Accommodate growth and an ability to scale
Retail marketplaces are constantly fluctuating, and growth can be sudden and unpredictable, making it incredibly difficult for retailers to predict these changes in advance. An experienced 3PL can be an invaluable asset to both new and growing businesses, providing a long-term solution that helps to facilitate growth by seamlessly growing with your business in the most efficient way possible.
To cope with the pressures of peak demand periods, businesses will need access to sufficient warehouse space and also additional staff to keep up with increased order volumes. However, once demand slows, these become an unnecessary extra expense. A 3PL can provide the flexibility needed to ride out these peaks and troughs in demand by offering scalable warehouse space and staffing. This enables the retailer to keep costs low and efficiency high. Retailers often prefer to move away from logistics services as a fixed cost, to avoid paying for services and labour that are not needed. Due to the 3PL’s ability to flex, costs remain variable based on order volume, directly increasing the retailer’s profit margin.
This increased flexibility and the ability to scale operations both up and down as needed, in line with the changing marketplace, can be a huge advantage to retailers too. It allows businesses to react more quickly and effectively to the unpredictable environment of e-commerce; making order volume increases, changes in consumer demands, seasonal promotions and business fluctuations much more manageable.