Warehousing and logistics can seem relatively straightforward for a new business. Inventory comes in, it goes on a shelf, and you ship it off when a customer places an order. You might start with an efficient system, but managing warehousing and logistics becomes more challenging as the business grows. Soon, cracks begin to appear in your system that slow your business down and impact your bottom line.
It might be time to rethink your approach. Here are seven signs that you should consider getting professional warehousing and logistics support from a third-party provider.
1. Consistent Inventory Discrepancies
How frequently is there a mismatch between your inventory records and your actual stock levels? Most businesses can’t afford to check their accuracy with just an annual stock review. Instead, they need precise, real-time numbers to meet customer expectations. Discrepancies can lead to stockouts, overstocks, and frustrated customers.
A 3PL can implement a warehouse management system to provide real-time inventory tracking so you have up-to-date numbers whenever you need them.
2. Rising Operating Costs
Warehousing and logistics costs will naturally rise as a business grows. However, you should see a clear return on your investment for those additional expenses. If you aren’t, it’s time to re-evaluate. High labor costs, inefficiently using your space, and outdated technology can lead to unnecessary operational expenses.
Partnering with a 3PL allows you to take advantage of economies of scale, shared resources, and streamlined operations run by logistics professionals. Outsourcing your logistics can lower your overhead costs and improve your business’s efficiency.
3. Difficulty Scaling During Peak Periods
Seasonal demand spikes, the holiday rush, and promotions can push in-house warehouse operations to their limits. If you struggle to manage increased demand and quickly fulfill orders during those peak periods, it’s a clear sign you need support.
A 3PL can offer scalable solutions to manage fluctuating demands. Your customers continue to get their orders on time without placing more burden on your team or your infrastructure. There will be no more bottlenecks during high-demand periods, and your operations will continue to run smoothly.
4. Space Constraints Slowing You Down
As your business grows, your storage space shrinks. Running out of space can lead to overcrowded aisles, disorganized inventory, and safety hazards. If your facility is bursting at the seams, a 3PL can free up space.
3PLs can provide spacious, well-organized warehouse space tailored to your needs. They can optimize layouts to give you room to grow, and many offer specialized warehousing, such as climate-controlled storage.
5. Lack of Technology for Inventory Management
Manual processes are a recipe for disaster in modern-day inventory management. Modern warehouses rely on automation, real-time tracking, and data analytics. If your business lacks these tools, you might struggle to stay competitive with accurate forecasting, inventory counts, and efficient order fulfillment.
Qualified 3PLs heavily invest in inventory management technology. You can get access to their tech and use it to fuel your business growth without making the capital investment yourself.
6. Unable to Keep Up With Compliance
Compliance with industry regulations, safety standards, and legal requirements are non-negotiable parts of warehousing and logistics. However, staying up to date with all of them can be overwhelming. If your team falls behind on compliance or documentation, it could damage your business’s reputation or result in hefty fines.
A logistics provider can help you navigate complex regulations and ensure your operation meets the necessary standards.
7. Want to Expand Into New Markets
Expanding into new markets or regions is an exciting milestone for a business, but it also presents logistical challenges. Managing warehousing and distribution in an unfamiliar area requires local expertise and infrastructure.
Working with a 3PL can provide you with resources and a logistical network that creates a smooth entry into a new market. From warehousing to final-mile delivery, they can ensure your operations are efficient no matter where you grow.
Let BLS Provide Your Warehousing and Logistics Support
If you’ve noticed any of these signs in your business, it might be time to seek additional warehousing and logistics support. Beitler Logistics Services can help. Contact us today for a consultation about our services and learn how we can make your business more efficient with a streamlined supply chain.