Why Should Startups Consider a Third-Party Logistics (3PL) Partner?

By Guest Author | logistics | November 17, 2021

One of the most common questions that come to the minds of small businesses is whether they should outsource their fulfillment to a third-party logistics provider (3PL) or not. This thought occurs because of the early stage they’re at in the current time. Enterprises contemplate if it all makes sense to handle the fulfillment independently and allocate the capital towards marketing, sales, and business growth. 

However, partnering with a 3PL can be a great option as these can be assets for helping startups in Dallas. These help in managing their order fulfillment as well as other essential elements of building the product company. 

What is a Third-Party Logistics (3PL) Partner?

A third-party logistics company is the one that takes over the supply chain operation and other aspects of a company. Thus, their work revolves around getting the company products to the customers. 

At a basic level, their work includes receiving, picking, warehousing, packing and eventually shipping services. The best part about them is that they are the experts at all-things logistics because they streamline the process and simplify, are quick, and cost-effective for customers. 

Why are Logistics Vital for Startups?

The key personnel of startups usually focus on product development, marketing, financing, and sales. It is because these functions are essential for getting the startup off the ground. Since very few startups have experience in logistics, this presents sizable risks and gaps, which a 3PL can efficiently address. 

Some other benefits of partnering with 3PL are:

  • Cost-savings:

Outsourcing your fulfillment needs to a 3PL dallas service tends to save costs tremendously. Thereby, it is wise to reach out to an expert to learn how to optimize the process. Their assistance helps you identify everything- right from proper packaging to getting customer feedback and managing returns. 

Outsourcing to a logistics partner can help save money as these offer shipping discounts. They also provide warehouse and labor savings, materials and have the requisite expertise in managing orders. 

  • Inventory Management:

With an increase in order volume, businesses in Dallas find themselves struggling with inventory tracking and timely order fulfillment.

The experts in fulfillment suggest having the service to help manage the flow of your inventory. Also, the professionals have capable systems like scanners and barcodes, which provide valuable insights for following up on customer orders. Once the errors reduce, customer satisfaction rises to unexceptional levels. 

  • Scalability:

All startups have a common goal, and that’s building a lasting business. A professional logistics partner helps you scale by providing flexibility for meeting your business and operational needs. 

Since fulfillment centers hold massive inventory, they can expand without worrying about managing and operating their facility. They can maintain the fulfillment of products while you iterate and innovate new product versions. 

The best part about having an established 3PL is that these experts help guide your startup into new sales channels. Their assistance aids in exploring new horizons and determines the seasonal demand much better than you can do!

The Bottom Line

Having the right 3PL, startups tend to provide their customers with the best eCommerce purchasing experience. They also help you manage your day-to-day operations, especially as your business grows and evolves. 

Thereby, if you wish to stay on top of the core functions, make sure to partner with a 3PL as their expertise helps in growing sales and cutting future costs.