third-party-logisticsWhen you start your own business, you may tend to rely on your own abilities and you will most likely facilitate everything yourself. In other words, from acquiring or manufacturing stock to the delivery of orders, you do it all. Company growth is fantastic and it's every business owner's goal. However, once your business becomes increasingly successful, the demands also increase and you will no longer be able to handle everything on your own. This is why so many businesses choose to partner with a shipping company to relieve the pressure and allow owners to focus on other pressing operational issues.

Understanding Third-party Logistics

Third-party logistics providers make it easy for businesses to outsource some or all of their supply chain by providing a variety of logistics solutions. Some of these solutions include:

  • Warehousing

  • Picking and Packing

  • Order Fulfillment

  • Packaging

  • Transportation

  • Freight Forwarding

  • Inventory Forecasting

What Are the Benefits of Third-party Logistics?

When you partner with a shipping company, you will enjoy a number of benefits that will impact your business immediately and in the future. Some of the main advantages of third-party logistics include:

  • shipping-company-and-your-businessLower capital investment - From a physical standpoint, when you use a third-party logistics company, you will no longer need a large warehouse and fulfillment space to stock your inventory. This immediately helps bring your overhead costs down. You will also have no need for order fulfillment or warehouse management software. Not only does this software carry an upfront cost, but you also need to take the time to learn how to use it or hire somebody who has the knowledge and experience to handle all your needs. With all this extra money in your budget, you can focus on other ways to grow your business.

  • Less time-consuming - If you have to manage all of your own orders from start to finish, you will know just how physically and mentally demanding it can get. Especially during your busiest months. Not to mention the amount of time needed to select, package, label, and send each order. You will either need to spend more time at work or hire more staff to carry out these daily functions. Instead, when a third-party team gets involved, they take care of everything on your behalf. Which means that you need only focus on your clients, employees, and other essential management issues, marketing, and so on.

  • Decreased transport costs - Your fulfilment coordinating team has the means and working relationships to obtain the lowest shipping rates. With pick, pack, and ship methods, you can keep your shipping costs as low as possible. This means that you can offer lower transport rates to your clients and this will attract even more business because customers are attracted to lower prices! All too often, customers will shop and add items to their cart before abandoning their order due to high shipping costs. By keeping these costs low, you avoid this substantial loss of business.

  • Greater flexibility - If there is one thing that every business owner and manager knows, it's that there are highs and lows throughout the year. For example, certain holidays or types of weather can increase your sales while the same tend to decrease when the demand is no longer as great. If you handle packing and shipping yourself, you could run into serious trouble during these busy months. You may have trouble getting all of your orders out on time and you could also run out of stock. If you hire additional employees during this busy time, you will have too many staff members during the quieter months and they will end up being a substantial expense. When you work with a third-party logistics team, your needs will be taken care of no matter how busy it gets. There is no need to change anything on your end and your staff can focus solely on keeping your customers happy.

  • Lower labor costs - When you use a third-party logistics company, you will not need to hire staff to pack and fulfil orders. It's not only their salaries that are an expense, but also benefits, workman's compensation, and similar related costs. Yes, logistics companies do charge a fee, but when you compare this to the amount you would spend on salaries as well as other costs, it's clear to see which option is best for your budget.

At SPARX Logistics, we offer a wide variety of solutions that will help you grow your business and achieve the highest levels of success. Our professional logistics solutions include E-commerce fulfilment, parcel delivery, import, and export, as well as storage and warehousing services. Call 1-833-577-7279 now to find out more about our custom logistic solutions designed to suit your needs.