite difficult to accurately forecast its warehouse space required or level of distribution services needed. Outsourcing gives you the flexibility to scale your logistics as per the needs. It helps to mitigate increased costs and helps you better manage inventory levels.

Amalgamation of shipments

A third party logistics provider can easily combine your entire inventory warehousing and transportation needs under one roof. You can manage your shipments at different locations in the same timely and efficient manner instead of sporadic shipments. This also proves economically beneficial as the 3PL provider company caters to various business houses and thus can offer you unbelievable discounts.

Experience and Expertise

Many business owners and managers lack sufficient knowledge and skills on supply chain which makes this aspect of business, a challenge for them. However, they find it advantageous to outsource this aspect to a 3PL provider who with his in-depth knowledge and sufficient experience can offer you the level of service and efficiency that makes the vast difference between serving your customer and losing your customer.

Access to Solutions

For most business and especially for smaller ones, shortage of funds is always a problem that prevents them from investing in technological solutions which in turn proves their biggest barrier in capturing new markets and sustaining old ones. However, a 3PL provider would always have the latest warehouse and transportation management systems like radio frequency identification and other inventory tracking methods. This helps a company meets its client’s demands without any investment and thus acquire a competitive edge in any of its markets.