Starting a business is no easy task. On average, 21% of new businesses fail within the first year, and less than half of those initial winners make it to year five. Considering those somewhat unfavorable odds, it’s critical startups have the means (and the capacity) to scale quickly and efficiently.
Here’s a closer look at how more startups are using third-party logistics partners (3PLs) to get their businesses off the ground, scale quickly and adapt to changing consumer demands.
Access to Better Technology and Established Networks
One of the mistakes startups tend to make is trying to keep everything in-house for too long. While this approach might save on costs initially, the required investment in mechanical equipment, WMS and TMS tech, warehousing space and other moving parts necessary for efficient fulfilment services can quickly evolve into a major pain point for brands looking to expand their reach.
Choosing a reliable 3PL provider grants immediate access to resources like warehouse storage options and established fulfillment processes, as well as expert insights from logistics professionals. 3PLs are also uniquely equipped to aid growing businesses, investing heavily in advanced (and expensive) inventory management systems, cloud tools and AI tracking software.
Additionally, a trusted 3PL will already have a network of trusted shipping partners in place, allowing startups to skip the headache of vetting shipping partners to ensure reliable delivery.
3PLs Can Easily Scale Order Fulfillment
Scalability is the heart of business success, and one of its greatest enemies is a lack of organization. Without clear processes in place, a sudden spike in orders can derail a business and wreck a brand’s customer experience.
3PLs are in the scaling industry, meaning they already have the infrastructure in place to manage demand’s natural ebbs and flows. Logistics partners are also uniquely positioned to grow alongside business partners without sacrificing service quality. With order fulfillment successfully delegated to a 3PL service, the time your team might have spent frantically trying to process orders can now be used to analyze performance and shape future marketing strategies.
Logistics Partners Fortify Supply Chains
Small businesses are particularly susceptible to supply chain disruptions, which is why many startups take advantage of reliable 3PL partners and their established networks of carriers.
Most 3PLs have a selection of fulfillment centers and contracts with multiple carriers. While this doesn’t make them entirely invulnerable to sudden disruption, it does diversify their available shipping options and significantly mitigates the risk of catastrophic supply chain failure. Some 3PLs will even purchase their own delivery vehicles to deliver orders near fulfillment centers, allowing more frequent deliveries and another layer of supply chain protection.
Outsourcing your logistical operations to a 3PL diversifies shipping options, grants affordable access to cutting-edge industry technology and adds a much-needed element of flexibility to startups looking to scale responsibly.
Strengthen the logistics arm of your business today by contacting one of our First Call experts and learning more about how we make supply chains GO!