If you run a business that delivers goods then you might have experienced some of the pitfalls of doing it yourself. Order fulfillment can be costly and time consuming, so for many businesses a solution for 3pl in Sydney makes sense.
Read on below to find out about the benefits of third party logistics.
Avoid expensive leases and rental costs
The costs for warehouse space in Australia can be very high, especially if you want to base the business close to your company headquarters or the city. Paying for space or long term leases can be a big financial burden for growing businesses.
Purchasing land can also be very costly and is rarely the best move for businesses. If your business needs space for stock then 3pl in Sydney is a great answer to spacing issues.
Logistics companies have access to large warehouses and can offer favourable rates for rental and storage because they often own the spaces or have discounted arrangements that they can offer to customers.
It works in their favour to offer below-market rates if ot results in gaining business for their other logistics solutions, so companies that use their services often have access to very good rental rates and don’t get locked into long-term leases.
Avoid long term contracts and agreements
3pl Sydney companies will not lock you into inescapable contracts or long term agreements, most companies have month to month contracts making it easy for businesses to adapt to the arrangements that suit them and ensuring that they don’t get locked into any long running financial obligations.
No additional staff to hire
One of the most costly areas of logistics management is the cost of hiring new staff to manage order fulfillment. Paying wages adds a lot to the bottom line, and can be especially costly for growing businesses that have only recently grown to the point where they need third-party intervention, but might not yet be at the level where staff are always busy.
Paying for idle time is a poor investment for business. 3pl Sydney companies are a great outsourcing solution as companies are then only paying for the time used rather than dedicated staff.
Focus on the areas of your business that matter
3pl Sydney companies and the third party logistics services that they offer give businesses the opportunity to free up their time and resources to focus on core business areas, rather than dedicating attention to packaging and delivery.
Save on costs
The benefits of outsourcing are clear, it makes sense for many small to medium business for which the cost outlay of establishing the infrastructure for 3pl in Sydney would be far too high. Third party logistics companies are very affordable and make a lot more sense from a cost perspective because they have the scales of economy behind them to reduce cost and because logistics services are the focus of their business.
When should you start using 3pl in Sydney?
A lot of businesses will begin by fulfilling their own orders, and up to a certain point this makes sense. If businesses are not yet at the level where they have a large quantity or regular orders, then paying the monthly cost of a logistics outsourcing solution might not be the best use of resources.
If order packing and delivery are not yet taking up a considerable amount of time then it might not yet be the time for outsourcing, however if growth in sales and orders has taken place then it might be time to start considering 3pl in Sydney.
If you’re business has started to experience a lot of orders or doesn’t have the infrastructure in place to keep up with demand, then it’s a good time to contact a logistics solutions company.