Emerging into the business world is a large task for many startups and small businesses. Adding everything needed to run a successful business can be a long and extensive process. With all of the tools on the market to help startups succeed, analyzing potential partners and choosing which tools to use is crucial!
First, ask yourself: Which parts of your business can you outsource, freeing your time to focus on core competencies? Is it financial expertise? Product development, such as engineering and manufacturing? Actually, logistics and supply chain partnerships are some of the most common services to outsource. Solid bookkeeping and quality products are both extremely important to your business development. But distributing your products to customers in a safe and efficient manner is equally crucial for growing a loyal customer base, and should not be overlooked.
Most companies wouldn’t even think about buying trucks to handle transportation, so why would you buy or rent a warehouse to handle storage and distribution? Leave those services to logistics professionals – developing great products, growing a customer base, and building a brand are too important for a startup to ignore.
Second, consider ways to grow with the greatest degree of flexibility. Startups with 3PL partners can easily grow when ready, due to the flexible wall storage solutions. Shrinking is also an option during slow times, whether it’s due to seasonal changes or other circumstances. These options are available because you only pay for the space used in the warehouse.
Flexible rates are also a big benefit for our clients. If paying by the pallet makes sense for your project, we can build a custom rate for you, but if you find square feet requirements are a better measurement, we can implement that as well. We work with you to discover the most efficient billing processes.
Third, examine how outsourcing logistics services keeps costs down through the entire startup phase. Operating with minimal capital investments in space or equipment means you have more cash at your disposal to build your brand.
3PLs also are extremely efficient in storing and handling inventory. Our employees are cross-trained on many different accounts, resulting in more efficient workflow processes. If you hire employees, they have to be paid for eight hours of work, whether you need the help or not. Our team can work on a project for a couple of hours, finish it, and then move on to another account. With an experienced management team and efficient time tracking tools, you only pay for the time you use, whether it’s one hour or 100!
With flexible storage, growth, and cost solutions, 3PLs are a great resource for startup companies and small businesses. By allowing you to focus your energy and resources on core competencies such as developing cutting-edge products or building your brand, a 3PL partnership can be extremely important to the growth of your company.
Be sure to follow our blog for weekly updates on 3PL operations and benefits. Next week we will discuss how 3PLs can help guide the supply chain and logistics process through experience and expertise.
Have a wonderful day!