Third party logistics is the outsourcing of the logistic services for your business. It’s a popular method of management for companies who have a wide distribution network or don’t feel that logistics are a core competency of the company. There are many companies that specialize in 3pl in Maryland, and many businesses find that replacing or complementing their current internal logistics is a solution that benefits their business. Below are some reasons you may want to use a third party logistics team for your company.
Operation of a Seasonal Business
There are many businesses that have a peak selling season and operate at full force during certain seasons. Using a 3pl in Maryland allows you to focus on the core competencies of your business without having to worry about the packing, storing, labeling, and shipping of your products. The outsourced logistics company handles all aspects of that area of your business so you can focus on marketing and selling. Using a 3pl for a seasonal business also allows you to store your items off-season and have a full inventory ready to go when the selling season hits.
Build a Multi-Location Distribution Network
Have you considered expanding the distribution area of your business? Are you ready to conquer other territory and increase your client base? With 3pl in Maryland, you can distribute locally in Maryland but also build your client base in places like Virginia or New Jersey. Using a third party allows you to cut costs while still getting the most effective distribution. You can ultimately use a 3pl to help network to other areas without a large initial investment. It’s also a way to test the waters of expansion and see if that’s the direction you want to take your business.
Superior Technology
Another reason to use a third party is the superior technology utilized my most outsourced logistics companies. You may find that the technology used is far superior to anything you use internally and helps better manage your inventory. Most companies will use technology that allows you to easily assess your current inventory and manage the other logistics areas of your business without needing to install expensive equipment or software. With these three reasons, you can see why using a third party to manage your logistics may be the right path for your business.
