If you are not seeing efficiency in your self-distribution and warehousing costs, or are starting a new business and looking for retail logistics solutions, third party warehousing and distribution can be the ideal solution. A good 3PL provider will serve as a strategic partner, bringing efficiency to your supply chain and providing the flexible solutions your retail business needs for growth.
What is a 3PL Provider?
A 3PL (third party logistics) provider is a company outside of your organization that provides logistics services and solutions. Some 3PL companies provide integrated logistics services such as freight transportation, warehousing, inventory management, pick and pack, final mile delivery and installations. 3PL services can be scaled and customized to meet each customer’s changing needs.
Who Uses Third Party Warehousing and Distribution & Why
Rather than pay the increasing costs of warehousing and distribution operations, many retailers prefer to invest the capital into additional locations, or reserve it to reduce their corporate debt. Third party warehousing and distribution makes that possible.
According to a report by supply chain management market research and consulting firm Armstrong & Associates, 86 percent of Domestic Fortune 500 companies use 3PL services. Some companies such as Wal-Mart use 50 or more 3PLs.
Chipman Relocation & Logistics provides logistics solutions to major retailers including NIKE, Walgreens and Uniqlo. We also partner with smaller companies that need cost-effective retail logistics solutions. Read about Chipman’s warehousing and distribution services.
For many retail businesses, third party warehousing and distribution is the only viable option. The costs associated with owning and managing a warehousing, from space and infrastructure to labor expenses, is simply not feasible. Nor is the cost of self-distribution.
Benefits of Third Party Retail Warehousing and Distribution
The benefits of integrated third party warehousing and distribution services for retailers are many. The following are only a few:
- Lower operating costs
- Avoid the associated costs and risks of owning and managing a warehouse
- No warehouse labor wages and benefits
- No large capital investment in equipment and technology
- Ability to easily and quickly scale warehousing and distribution needs
- More economical shipping
- Reliable, efficient and cost-effective movement of freight, from origin to destination
- Expert supply chain management
- Improved customer fulfillment and level of service
- More time to focus on your core business
Whether you are searching for consolidated transportation, warehousing, and delivery services or want to outsource part of your retail warehousing / distribution, Chipman Relocation & Logistics can provide the solution you need. Contact us to discuss how partnering with Chipman can help you grow your business.