When you are starting a new business, it is vital to get all aspects of your supply chain down pat, as it is essentially the backbone of your business operation and largely determines success. All parts of the supply chain must be looked after, and this can be done by examining its stages. Within the storage/distribution phases of the supply chain, 3pl warehousing sits firmly as the prime option to ensure success.

These services involve outsourcing the storage of your products to a third party company with significant experience in all things supply chain. With professionals handling your storage, you can ensure that your products will be kept safe and sound and can be retrieved for distribution when ready.

What makes this so great is that these third party companies will typically own these storage spaces, and thus will be able to grow with your business as demand picks up. With a new business, you will experience a surge of growth initially, meaning that your business needs to be able to scale. With 3pl warehousing, scalability is a top priority.

Here are 3 ways that 3pl warehousing is advantageous for new and established businesses.

Pay For Only What You Use

In a model without 3pl warehousing, you will have to rent storage space for your products. As your business grows, you may find yourself renting space that you are not actually using. This can end up driving up costs, and you will be spending more than you should, which is not good for any business. With 3pl warehousing, you are only charged for the exact amount of space that you are using. Rather than having to pay for extra space, as you need more but not enough to fill it all, which means you will only pay for the space your products are using.

Provide Better Customer Experience

Customer experience is everything and is directly correlated to how well your business is perceived and its subsequent reputation. As such, using 3pl warehousing can help to improve the customer experience. This is because the products which are produced can be easily retrieved and accessed through the third party storage system, and you are able to utilize all the entire supply chain benefits. With 3pl warehousing, products are stored efficiently and can be retrieved easily and distributed in quick time for the customers to enjoy. This results in a better customer experience and will improve the reputation of your business.

Resource Network

Using 3pl warehousing means you gain access to a vast network of resources provided by the third party company. These resources are immensely helpful in managing the supply chain and the logistics processes that come with it. Some of these 3pl resources include the latest management technology, labour, storage areas, qualified and experienced professionals. Without the use of these services, you will have to aggregate and buy these resources yourself, which can end up being costly. Going through an outsourced party means that you gain access to all of these services, and to people who know how to use them effectively for your business operations. This is invaluable and is a primary reason why these outsourced providers are so vital to a business.

Here at BCR, our team of qualified and experienced professionals will be able to provide 3pl warehousing and the benefits that come with it. 3pl warehousing provides an incredible wealth of resources which are crucial to a business operation, and assist in every step of the way in the supply chain process.

For assistance with your supply chain, and how to manage it effectively, our team is here to help out!