Top 5 Reasons to Use a 3PL

1. Cash Flow

Increase your cash flow by reducing investments needed for warehouse space, technology, and labor to complete your supply chain management needs.  Whether packaging for critical orders or fulfilling your rework needs, 3PL providers leverage shared resources to provide cost effective solutions.

The 3PL business model provides OEM’s superior cost control, enhanced throughput and service levels, and greater utilization of assets. Furthermore, it can significantly reduce liabilities in labor, overhead and inventory through this shared investment.

2. Flexibility

Your customized supply chain needs continuously fluctuate with market conditions.  A 3PL provider can more efficiently scale warehouse space and labor up or down depending on your seasonal periods.

Let the 3PL operate your parts distribution center. All services are customized to fit your requirements, and the provider can manage all or any segment of your supply chain process from inventory management and ownership to fulfillment and customer service management.

3. Quality Assurance

3PL providers have software systems in place to manage your supply chain.  Furthermore, quality assurance and continuous improvements allow for on-going accuracy and efficiency.  In addition to quality management systems, some 3PL providers also use green practices throughout—reusing and recycling, while continuing to find ways to reduce waste.

4. Experience

Outsourcing your supply chain needs allows more time for you company to focus on its core competencies.  A 3PL can deliver expertise and innovation into your supply chain through their specialized services. They are knowledgeable about industry best practices, and stay up to date with technological advances.  Furthermore, they have years of experience distributing product to your market, giving them the knowledge necessary to be efficient, on-time and forecast roadblocks before issues arise.

5. People

People make it happen.  A 3PL increases your cash flow, allows for flexibility, ensures quality, and has experience in your industry. However, without the people – the intellectual capital – the program cannot be successful. The people know the product, the marketplace, the do’s, and the don’t’s.  They care about increasing wealth for both your company and their own.

Take the time during the selection process to visit each 3PL provider. Learn more about its employees at every level. Their people will be the ultimate differentiator.

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