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Outsourcing Warehousing: Is It Worth It?

  • Rhiannon Garber
  • March 30, 2023

Warehousing is easily one of the most important aspects to any business as it stores all of your physical product for sale or distribution. As a business owner, it is important that you consistently assess your inventory and how well your current warehousing situation is working for your business. If you begin to notice difficult workflow, overflowing and disorganized inventory, and lack of technology it may time to consider outsourcing your warehousing to a reputable 3PL.

Access to Industry Expertise

When your business partners with a reputable 3PL, your company will now be able to utilize the provider for the know-how and operational expertise based on your industry. Partnering with a 3PL to outsource your warehousing will not only save your business the time and resources needed for on-site warehousing but a 3PL will also know the ins and outs of your products and understand the requirements of your current partners, how to optimize your warehouse in a way that effectively services your customers, and can even help improve your business processes to drive efficiency and productivity.

Innovative and Impactful Solutions

Not only will a 3PL benefit your business by providing necessary warehousing space and the technology to accommodate your business needs but having a Warehouse Management System (WMS) can help to increase your supply chain visibility and connectivity. Warehouse Management Systems will ensure that your supply chain is efficient and streamlines the supply chain process, making sure any issues that arise are provided with and effective and efficient solution. Typically, a 3PL will have strong technological capabilities which will then allow your business to leverage their systems and continuously improve your logistical capabilities.

Flexibility Needed to Scale Profitably

Though your business may have the knowledge and expertise when it comes to warehousing, partnering with a 3PL can improve the flexibility of your business by setting up and scaling your warehouse model as your business demands begin to shift. Often, during a growth period it can be difficult for businesses to keep up with overflow and new demands thus utilizing a 3PL provider can help your company handle these details. 3PLs can not only provide the flexibility within your warehouse but can help to continually streamline inventory processes as customer demands change as well as distribution channels.

Adds Supply Chain Value

Outsourcing warehousing to a 3PL provider can greatly benefit your business as integrating a logistics company into your daily processes can add value to your own supply chain. Specialized services such as kitting, packaging, and assembly are just one part of the services that 3PLs typically offer to help set your business apart from the rest. Adding various service to your supply chain can increase your supply chain value and these services can help reduce your backlog and transportation costs.

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As a business owner, making the decision to partner with a 3PL to fit your warehousing needs can be a daunting task. As a reputable 3PL provider with over 30 years of comprehensive supply chain management, NewStream understands just how intimidating it can be to partner with a 3PL. Our teams of experts have the knowledge and expertise your business needs to succeed and expand your warehouse!

Ready to outsource your warehousing? Let’s chat, our experts are ready to help!

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