The right third party logistics (3PL) partner is essential when making the commitment to outsource your company’s needs. The demands that are placed on scaling your labor, production and warehouse space require you to consider a strategic partner in these areas. Let’s take a look at these three areas now so you can focus back on your core competencies.
Labor
Where labor is considered, all businesses have seasonal changes in demand. Can your staffing handle the ebb and flow of these busy seasons? Can you afford to pull people from core business to work on seasonal, non-core high-demand operations? If the answers are no, then you should take a look at 3PL providers. A 3PL will only charge you for the services you need, can scale on demand for you, and reduce the labor risks of being over or under staffed.
Production
Issues in assembly can bring production to a crawl or even halt them altogether. When production problems come into question, any delay should cause you to take a hard look at your supply chain and inventory management. Increase productivity and reduce production touch points by outsourcing your light assembly to a 3PL partner. The 3PL can handle parts storage, building the tedious sub-assemblies, and supplying them in a timely fashion so your line runs smoothly. It is vitally important to keep your production flowing, so don’t allow the lack of supply chain management to hinder your bottom line.
Warehousing
How you forecast your inventory will determine if you have too much or not enough of certain items, and will greatly impact the valuable available warehouse space you have in-house. A quality 3PL partner will have warehouses that are large enough to accommodate your needs, are strategically located, have space for expansion during heavy shipping periods, and are close to major highways.
In summary, cost is important, but your ability to satisfy your clients is paramount. You can only do this by focusing on your core business, and outsourcing the rest to a strategic 3PL partner.
