Why is a 3pl warehouse a good idea? 

If you are a start-up and gradually spreading your roots into the market, but do not have much funding to set up a warehouse for growing demand? 

Don’t worry, that’s why the 3pl warehouse ( Third-party Logistics ) comes into the picture to take your worries away!

There were times when warehouses were only used to store the produced goods for the customers. 

Nowadays, however, warehouses offer companies of all sizes a host of logistics services and warehousing. Most 3pl warehouse companies provide order fulfillment, pick and pack, custom labeling, and other additional value-added services to essential product storage.

How does 3pl warehouse work? What are the advantages of third party logistics? 

The cost accounting, in house inventory and order fulfillment, gets a bit complicated. There are numerous aspects and logistics to think about, and your team will have multiple rules to follow. It is often hard to place hierarchy to the value of order fulfillment handled within the corporate. To make it easy, one can hire this type of 3pl warehouse where you will get an entire logistics team to take your worry away. 

Why is A third party logistics warehouse a better option? 

A new business in growth- 

Start-ups are in a precarious situation when they are in a growing stage. The lack of experience, less capital, no real estate for adequate distribution & warehousing, and many other reasons might hinder the growth process for a company. A 3pl warehouse, in this case, will charge the fees and handle everything possible to take those tasks off of your shoulders. 

During Periods of Growth/Recession-

If you see a boom in your demand, congratulations, Mostly good warehouse companies offer decent expansion possibilities. In fact, FWS is the leading Warehouse service that facilitates expansion for your needs. 

Or, if you are facing a downfall in your demand, then they will reduce the cost and space for you. 

Geographic Expansion

People love your product out of your target area. Great, now you have to fulfill their demand as well. In that case, the 3pl  warehouse will help you expand to a new geographical location as well. 

That means you do not have to buy new real estate, train people, build a warehouse, or get a new distribution service center. Even if you are a stable business and can afford such tasks and expenses, a third-party logistics warehouse would be a good option for you. 

Whether your company is a start-up or expansion phase, choose your distribution and warehousing options wisely as it will directly affect the customer experience. Some of the warehouses might be cheap and reasonable for you, but do not blindly believe what the people say and do your research. Maintaining your people and facility might be helpful, but outsourcing has many benefits that will eventually work for you. 

Order management and retailers logistics take a lot of time and resources. In a nutshell, it takes an entire team bigger than your operations team to handle these processes. That is why they matter so much. Remember, even the right product with late delivery brings in a bad review.