The Importance of Third- Party Warehousing to an Expanding Retail Company

October 7, 2019

An expanding retail company must use all the tools available today to come out on top of the competition, including third-party warehousing or third-party logistics. Oftentimes, companies that provide this type of warehousing are called 3PLs. 3PLs provide crucial services to retailers to help them achieve their omni-channel or online goals for success. They are essential to the ever-increasing need for efficient order fulfilment that a growing retail business requires. We explain further details about 3PLs and the role that one of them can play in your retail endeavour in the following.

What are 3PLs?

3PLs are companies that offer third-party warehousing services that can encompass storage, distribution, packaging, inventory, order fulfilment and other services that retailers may require for their daily operations. In other words, one of these companies can manage your supply chain responsibilities on an outsourced basis. Choose one that offers the exact services that you need to take care of what you do not have the facilities or staff members to address efficiently or cost-effectively.

The Ways that Third-Party Warehousing is Changing Retailing

Now that you understand the companies that provide this type of warehousing, you need to learn the ways that they are changing retailing. Thanks to online shopping portals, the majority of consumers consider free shipping as the most important feature that multi-faceted retailers can offer to them along with quality products. On top of expecting shipping at no charge, shoppers expect to receive their merchandise quickly. Amazon is a prime example of a retail company that has responded to this with next-day delivery and delivery within one to two hours is certain locations. In an attempt to keep up with this demand, retailers are turning to 3PLs to ensure that their supply chain operations are managed efficiently.

Another way that third-party warehousing is changing retailing, especially for those retail businesses that are 100% online, is that they do not need to rent distribution space in a brick-and-mortar location to store merchandise and fulfil their orders. Instead, they can use the 3PLs for this purpose.

Advantages of Hiring a Third-Party Logistics Company

Retailers must have a strong supply chain to stand up to their competition today. With the above help and more from the 3PLs, they accomplish this effectively. Examples of the benefits of relying on one of these companies include:

• Obtaining expert services to manage your supply chain

• Accurate inventory methods

• Unique packaging options to consider

• Financial savings in comparison to moving to a larger location or hiring additional staff

• Increase in customer satisfaction, sales and overall profitability

For further facts about how third-party warehousing can help your expanding retail company, consult with Challenge Packaging and Warehousing Solutions. Our company delivers expert 3PL services to a wide assortment of businesses including retailers.

Contact Us

Address: Unit 3, 8 Weddel Court Laverton North,
Vic 3026

Telephone: (03) 83609736
Fax: (03) 83609738
Email: info@cpacks.com.au

Optimized by NetwizardSEO.com.au