5 Reasons Your Manufacturing Business Needs A 3PL
The business world is filled with corporate jargon and can include buzzwords, slang, and euphemisms to make communication unnecessarily complex.
While 3PL on face value might seem like another boggling term set to confuse – it is not. 3PL, or third-party logistics, refers to outsourcing logistics operations to experienced providers.
That empowers businesses across multiple industries to delegate operational tasks to external companies to allow them to focus on core business activities.
Read on to learn more about why manufacturing businesses need a 3PL:
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Cost Saving
3PLs reduce manufacturing labor costs by handling warehousing and logistics, allowing manufacturers to reduce their workforce or move them to other departments.
They also leverage their networks to negotiate better shipping rates and optimized transportation routes – which significantly reduces freight and delivery costs, resulting in a more predictable, cost-efficient model.
When inventory levels are managed efficiently, storage costs are reduced and overstocking is a thing of the past.
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Improved Efficiency
The right 3PL can manage several aspects of the supply chain, from warehousing to transportation and everything in between. That will reduce bottlenecks, improve efficiency, and allow your teams to focus on coming up with new product ideas.
The main focus of logistics teams in the manufacturing industry is order fulfillment to get orders to customers as quickly as possible. Partnering with a reputable 3PL can help you efficiently manage your supply chain with minimal input from your teams on the floor.
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Scalability
3PL value-added services help manufacturing businesses scale by providing expertise and resources to handle most aspects of the supply chain.
They can quickly scale up or down based on seasonal growth and demands, allowing manufacturers to adapt to changing market needs as required.
With the right balance of people, processes, and a reliable 3PL, manufacturers can set themselves apart from their competition.
3PL providers enable businesses to expand into new domestic and international markets – and who would say no to growth like that? Scalable market growth is always a plus!
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Real-Time Tracking
Improve the operational efficiency of your manufacturing business by utilizing a 3PL for real-time tracking.
Real-time tracking and reporting are beneficial for manufacturing businesses because they provide instant visibility and transparency. That information enables data-driven decisions and allows teams to improve quality control, reduce waste, and gain a competitive advantage.
By tracking the movement of materials, orders, and production processes, manufacturers can identify inefficiencies in the workflow, and allow for real-time adjustments to improve production.
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Enhanced Customer Service
Manufacturers can use a 3PL to enhance customer service by streamlining the order fulfillment process.
3PLs are known for their expertise in warehousing, packaging, and order fulfillment – all of which have a direct impact on customer service. They ensure goods are delivered on time and in good condition – meeting the demands of your customers.
3PLs implement proactive problem-solving to anticipate issues and provide solutions before they become customer service complaints.
In Conclusion
The manufacturing industry is growing rapidly and any manufacturer would benefit from a more innovative approach to supply chain and logistics management.
Reach out to a reputable 3PL near you to discuss your business’s needs in more detail.
