Business owners are often in a dilemma of outsourcing their storage and warehousing functions to a third-party logistics (3PL) company. It is especially so since they think that their businesses will incur an additional expense. Below is an extract with intricate details of why you should outsource your warehousing function to a 3PL. 

Ability To Grow Your Business

Outsourcing your warehousing means that your staff do not have to spend man-hours planning storage and logistics. This gives them time to concentrate on other business functions such as marketing. In such a way, you can scale your operations within a short period since you do not have much on your hands. Alternatively, you could introduce new products to your clients. 

Ease Of Distribution

When you leave warehousing to the experts, you can be certain that you will have an easy time distributing your products. Businesses that opt to store goods at their premises often experience product shortages since they have to transport their products for long distances to the market. 3PL companies have conveniently located warehouses. As such, products will reach the market on time. 

When working with a 3PL, you do not have to worry about renting large warehouses or storage spaces. The 3PL will allow you to rent a section of the warehouse and share it with other customers. This is beneficial during low seasons when there is little demand for your products. The 3PL will ensure that your business does not go down due to low cash flow and hefty operating expenses. 

Inventory Management 

Most businesses do not know how to manage their inventory. More often than not, they will have too much or too little stock. 3PL warehouses integrate modern inventory management systems that give real-time information regarding the amount of inventory you have in storage. These systems will guide your production team since they know the products required. Other than inventory management, the 3PL warehouse can also help out with other functions such as packaging and rebranding. 

Managing Business Risk

What would happen if the storage space in your business suffered a fire? In this case, you would suffer untold losses. Once you hire a 3PL, you transfer this risk to them. As such, you do not have to worry about product damage or loss. Since the 3PL will store these products in different warehouses, you can be certain that you cannot lose all your products at once. 

You now understand why you need 3PL warehousing to manage your warehousing function. When hiring a 3PL, assess the company reputation and experience to establish if they can handle your business.