Warehousing is one of the most important links of any supply chain process. With the shift in market dynamics, the way warehousing has transformed from just a storage function is not anymore a surprise. To tackle the growing complexities in warehousing process and maintain a competitive edge, outsourcing your warehousing operation to 3PLs is the best step forward in the right direction. How 3PLs put together their expertise, knowledge, resources and robust technology to tackle the challenges in your warehousing process and make your business gain profit?
The 5 reasons listed below would give you the answer you are looking for –
1. Tackle fluctuations in demand
If you manage the warehousing process on your own, you can easily imagine how tough it would be to handle the load when your business grows with the increase in demand. You might need additional storage space, manpower etc. for meeting the demand requirements. This is where 3PLs bring in the scalability factor to accommodate the demand variations by employing extra manpower, adding storage space, implementing technology and so on. You can enjoy this sort of flexibility when you have the right 3PL taking care of warehousing process.
2. Why block capital?
When you make the decision of owning the warehousing facility, you end up investing a huge chunk of your capital. Not only this, over a period when operation becomes complex, you need to put additional capital in acquiring the much-needed assets – more rack systems, employ more manpower and enhance the IT infrastructure to sustain your warehousing process. This leads to your business getting hit due to capital shortage as important activities come to a halt. Now think of a 3PL who will not only provide you the warehousing space but would act as your extended team providing you needed assets, expertise and IT systems like WMS, TMS, Order Management System etc. whichever you may need. This way you would be charged on a usage basis as operational expenditure by the 3PL, thereby saving your valued CapEx.
3. Remove operational pain points
A lot happens under the warehousing roof – inbound, outbound, inventory management, manpower mapping, order management, cycle count and so on. If any of these processes fails to live up to the mark, there is a little chance that it doesn’t impact the overall supply chain process. Professional 3PLs understand these challenges fully well and make sure each process is backed by SOPs and best-fit technology under the expert eye of capable managers.
4. Cut down the costs, enhance efficiency
You would love to see the direct benefits that outsourcing of warehousing process brings to your business. 3PLs understand there is plenty of competition they face from other service providers, so they keep their pricing competitive to stay ahead. This brings more cost savings for you, without any compromise on the efficiency of warehousing process.
5. Continuous value addition
Proactive 3PLs look to be innovative to enhance the overall processes adding more value to your overall operation like reduction of order processing time, implementation of tracking systems etc. They treat your business as their own and keep looking for available opportunities which can potentially be beneficial for your business. This is the add-on which you get with experienced 3PLs in addition to warehousing management which is their prime responsibility.
These 5 points about outsourcing your warehousing process to experienced 3PLs ensure that you will fetch better returns than otherwise. What is noteworthy is that they equip you for staying ahead of the competition in the long run too. It is advisable to look for the 3PL who aligns their capabilities with your business needs.
Holisol is a leading supply chain organization providing solutions in retail (end-to-end fulfillment), Auto & Engineering (packaging & supply chain) and Consulting. Holisol works on the value proposition of Design-Implement-Manage to offer customers an experience of working like their own extended team, with affordable strategic and operational expertise.
Holisol has a workforce of +300 supply chain enthusiasts who are continuously building value through leadership, innovation and relationships. For more information visits us at www.holisolscs.ae
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