6 Benefits of 3PL for Your Business

Warehouse storage shelving

Packing, product storage and transportation are three key factors you need to have a handle on to ensure your company’s success.

As any business owner will tell you, efficient warehouse storage is crucial. Relying on another organisation to provide transport can be very cost consuming. Wouldn’t it be great if you could bundle all these factors into one easy process? Ever heard of 3PL?

 

What is 3PL Warehousing?

Put simply, 3PL warehousing is the outsourcing of warehouse activities to a third-party provider.

Essentially, third-party logistics, more commonly referred to as 3PL, is defined as the general outsourcing of e-commerce logistic processes. This means a 3PL provider allows your business to use services such as transportation, warehousing, and even picking and packing.

Enlisting this type of service allows you to focus on other aspects of your business. When you expand into new markets or areas, using 3PL is the ideal way to aid growth without excess overhead costs.

 

Benefits of Using 3PL in Your Business

Now that you know what 3PL is, you might be wondering what the benefits are to your business? Keep reading to take a closer look at why your company should consider a 3PL provider.

Cost-Effectiveness

3PL providers such as Dawson’s Fumigation & Logistics, who provide top-notch warehouse storage and transport services, specialise in a variety of logistic functions within the industry.

Partnering with a 3PL provider will save you costs because they have more negotiating leverage regarding storage and transportation. Additionally, using one provider for all your business functions is more cost-effective than having different companies providing each service.

Exceed Customer Expectations

In a fast-paced world, it has become standard to expect same-day or next-day shipping. Delays in shipping processes can easily result in customers opting to use another business. With a 3PL provider, you have access to their extensive distribution network which results in faster, more consistent packing and shipping processes.

Access to Industry Expertise

Irrespective of the business you’re in, it’s difficult to anticipate every aspect that could hamper your flow of business. Using a 3PL provider means they’ll have expert knowledge on relevant topics relating to their industry, such as:

  • Import and export regulations
  • Transport documentation
  • Different state regulations and requirements
  • Shipping container transport requirements
  • International shipping regulations and criteria
  • Best and safest logistic routes across the country
  • Safest warehouse storage practices

Enable Market Expansion

Without a 3PL provider, expanding into new territories can be quite difficult as it requires warehouse storage and transport in a prospective area. However, with this resource on hand, your business can test new markets or new areas without having to spend additional money on warehousing, transport or even labour.

Most 3PLs have an established presence throughout the industry and using them gives you access to their resources in many locations. You’ll be using a reliable logistic system you’re already familiar with, eliminating growing pains with a new company!

Regulate Demand Fluctuations

No matter the nature of your business, there will be times throughout the year or the selling season when you experience fluctuations in demand. While some fluctuations are predictable, others aren’t. This can result in your organisation requiring additional capital to scale up or down.

With a 3PL provider, it’s considerably easier and cheaper to manage peaks and troughs within your business demand. For example, when sales are down, there’s no need to have unutilised resources. Using a 3PL allows you to easily upscale or downsize when necessary and without putting the company at risk.

Minimise Shipping Related Risks

Even a well planned and executed shipping process can have external delays beyond your company’s control. When this happens, business deals could be at risk.

In the event of such unforeseen circumstances, your 3PL takes the responsibility for ensuring that alternative arrangements are made to get your product to your client as soon as circumstances allow. Certain insurances also ensure that your organisation is protected against loss or damage of goods. This can save you effort, time and money.

 

Is a 3PL Provider is Ideal for Your Business?

Dawson’s Fumigation & Logistics specialise in fumigation, transport, logistics and warehouse storage solutions, and can help you figure out if 3PL is ideal for your business. Our expert team can provide businesses – regardless of size – with dynamic fumigation, transport and warehouse storage solutions. Your company’s products can be stored for long or short term periods in secure storage facilities.

If you’d like to partner with a credible 3PL provider with extensive industry expertise, simply contact us on 03 9314 2222. Let’s discuss your business needs and our extensive range of warehousing and logistics solutions!

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