When setting up shop for the first time, a business owner may have to wear many different hats. One day they might need to focus on developing sales and pursuing potential leads, the next they could be involved in human resources or overseeing the production and delivery of products. This is perfectly normal for a start-up company and it can be beneficial to keep everything in-house and minimise expenditure as much as possible. However, once your business is established, one area that you should consider outsourcing is warehousing and logistics.
Successfully storing and delivering your stock can be very time-consuming and expensive. The chances are, you didn’t start a business because you really enjoy packing cardboard boxes – which is why third-party logistics companies are here to do the job for you.
In the following blog, we take a look at the main benefits of third-party logistics (3PL) and highlight the reasons why so many people are now choosing to outsource this aspect of their business.
What are the benefits of using a third-party logistics provider?
Stock levels and inventories can fluctuate for a number of different reasons. Perhaps you sell more in the summer months than the winter and increase stock levels to supply demand? Perhaps you like to have a spring clean, clearing out discontinued stock and making space for new products?
A storage space that is perfect for your needs at the start of the year, may be far too big or far too small a few months down the line – and, if you have signed a long-term lease, you could potentially end up paying for something that is no longer suitable for you and your business’ inventory.
This is where a third-party warehousing company can be very useful. Rather than making you sign up to a particular sized storage room, for a specific length of time, they offer complete flexibility. You will only be charged for space you are currently using, and the size of this space can be increased or decreased whenever necessary. During slow periods of the year, your products will take up less space and you will pay less for the service and – if you really want to – you can opt-out at any time.
No.2: Less Staff
A warehouse and distribution centre cannot manage itself. If you choose to keep this aspect of your business in-house, inevitably, you will need to hire additional staff to do the job. Not only will this mean extra wages to pay at the end of the month, but it also involves investing time and effort into the recruitment and training process – and, quite frankly, it can often be more hassle than it’s worth.
By recruiting the help of a 3PL company instead, such problems can be avoided. You won’t need to don your human resources hat or saddle yourself with the expense of additional pay. This is all taken care of by the third party logistics provider. It is their responsibility to hire and train the people necessary to store your products and deliver them to customers, as and when required.
No.3: Reduced Expenditure
It may seem counter-intuitive; however, investing in 3PL can actually save you money in a number of different ways. For example, it’s important to bear in mind that a warehouse is not just four walls and empty space. In order for it to be successfully set-up and managed on a day-to-day basis, you will need to invest in a variety of different equipment, including everything from pallet racks and shelving units to forklifts and fire-safety kits – and the cost of such equipment can soon add up.
When it comes to the distribution of your products, a third-party logistics provider will also combine your delivery with that of numerous other clients. In this way, they are able to deliver a much larger volume of cargo in one go and they can keep your delivery costs to an absolute minimum. Effectively, you will be sharing the cost of your regular delivery with other people.
One of the main benefits of using a 3PL provider is that you can take full advantage of their expertise. Most logistics companies have a wealth of knowledge and experience in the industry and, you can rest assured, they will take care of your business’ individual needs in a professional and efficient manner. There’s no need to worry about the day-to-day storage and distribution of your products. You can just do what you do best and focus on making your business a success.
Here at the Graylaw Freight Group, we have acquired over 30 years’ experience in the warehousing and logistics sector, developing our knowledge and learning everything there is to know. We demonstrate excellent logistical ability and expertise and, by using the latest technology and our strong connections, we make sure all consignments get to where they need to be.
Contact the Graylaw Freight Group Today
If you have recently set-up a new business or you’re trying to minimise outgoings, it may seem like the best idea to keep warehousing and logistics in-house. However, using a third-party logistics company comes hand-in-hand with a number of benefits and it is definitely something to consider.
To find out more about the third party logistics services currently available at the Graylaw Freight Group, please feel free to get in touch at any time. Our team of experts are always on hand and, with strong knowledge in this area, they will happily answer your questions and queries. Simply give us a today on 01695 729101 or request a quote and we will get back to you soon as possible.