Your business is growing exponentially as a result of client growth, more sales, and increasing profits. Knowing it’s time to outsource a 3PL service will be greatly beneficial to your company’s bottom line as your 3PL can assist with complex logistics. According to Allied Market Research, the global 3PL market was estimated to be worth $1,027.71 billion in 2019 and is expected to grow to $1,789.94 billion by 2027.
You Have Increasing Costs
Your business is experiencing rapid growth, your workload begins to increase, making it difficult to keep up with the new pace. You may find yourself recruiting new staff, purchasing new machinery and equipment, and procuring more storage space that ultimately effects your bottom line. In addition to business expenses rising along with growth, according to Logistics Managers’ Index, overall logistics prices including transportation, warehousing, and distribution reached a record in November. 3PL services will help your company cut these costs by utilizing their standardized and flexible systems to meet your growing business needs.
Your Staff Are Overwhelmed
Taking on new customers and products within your business may leave your staff feeling overwhelmed. Increased product demands may make it difficult to process orders on time, or your staff may not have existing expertise that allows them to efficiently work on product. Outsourcing a 3PL will pair your company with experts who can efficiently take charge of that product, allowing you to focus on the bigger picture and cut labor costs.
Your Business is Expanding
Growing your existing distribution network, setting up a supply chain, and considering how you will pick, pack, and ship new products are all things to consider when expanding your business. However, starting this process can be overwhelming as you might not know where to start. A 3PL service can help your business smoothly transition to new markets and help you offer new product.
You Have Poor Inventory Management
Low inventory, poor visibility, and operational inefficiencies can increase safety stock as a cushion against these issues. Storing excess stock is not only a financial burden but can leave your warehouse over capacity causing product damage. Your 3PL partner will provide the tools that can accurately predict order demands and allow you to view your current inventory.
Properly managing your business growth will help you determine what aspects of your company will benefit most from a 3PL service provider. As an experienced 3PL provider, NewStream understands how rapidly businesses can grow and the difficulty of keeping up with these changes. We provide comprehensive supply chain management that will relieve your team of these daunting tasks so that you can love your supply chain again.
Ready to take your business to the next level? Schedule a meeting with one of our experts today!