TOP 10 Reasons Why You Should Outsource Logistics Operations
Outsourcing to a Third-Party Logistics Provider (3PL)
E-Commerce markets is growing faster than ever. Efficiency in all operations becomes more important in global markets. Consumer trust increases and cross-border sales grows rapidly. In order to compete in this rapidly growing market, Online retailer must find innovative ways to engage its customers.
What happens if the retailer cannot focus all of its energy on core competencies? If the online retailer can’t focus on customers the competition is lost. This is why, more online retailers choose to outsource to a 3PL provider. In fact, over 85% of Fortune 500 companies use 3PLs.
There are many reasons to outsource logistics services, but you first need to understand how outsourcing will affect your business and whether it will save you costs or not. Here are the top 10 reasons why outsourcing to a 3PL provider is beneficial:
- Enhanced Customer Satisfaction. Without the cost of acquiring new warehouses and new technology, your Online retail can focus more on customer service. Also, 3PL provider specializes in logistics services. They know how to manage shipments and reduce costs for their clients, as well as deliver better experience. This leads to enhanced customer satisfaction and builds partnerships which can last a lifetime.
- Scalability and flexibility. Businesses become more flexible due to a 3PLs ability to scale space, labor, and transportation according to inventory needs. There is no need to stress about high and low seasons, as transitions can be handled more smoothly. If your business is in need of more space, a 3PL provider is happy to meet your demands.
- Freedom to Focus on Critical Operations. Instead of performing logistics services yourself, outsourcing it to a company that has expertise and experience in carrying out logistics operations effectively will help you free up your resources and allow them to focus on more critical operations
- Reduced Back-office Work. Most 3PL providers have sufficient manpower and the warehouse management system already in place. They can process thousands of shipments. Outsourcing logistics back-office tasks to professional vendors therefore frees up your time and increases your productivity
- It saves time and money. With the utilization of a 3PL you have the ability to reduce costs by eliminating the need to invest in warehousing space, transportation, or the staff required to execute your growing logistics process. You don’t need to worry and spend time on paperwork, freight billing from different companies, staff training, staffing or logistics optimization, because this is an area of expertise for 3PL providers.
- Economies of Scale. Your online retailer might end up spending a lot on trying to scale up your logistics perform. However, a 3PL provider can help you achieve economies of scale. The 3PL partner specializes only in providing logistics services, thereby they are able to back your growth with flexibility.
- Continuous optimization. The 3PL providers are masters in resilience and coping with change. They have the resources at hand to make the proper adjustments needed in each circumstance. Most 3PL providers improve continuously the supply chain, ensuring that your needs are met in the fastest, most efficient and cost-effective way. In short, 3PLs can help maximize profits, reduce wait times, and thus improve customer service.
- Prioritizing advanced technology. By outsourcing logistics to a 3PL partner, you are automatically with latest software and technology there is concerning logistics. 3PL partner is continuously improving its efficiency and meeting the requirements of tomorrows logistics. You have no need to purchase the most up to date developments in technology yourself.
- Maximizing growth rate. By using a 3PL provider, you are able to save time and resources. This directly affects the growth rate of your online retail. 3PL providers have operations in strategic locations in order to ship cost effect worldwide. With this benefit, businesses now have the ability to expand their market with minimal costs.
- Quality and PRO-services. Outsourcing to a 3PL provider ensures that you now have more resources to focus on more important things. The advanced technology, multiple assets and expertise that come with 3PL providers also guarantees that your logistics needs will be satisfied. Also, since 3PLs thrive on efficiency, you can expect numerous aspects of your supply chain to improve as well. Some 3PL providers also offer you PRO-services in order to fulfill your orders with the best way possible.
How to Select the Appropriate Service Provider?
Once you decide to outsource your logistics, you need to identify the right service provider.
Here are some factors to be considered:
- Warehouse management system and integration to you Online Store.
- Shipping methods they provide you.
- Transparent Pricing (monthly fees, startup fee, fees per title etc.)
- Warehouse location and capacity.
- How the receiving of goods is handled?
- Scalability when your operations grow – pricing and capacity.
- International shipping possibilities.
No matter what the stage or size of your e-commerce is, OGOship will offer you the logistics solutions and PRO services that will bring your business to the next level.
OGOship makes it possible for companies to easily outsource their entire physical goods warehousing and logistics. We specialize in e-commerce logistics. Our key values used in our service design are “ease of use”, “simplicity” and “full automation”. Outsourcing your warehousing and logistics couldn’t be easier! Couple of clicks and you’re go. Please do no hesitate to contact us and get started with growth!
Check us at my.OGOship.com
Why people choose OGOship?
No Fixed Fee
€0 Set Up for Start Up
No Minimum Order Volume
No Minimum Contract period