A Journal of Commerce report detailed an across the board increase in third-party logistics (3PL) revenue last year, up nearly 6% over the previous year. One of the 3PL areas highlighted was an 8.4% growth in value-added warehousing and distribution. This is a key trend emerging in logistics that more and more companies are taking advantage of. But what exactly is it, and why should you consider it?
Value-added services allow a 3PL company to take more work off your plate by combining logistics services into a full-service solution. This results in efficiencies that save money on your bottom line, while also providing a superior service, with such elements as improved cycle times, inventory management, and accurate deliveries.
Why Consider Third-Party Warehousing and Distribution Services?
There are many positive reasons for your business to consider a 3PL provider. Here are a few of the major ones that can easily show their value-added properties to your business:
Provides on-demand storage for your merchandise:
The flexibility of only paying for storage as it is needed, means you only pay for what you actually need, when you actually need it.
Removes the headaches of inventory management:
A good 3PL provider has cutting-edge inventory management technology, and the processes set in place to effortlessly manage your replenishment handling. And because it’s all they do, they tend to do it better and more efficiently than you can for yourself.
No need to invest in software or equipment:
All that great inventory software and material-handling equipment in the warehouse is expensive to purchase and keep up. But your 3PL partner can cover all of that through their own warehousing solution to your benefit.
No new staff:
Having a 3PL provider avoids you having to hire and manage your own warehousing staff. Staff you would have to pay and oversee, no matter what the delivery levels are at any given time. With a provider, it’s only as needed.
Seamless links between inventory and transportation:
When you let a third-party provider handle both your warehousing and distribution, the right hand truly knows what the left hand is doing. The provider can manage the entire process of inventory receiving, inspection, sorting, storage, and delivery. The result is a higher quality process that saves you time, money and effort. And happier customers in the end, with more on-time, undamaged, and accurate deliveries.
Turn to a Qualified 3PL Provider for Your Warehousing and Distribution
Diakon Logistics is one of the leading third-party logistics providers in the nation. Contact us today to find out how much value we can add to your company by taking over your warehousing and distribution needs.
