How Small Businesses Can Grow By Outsourcing Supply Chain Logistics

In today’s world, more and more customers are shopping online. As a result, your small business may be struggling to keep up with the demands associated with order fulfillment and the costs associated with it and other related areas of your business. If this is the case, it may be time to consider outsourcing your supply chain logistics. As to why it’s such a good idea, here are some of its biggest advantages. Outsourcing your supply chain services allows you to enhance your warehousing capabilities, improve your inventory management, reduce costs, and leverage your resources. In other words, it allows your business to cut expenses and boost growth. If you are trying to get a foothold as a small business and grow during a time when online sales are booming, follow the tips below.

Enhanced Warehousing Capabilities

When small business owners start out, their products are often crafted, packed, and shipped from their own homes. However, eventually entrepreneurs need to grow to storing inventory in physical stores or warehouses, and it’s important to streamline these options to best meet your customers’ needs. By relying on third-party logistics for your small business, you can gain access to enhanced warehousing capabilities. Rather than try to create more and more room at your site, you can gain instant access to larger facilities that are climate-controlled and secure. As a result, you may be able to expand your product offerings, since you’ll now have the room for additional inventory.

Inventory Management

Supply chain third-party logistics solutions often help with warehouse organization and management as well. In today’s world of inventory management, customer service is all about having the technology needed to let you and your customers track packages. By choosing to outsource your supply chain management to a third-party service, you gain access to state-of-the-art inventory management systems that can be adapted to your specific inventory system. This allows you to give your customers peace of mind and a sense of security about their purchases. It also lets you stay two steps ahead of any potential losses or shortage.

Reduced Costs

While initially it may cost lest to take care of your inventory management in-house, the bigger your business grows, the more this is going to cost you. As any small business owner knows, money is always tight. Therefore, it’s crucial to take advantage of any new opportunity to make your business more efficient as well as more profitable. By using outsourced third-party supply chain logistics, you can do both. Since you’ll now be linked to centrally-located warehouses and be able to take advantage of the third-party’s relationships with numerous freight carriers, your shipping costs will be substantially lower. This, coupled with faster shipping times, results in less overhead and fewer staff expenses for your small business. It also will help your products reach your customers faster and more securely, which boosts your business reputation.

Leverage Your Resources

A major part of growing as a small business is learning how to properly leverage your resources to take advantage of any possible asset. Since you want your small business to continue growing at a steady pace, working with third-party supply chain logistics providers will let you leverage your financial resources in other ways. Whether this means purchasing some much-needed new equipment, moving your business to a new location, or hiring new employees for key positions, the money you’ll save on supply chain logistics will let you do this and much more. If your business needs to expand rapidly, hire new talent, or advertise more widely, an easy way to get the funds needed is to reallocate what you already have. Chances are, you can easily switch to using a third-party supply chain service and end up spending less than you were previously on inventory and supply chain management. Think about various other areas you can outsource and reorganize, and you’ll discover you have more resources at your disposal than you thought.

By making this choice for your business, you can not only benefit from the years of experience possessed by logistics professionals, but also gain peace of mind from now having a worry-free logistics system for your company.

About the author

Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at or Twitter @BrookeChaplan


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