For some, the term, “outsourcing” can be scary. Fortunately, there is nothing scary about third party logistics or in layman’s terms, outsourcing your warehousing and distribution services. Below are 3 reasons why your eCommerce business should be utilizing a 3PL.
1. Scalability
If you are a start up or a fairly new eCommerce business or someone who offers ancillary products, scalability is your friend. The ability to scale means that, you don’t have to worry about unused warehouse space or investing in building a new distribution center in order to store and distribute your product. If you are a smaller eCommerce business or subscription box service, you will no longer have to bother your family with using your home as a warehouse. All jokes aside, your family will thank you! Scaling will increase your profitability and allow for you to always be prepared for inventory fluctuations. This is especially so if you offer ancillary products for your customers.
2. Strategic locations
Utilizing a 3PL will allow for you to place your product in warehousing and distribution in locations that are closest to your customer base. It will also allow for you to penetrate new markets by testing the waters in new markets without the commitment of building an in house distribution center. This will help generate customer loyalty by adhering to faster shipping standards that are now an integral part of customer expectations. Placing your product in a strategic location by utilizing a 3PL will lower not only shipping and fulfillment costs but it will provide you with a competitive advantage.
3. Reducing Costs
One of the more obvious reasons for utilizing a 3PL is cost savings. Afterall, most businesses outsource to reduce costs. The reduced costs of utilizing a 3PL derive from process improvement with improved productivity as a result of those who specialize in supply chain management.
Overall, by using a 3PL service, you be fully optimizing your eCommerce business or subscription box service. You will be improving productivity and reducing costs in order to drive profits and generating customer loyalty. In order to start the process of transforming your business with a 3PL service, reach out to our team at Lincoln Distribution by calling (813) 544-5910.