As a small or midsize business (SMB), one of your top priorities is to grow your company, but even as rapid growth is a net positive for your business, it also brings new challenges. One of the biggest hurdles you will encounter is the increased complexity of your SMB logistics.
Thankfully, you can take the hassle out of SMB logistics by partnering with a third-party logistics provider (3PL). Below, we’ll explore what a 3PL is and its benefits to your growing brand.
What is a 3PL?
A third-party logistics provider is an entity that provides a business with a broad range of fulfillment services, including warehousing, distribution, shipping and receiving, order handling, and returns processing in many cases.
Partnering with a 3PL not only means it will manage all of these processes on your business’s behalf so that your workers can focus on your customers, but you’ll gain access to the 3PL’s network of staff, warehouses, and partnerships.
Furthermore, since 3PLs provide logistics services at scale, they can offer better prices on everything from warehousing to shipping, meaning you will save money while alleviating yourself of the headache that is SMB logistics.
5 Benefits of Working With a 3PL
Using a 3PL to manage your SMB logistics processes will empower you to accomplish the following:
1. Cut Costs
The biggest perk to working with a 3PL is the cost savings it provides. The best 3PLs have expansive networks of carriers, plenty of warehousing infrastructure, and the know-how to make everything work together cost-effectively and efficiently.
2. Reduce Labor Needs
You won’t have to hire additional staff to handle behind-the-scenes logistics processes, like picking, packing, or assembly, as your 3PL will do it all, allowing you to keep your staff lean and minimize variable labor costs. Keeping labor and operating costs down is key to ongoing growth, as it gives you the freedom to pursue new opportunities.
3. Improve Efficiency
Managing your SMB logistics processes in-house will inevitably get expensive, meaning you will have to pass some of those costs onto your customers, making your product less desirable. Thankfully, 3PLs are masters of efficiency that keep your costs in check, allowing you to maintain better price points that give you a definitive edge over your competitors.
4. Decrease Training Needs
By managing your logistics processes internally, you will have to train and hire new staff each time you want to launch a new product or expand to an adjacent market. Working with a 3PL erases these expenses, as it will provide access to highly-trained teams that are up for any logistical challenge you throw their way.
5. Use Advanced Tech
The best 3PLs don’t just have the know-how; they also have the best technology, such as integrated transportation and warehouse management systems and various automation solutions. While innovative logistics tech might be outside your budget, you can still reap the benefits of the latest technologies simply by working with a 3PL.
R2 Logistics — Providing Tailored Small Business Logistics Solutions
SMB logistics solutions can be a true game-changer for your growing company. You can break free from growth barriers, reach your true potential, and better serve your customers, all by partnering with a third-party logistics provider.
Still, not every provider understands the nuances of SMB logistics as R2 Logistics does, and we proudly provide tailored solutions to our SMB clients. Are you an SMB in need of some logistics advice? Contact R2 today and we will see how we can help!
