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3 Signs you Need a 3PL Partner

posted in Supply Chain Management by

At the beginning of the year, we unpacked exactly what a third-party logistics (3PL) provider is. Since 3PL partners are incredibly important to the success of many large companies, it’s important to know when your business could benefit from this partnership.

Processing the transactions of the supply chain is complex work. Companies will inevitably hit a point when they will need to make the switch from in-house logistics and supply chain management to a 3PL partner. Our team has put together three signs that tell you it’s time to consider switching to a 3PL provider.

1. Costs are Going Up

Nearly every business wants to grow, but being able to sustain that growth can come with increased costs. These costs can vary widely and can add up quickly.

A 3PL partner can step in to help reduce some of these costs and improve order fulfillment time. One great way a 3PL partner can help is by offering you discounts on services. The volume that a logistics partner ships far exceeds that of an individual business, which means 3PL providers receive quantity discounts. Then third-party logistics partners, like TOC Logistics, pass those savings along you.

2. Your Staff is Overwhelmed

With business growth comes growing pains. Sometimes that comes in the form of increased demands that current staff can’t sustain. When your staff is overwhelmed and there is no easy answer in sight, it might be time to consider a 3PL partner. Third-party logistics partners have the capabilities, relationships, and resources to make sure that you’ll always have appropriate staff levels to meet your demands.

3. Customer Complaints are on the Rise

Another sign that your in-house team isn’t effectively handling operations is that customer complaints are piling up. An increase in sales seems like a great problem to have, but in-creased operations can also create a spike in mistakes.

Overwhelming order loads can pop up from seasonal busy times or rapid growth. When the sales exceed your staff’s ability to fulfill those demands, mistakes and accidents can happen that affect end-users. When this is the case, the company has to decide whether they want to hire more staff, purchase new equipment and freight, or if they want to outsource to a 3PL partner.

These three indicators are strong signs that it’s time to consider starting a relationship with a 3PL partner like TOC Logistics. There are several other indicators that your company may benefit from a 3PL, as well. Are you curious about what those signs are, or about what TOC Logistics can do for you? Contact us today.

12 Dec, 19

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