Storing excess inventory in the family garage was fine when you were first starting out, but now that your customer base – and your product offering – is expanding, where is your precious merchandise going to go? Who will safely and securely store your products and help you distribute them? And how should you plan ahead for future growth? TVI Logistics, Your Business Expansion Partner, call today for more info.
How you answer these questions can mean the difference between evolution and extinction for your company. For solutions you can rely on to expand along with your growing business, consider partnering with a reputable third-party logistics service that can manage all your warehousing, distribution and logistics needs, both at home and abroad.
Warehousing: Who Needs It?
Even if the garage is still good enough for now, failure to prepare for the future can lead to a host of problems; from customers disappointed by out-of-stock items to an excess of waterlogged inventory sitting in the driveway. Beyond a lack of storage space, there are three main drivers that propel small business owners to decide on retaining a warehousing service:
- Scalability: Seasonal businesses, or those that experience certain peaks in sales volume, need to increase their levels of support when it comes to warehousing and transport during busy periods
- Efficiency: Performance improves when using a third-party logistics provider that naturally utilizes better technology, has more staff, and can obtain lower transportation rates than small business owners would have access to with an in-house operation
- Reach: If your company is expanding from local to regional or global, a reputable logistics company can provide supply chain support and expertise in cost-saving, hassle-reducing areas such as Foreign Trade Zones.
Outsourcing to a 3PL
There’s no doubt that outsourcing to a third-party logistics company can help small and mid-size businesses focus more on their core functions and spend less time and resources on warehousing, distribution, order fulfillment and other elements of supply chain management. With the rise of so many 3PL companies, however, the question becomes: How do you choose the best logistics solution for your business?
The answer, of course, is to do your homework. Ask some key questions, which you can then hold up against a set of pre-defined criteria determined by the scope of your business activities. After all, your goods – raw or finished, assembled or separate – are the lifeblood of your business, and you can’t trust them with just anyone.
Some key facts to ascertain include:
- Whether the 3PL has sufficient warehouse space and personnel to handle your required volume of goods and deliveries
- The nature of the proposed warehouse facilities (owned, leased) and what type of storage is available (i.e. temperature controlled, security, ceiling height, etc.)
- What logistics technology and processes will be used in the warehousing, picking/packing, order fulfillment and shipping of your goods, if applicable
- Whether there are sufficient strategically placed locations to cover your planned distribution network
- What the management and workforce/labor structure looks like, including customer service and communications personnel and policies
Your Business Expansion Partner
As your business grows, TVI Logistics is ready to meet these challenges – and exceed your logistics expectations. Whether you’re moving out of the garage or ready to switch to a best-in-class logistics partner, we offer tailored solutions that meet your unique needs, whatever industry you operate in. To find out more about how TVI Logistics can help take your business to the next level, subscribe to our email newsletter or fill out our Contact Page.