3PL services have become indispensable for eCommerce companies to meet their supply chain & logistics demands. Here’s when to hire one for your business.
Indian eCommerce has experienced immense growth, especially after the global COVID-19 pandemic. However, this growth followed revenue growth, which resulted in meeting the rising customer demand. In fact, the development of eCommerce and eRetail in India also brought about a paradigm shift in customer expectations. Hence, every online brand or business wants to deliver the correct products to their customers in perfect condition and at the right time.
As companies grow, their infrastructural and supply chain requirements change, and they need to scale up per business requirements. Scalability might easily be one of the most important features of a professional third-party logistics service provider. Coping with the business growth for an eCommerce business means adding resources, office spaces, and handling more stock, not leaving enough time to take care of products and marketing. Hence, it is always smart to outsource the complete supply chain and logistics operations and hire the perfect 3PL partner.
Indications that You Require a 3PL
There is no exact time of the year to determine whether you require hiring a 3PL provider instead of continuing to handle the logistics with your in-house team. However, some so-called signs indicate the time has come for you to hire a professional.
Here are some of the signals that you should note:
- Increasing costs. When your business grows, it puts pressure on your supply chain and logistics operations as it struggles to keep pace with the growth. With business growth rises your labor costs, other related costs of material handling equipment, and other facilities. It is imperative that you manage your finances well, yet it is a good business decision to hire a 3PL partner as they handle logistics in bulk.
- In-house team overloaded. When your business is growing, it is even more essential for you to focus on your products and marketing. In a rush period, your managerial staff needs to ensure the smooth running of operations. In such a situation, if your in-house team takes care of the logistics operations, they might get overwhelmed by the load. Hence, it is always best to leave the job to the experts and hire a 3PL provider.
- Customer service complaints. Your customer is one of the pillars of your business. Always be aware if your customers are complaining and not getting an effective resolution. There could be multiple reasons. Hence, leveraging a 3PL’s experience and expertise in this area will help you find a quick solution.
- Mismanagement in inventory handling. Inventory carrying costs can considerably burden a company’s financial statements. A company might get compelled to increase its safety stock as a buffer if there are issues of low inventory accuracy, minimum visibility, and operational inefficiency. However, that is not a resolution and rather a financial burden. So, there is a need for an expert 3PL who can provide you with real-time visibility, data, and insights for optimized inventory management.
- Expanding to a new market. While your business grows, it is natural that you might want to venture into a new market. There are multiple activities involved in the expansion such as budget-friendly material handling equipment acquisition, locating a facility, and establishing intelligent stocking layouts. However, you are overwhelmed and find yourself clueless about where to start. Here comes the requirement for an experienced 3PL well-versed in the new market.
Conclusion :
If you are expanding to the international market, having a well-trained logistics partner in your corner is crucial to handle your first shipments and start crossing continents. Remember, for a thriving business, you need the right 3PL provider for the same!
About XPDEL:
Founded in 2018 and headquartered in Los Angeles, California, XPDEL recently launched its expert fulfillment services in India. Our advanced eCommerce Fulfillment Technology Platform has made it effortless for XPDEL’s clients to integrate and improve speed to market. Our offerings cater to a wide range of customer experience-based fulfillment and logistics solutions for eCommerce, powered by industry-leading technology platforms. Our partnership with eCommerce brands enables them with advanced technological facilities with real-time data and actionable insights in our dashboard.