How to Know the Right Time to Move to a 3PL Company

How to Know the Right Time to Move to a 3PL Company

Savvy business owners know that scaling up is essential for long-term survival and growth. Not knowing when or how to scale has caused the demise of many a business. The mistake that some business owners make is in thinking that their business is too small to use a 3PL. In fact, not transitioning to a 3PL company at the right time can hinder growth. So that a business does not “skip a beat” when trying to scale up, here are the signs that it’s the right time to move to a 3PL company.

Transportation is Becoming an Issue

The logistics of getting inventory from point A to point B can be a surprisingly complicated matter. It becomes even more complex when country borders are involved, as it is with the import of raw materials or ingredients for a particular product. And even when country borders aren’t involved, the sheer scale and level of detail required transporting inventory pieces from one place to another necessitates a level of attention that many business owners find overwhelming. A 3PL company is able to seamlessly manage small, medium, and large businesses’ transportation needs. If your business is experiencing transportation delays, errors, and increasing costs, it’s time to move to a 3PL company.

Orders Are Getting Lost

The cost of customer acquisition is something that every smart business owner needs to have control over. Losing just one customer over a lost or delayed order can trickle down into a huge watershed of ramifications that may include damaged company reputation and increased obstacles in attaining new customers. 3PL companies utilize advanced information technology that ensures that every “t” is crossed and every “i” is dotted. They use technology to track customer data, orders, and warehousing operations to bring order fulfillment to a whole new level. There’s almost no chance of an order getting overlooked when your business uses a 3PL company.

Business Volume is Burgeoning

Fast increases in orders are every business owner’s dream. But burgeoning volume in orders can be a business’s downfall if those orders aren’t handled correctly. For one thing, there is the issue of paying for ingredients and/or inventory to fulfill orders. Enough inventory orders must be fulfilled quickly in order to make sure there is money to pay for the raw materials to fulfill future orders. Otherwise, there will be a huge gap in fulfillment that can lead to disappointed customers and/or lost sales. It’s a delicate balance that is only really expertly handled by a 3PL company. A 3PL company keeps things running smoothly so that the pipeline of orders in and orders out keeps flowing without getting clogged up along the way.

When you have meetings with the 3PL company, you’ll be happy to know that they are ready to take on your business needs, even if you weren’t quite aware that you needed them yet. They understand that you will grow into the 3PL company. Your 3PL company is the easiest way to scale your business.

Contact American Warehouse

At American Warehouse, we offer a comprehensive warehousing solution. We’re a 3PL warehouse company with 100,000 square feet in two buildings. We offer scalable solutions in clean and secure facilities in Hudson and Nashua, New Hampshire. Learn more about our warehousing solutions that meet your fulfillment and distribution needs by contacting us today.