As your business grows, you may find that your orders and the logistics of those orders are becoming too much to handle. This could lead you to hiring staff to handle your logistics and warehouse. Hiring staff has several disadvantages for you including ongoing employee costs, increased insurance and liability fees, and reduced profit flow back into the growth of the company. Instead of hiring in house logistics, consider using a third party logistics service. Here are three of the benefits of your company using third party logistics.
When you use in house logistic staff, you are also using the same resources you have had all along. When you use a third party logistics company, you have your own logistics resources and the resources the third party service has as well. This can give you a much greater range of logistic options. This increase in resources can also help when you have supply issues, transit issues, or issues with customs. With these resources, you may end up saving money and time since you have alternatives to potential downtime issues from customs and transit hold-ups.
Increased Profit Margins
When you go with a third party logistic service, you can free up capital and your resources. This means you do not have to invest in as much transportation time or equipment. You also can reduce your investment in warehouse space and other transportation and logistic related resources. This overall savings can help increase profit margins and help increase your sales potential and the money you push to other areas of your company. Once you begin seeing the streamlining that a third party logistic service can bring, you can start focusing on other aspects of your company to build profit and to increase business resources.
At the time you first hire a third party logistic service, you probably have a limited supply chain. You likely also have limited resources for transportation and for your warehouse issues. As you work with a third party logistic service, you will start to increase your resources as well as increasing your optimization of your own logistics. This can help build your business and can help you put a better foot forward with new companies as you begin to expand.
These are only three of the benefits of your company using third party logistic services. If you are ready to move forward, have your HR team contact several third party logistics management services and narrow down the one that is best for your needs.