What is Third-Party Warehousing?
Transportation logistics and inventory management are core components of the production and shipping process, but not one that many manufacturers specialize in. After all, operating at the top of your field necessitates a laser-like focus on what makes your product great.
This is where third-party warehousing comes into play. In today’s marketplace, a large – and increasing – number of corporations are opting instead to outsource these services to an intermediary: one dedicated to logistics and related services.
Why Use Third-Party Warehousing?
There are a number of reasons why third-party logistics (“3PL”) services may be not only acceptable for your company’s needs, but may even be preferential to keeping these operations internal, including:
Developing and maintaining an in-house logistics system is a lot of work, especially if you haven’t already retained staff with an expertise in the field. Even if you elect to hire new people, it adds considerable bloat to your corporation. Many manufacturers elect instead to concentrate sharply on production, and leave logistics to the professionals who already possess decades of experience and world-class equipment.
It’s expensive to acquire the cutting-edge equipment and staff required of a full-fledged logistics operation – but if you try to run one without making the investment, expect costly mistakes and all-around inefficiency. There is a third option: finding a third-party operation with the necessary systems in place, who can handle your needs at a fair price.
Just because operations aren’t taking place directly on your company’s property doesn’t mean that you’ll be left in the dark regarding shipment, inventory, and facility status. Our clients have on-demand access to up-to-date information about all the factors that concern their products.
Constantly cutting-edge service
It’s in the business interests of a 3PL to refine their systems as new technology becomes available, or as the costs of each intermediary step in the distribution process fluctuate. Manufacturers reap the rewards here, taking advantage of new systems at no additional investment cost on their part.