If you own a business that imports, exports, transports, or manufactures goods, you know that storing your goods safely at the lowest cost is a crucial requirement for success. If you own a small business, private warehousing makes the most sense until it is no longer a viable option for your business.
Then you start considering expanding your storage. While you have several options to choose from including renting and leasing a warehouse, none beats the efficiency of hiring a third-party logistics provider (3PL).
3PLs do not just store your staff. They manage your inventory, advising you on the inventory levels you need to carry based on inventory turnover.
Are you wondering whether you should hire a 3PL Warehouse In USA? Below are 3 sure signs that you need to.
1. You are spending too much on warehousing
In business, you want to make sure that every dollar you invest generates profit. That is why you need to be very lea with your storage space.
Have you leased some space that you hardly fill? Are you paying for a warehousing room that is too big for your immediate needs? If yes, then you are wasting valuable money that could be making up your business profit.
When you hire a 3PL warehouse, you only pay for the space you use and expand as you go!
2. You have a new customer base
Today’s customer is one who demands prompt services. A few delays here and there and they have jumped ship to follow your competitors. Your ability to deliver goods in time is one factor that will set you apart.
As your business grows, you are likely to get customers distributed around different geographical zones who are interested in your product. You, therefore, need to take your goods closer to your customers.
Of course, you can go round setting shop in every new place if you have the finances, but what if you do not?
Again, you still need time to evaluate if there is enough market in a new area before you go all in. Using the services of a public warehouse can help you save costs. You only have to rent out the space you need and you can expand as your client base increases.
Moreover, when you have a warehouse near your customers’ location, you incur less shipping costs. That translates to lower prices for the customer.
3.Your business is growing fast
If your business is growing fast, it does not make financial sense to invest in a private warehouse. That is because your future capacity will eventually outdo the current size of your storage space.
Another issue for a fast-growing business is that you start having trouble keeping up with inventory. A 3PL warehouse is can help you stock as per your demand so that you can keep growing.
The kind of warehousing you choose determines whether you will make a profit or a loss. It also affects your ability to meet customer needs in time. When you are no longer benefiting from your current warehousing plan, that could be a signal that you need to hire 3PL warehousing services.