Is doing it all becoming too much?
Many small businesses focus on growth. But how do you handle the challenges that come with it? Keeping up with customer demand, absorbing higher costs, and managing an overextended staff may be testing the limits of your internal capabilities.
If this scenario resonates with you, turning to a third-party logistics provider could be the right solution. Find out how to assess your needs, explore the benefits of enlisting a 3PL and learn what to look for in a quality partnership.
Evaluate your current situation
You may benefit from this solution if:
- You lack the necessary time or resources to effectively manage your logistics in-house
- You can’t execute important initiatives because your resources are tied up in logistics management
- Shipping costs are inconsistent or unpredictable
- Your current transportation technology no longer meets your needs
- Your business is growing quickly and it’s getting harder to keep up with demand
- You want to test new markets, but you’re concerned about how to manage added shipping and distribution
- You’re struggling to consistently meet your customers’ expectations, especially during peak seasons
Can you relate to any (or all) of these scenarios? Let’s examine how collaborating with a 3PL can help.
6 ways a 3PL partnership can enhance your small business
These providers offer valuable services that allow small businesses to focus on other aspects of the operation. These include:
-
Cost savings. Failing to prioritize transportation and logistics needs can lead to costly mistakes. If your business lacks the infrastructure or the resources to build an in-house transportation team, partnering with a third-party provider can provide a scalable and efficient alternative to keep expenses in check. Logistics partners can leverage their widespread networks to negotiate better shipping rates, which translates to lower operational costs for the businesses they serve.
-
Full visibility into your supply chain. Many 3PLs deliver this through state-of-the-art technology that can track shipments and help manage inventory. The data from these tools can offer valuable insights that help boost efficiencies.
-
Risk management. Potential issues like transportation delays, supply chain disruptions and inventory shortages are always present in logistics operations. Teaming up with a dependable provider that has a strong network and contingency plans in place can help businesses reduce risks and ensure continuity, even in the face of unexpected challenges.
-
Access to expert support. An experienced and reputable provider can ease your mind by simplifying even the most complex challenges. They follow best practices to ensure compliance with industry regulations while safeguarding your products and data.
-
Flexibility. Ramp up during peak seasons, expand into a new region or scale back to pivot. You can easily adjust your operations as needed in response to the market.
-
A positive customer experience. With faster and more reliable shipping, 3PLs can help keep your customers happy, so they’ll continue to support and share your product.
What to look for: Elements of an effective partnership
If you’re planning to outsource your shipping, it’s important to work with a provider who can meet your needs. Take these factors into account.
Stability
Does the company have a solid reputation and a proven track record with businesses in your industry? Read reviews, contact other businesses and ask for references to help determine reliability.
Capabilities
How often and at what volume do you need to ship? Look for a flexible provider with a robust network that can scale with your growing business and adapt as your needs change. Seek a 3PL with advanced technology, including real-time tracking and data analytics. These tools can help you improve efficiency.
Customer Service
Are they responsive to your needs? Getting support quickly and efficiently is critical to carrying out your business objectives.
Cost
The actual cost of service is just one factor to consider when vetting a specialized logistics partner. Value also comes in the form of improved efficiency, potential cost savings and an elevated customer experience.
Security
Certifications like Hazmat, FDA, DEA and PCI show that carriers are serious about safety and security. That also applies to the digital world. Your potential logistics partner should also be able to protect your data and resources.
Team up with ArcBest and unlock your potential
With over a century of diverse industry experience, ArcBest understands how smart, customized logistics management can help your business grow and thrive. Learn how to leverage our managed solutions for strategic growth, sustainable operations and customer satisfaction.
