Throughout the past three weeks, we have discussed how startups and small businesses can utilize 3PL relationships to enhance business practices. Although a lot of information has been shared, there are common themes to help companies focus on what is most important for establishing and growing quality partnerships and business relationships.
Incubator for the Entrepreneur
With small businesses growing at an all-time high, and about 530,000 new business owners starting up each month – how do you set yourself apart from the others? Establishing yourself, connections and your brand into the new landscape is an enormous undertaking, so finding quality partners is a must. Outsourcing storage, distribution and transportation is a logical place to start, as this is not a new practice. Many of the largest companies in the world have 3PL partnerships for their logistics and supply chain projects. 3PLs give entrepreneurs the ability to hit the ground running and focus on their core competencies as the brand begins to build and establish in the marketplace.
Emerging and Growing
In order to build quality brand awareness and loyal customers, consumers must be impressed throughout the entire buying process. First, a quality product is a must! How can a 3PL help small businesses develop quality products? By allowing you to focus on what you do best. When you are focused on core competencies – such as developing products, delivering stellar customer service, or manufacturing final pieces – those parts of the business tend to thrive. If your energy is invested in areas such as storage and distribution, there is less time for what you do best. Also, by outsourcing these services to a 3PL partner there is little to no capital investments – freeing up your cash for developing the brand! There are also opportunities for flexible growth and costs. Growing and shrinking inventory is what a 3PL does best, meaning that you only pay for what space and services you use each month. Costs and rates are negotiated so that the entire process is transparent and you get the most out of your investment.
Getting that great product to your customers in a cost effective and efficient manner is extremely important, as well. That’s the 3PL’s core competency! We make sure that your products get to their intended destination with accuracy, efficiency and safety through the entire supply chain process.
Advice for the Small Business
Richard Murphy’s advice for small businesses has been one of our favorite blog posts of the year! See the full post here. Here are some of the highlights:
“As you grow, always focus on core competencies, which may expand into different areas of expertise.”
As pointed out in the last paragraph, focusing on core competencies is huge! You focus on what you do best, we’ll do the same.
“Make sure that the 3PL can do all of the things you need within your supply chain, unless you’re willing to have multiple vendors.”
Look at the certifications, procedures, quality control and value added services.
“Good Partners can help you reach outside markets.”
Logistics firms can give recommendations for quality partners in other markets, or can even go with you to other cities if the scope of project is mutually beneficial.
The most important thing for startups and small businesses to do when thinking about outsourcing logistics operations is to:
“Find a Partner not a Vendor.”
-Richard T. Murphy Jr.
As the backbone of the American economy, startups and small businesses should have every opportunity to succeed and grow into successful and established brands. 3PL’s can help with the entire supply chain from start to finish. If you have any questions please contact us, we would love to help! Be sure to follow our blog for weekly updates on 3PL operations, benefits, technology.
Have a wonderful day!