How a Dedicated Fulfillment Partner Can Increase Your Bottom Line
Lately, it seems that with each passing day, there’s a brand new layer of complexity added to the global supply chain. From simple, temporary disruptions to catastrophic breakdowns, we’ve seen it all over the last few years.
They say that no person is an island, but we think that applies equally to entrepreneurs and their respective enterprises. A globalized level of adversity has made it nearly impossible for business owners to exist in a vacuum. In other words, everybody needs help from time to time. Enter dedicated 3PL partners like Symbia Logistics.
Today, we’re going to talk about the advantages of partnering with a dedicated fulfillment partner, and working with an outside logistics agency can have very beneficial and tangible effects on your bottom line. But first, some definitions.
What is a Dedicated Logistics Partner Exactly?
What exactly is a 3PL provider, and what kind of tasks, functions, and business processes can they handle? 3PL stands for “Third party logistics,” and it refers to a professional logistics provider who specializes in different areas of supply chain management. Some typical services that a 3PL offers include:
- Fulfillment and fulfillment prep
- E-commerce fulfillment
- Shipping and transportation
- Overall supply chain management
Ideally, a dedicated fulfillment partner is a 3PL company that combines some or all of these services into an end-to-end solution custom-built for your warehousing and fulfillment needs. This is a critical component of the 3PL experience, especially given the fact that external processing services are surging. According to a recent Yahoo News article, the 3PL industry currently generates $992 billion a year. With a cool compound annual growth rate of 9.94%, that figure is expected to balloon to more than a trillion dollars by mid-decade. In the next section, we’ll take a look at how the 3PL industry’s overall success can transfer to your own bottom line.
How Can a Dedicated Fulfillment Partner Improve Your Bottom Line?
With a clear conception of what 3PL entails, let’s proceed with our discussion; how can securing a dedicated logistics partner supercharge your bottom line? Below are six different ways that professional logistics drives profitability in the current economic landscape.
1. They free up capital to grow your business
So, you want to go it alone? That means buying (or renting) a warehouse space, maintaining a fleet of delivery vehicles, building out supply lines for your raw materials, developing a distribution model, purchasing warehouse management software (WMS), employing a workforce composed of various labor specialists, et cetera, et cetera.
Creating your own end-to-end solution, especially in this market, is going to take significant startup capital, as well as a virtual litany of ongoing costs. Unfortunately, those costs aggregate quickly.
By centering your logistical operations on a dedicated fulfillment partner, you free up significant capital that could better be used toward building your product lineup, distribution outlets, brand, and overall service footprint.
2. They free up valuable time by making the 3PL provider central to your operations
Monetary capital isn’t the only consideration when it comes to starting –and maintaining– your business. There’s also human capital (in the form of time) to consider.
Each of the logistical aspects listed in the previous section represents a significant time sink if you intend to keep all your operational elements in-house. Sourcing infrastructure like warehouse space, vehicles, and equipment is time-consuming. Hiring, training, and other HR functions are cost and time-restrictive. In fact, every component of your operation has both a tangible and intangible cost associated with it unless you seek assistance from a dedicated logistics partner.
3. They assume warehouse management functions for your business
Warehousing is no easy task. In fact, it is one of the most cost-restrictive aspects of logistical operations. From the physical infrastructure itself to staffing considerations to the equipment necessary to carry, store, monitor, and track your inventory, each and every element is complex and requires significant capital to achieve. That’s not including purchasing and implementing a WMS to help provide you with meaningful oversight.
Partnering with a dedicated 3PL professional allows you to offload costly and time-intensive warehouse management processes onto a trusted logistics provider. The result? A radically improved bottom line.
4. They assume fulfillment management activities as well
We’ve said it before, but it bears repeating: partnering with a professional logistics service is an end-to-end solution. That means your 3PL provider handles both the warehousing functions AND the fulfillment side of the business.
When selecting a third party service, look for them to offer fulfillment-based amenities, such as:
- Pick and pack
- Order kitting
- Cross docking
- Fulfillment by Amazon integration and prep
- General order processing
Contracting with third party logistics offloads the majority of the operationally intensive aspects of your business so that you can get back to doing what you do best: selling your product!
5. They bring cutting-edge tech to the table
What differentiates a market leader from the rest of the pack? Is it superior customer service, a superior product, or something else entirely?
In reality, market dominance is a mosaic composed of all these elements working in concert, but it is impossible to deny the impact that the latest, greatest technology has on your market agility. But cutting-edge technology isn’t free. In fact, implementing the latest gadgetry, infrastructure, and software solutions can be cost-restrictive, especially for smaller, more regional manufacturers and merchants.
Partnering with a dedicated 3PL provider can help your company source the latest technological innovations at a fraction of the cost. Level up your operations and service footprint immediately through dedicated third party logistics.
Implementing a Dedicated Logistics Partner in Your Operations
We’re living through one of the most competitive global markets in history. Market factors change on a near-continual basis, adding new stressors to the global supply chain. Unless your ducks are all in a row, it can be hard to turn a significant profit given factors like these. Fortunately, there’s help on the horizon.
Partnering with a dedicated 3PL provider can mean the difference between ending the year in the red versus the black. If you’re looking to inject increased solvency into your business, Symbia Logistics can help. Please contact us today to start your journey toward a more agile, profitable business.