Supply chain disruption is no longer an elusive concept – it has become a very real issue plaguing businesses today. In response, many companies are reevaluating their supply chain strategy to streamline processes and drive efficiency. And to be clear, it’s not just a hurdle to overcome in the short-term, but something to roll into your long-term strategy as well. Here’s how partnering with a 3PL logistics provider can help you address challenges and optimize your supply chain.
Forecast Your Inventory Needs
One way to minimize disruptions is to ensure you have strong inventory management practices in place. Maintaining inventory accuracy is pivotal for an efficient supply chain. Everything from expired inventory to stock-outs can harm the customer experience and your bottom line.
3PL logistics will provide you with inventory management software designed to organize and track goods from order placement through delivery. If your business sells high-value items that require long production lead times, then you’ll want to have a larger volume of inventory available to satisfy customer demand. For companies with quick turnaround times, there’s an opportunity to decrease inventory costs if you’re overstocking items.
An effective inventory management system will do more than just maintain product counts, it’ll also provide actionable insights. For instance, it’ll use data and automation to forecast how much stock you’ll need and the optimal locations to house inventory.
The rapid growth of e-commerce and omnichannel fulfillment has forever transformed consumer expectations. A seamless customer experience and quick, 2-day shipping are non-negotiable today. Factoring proximity into the equation and optimizing your inventory network is pivotal for driving business growth, keeping customers happy, and reducing overall costs.
Consider Alternate Sourcing Channels
Everything from geopolitical issues to global unrest can cause supply chain disruptions. As a result, many companies are reconsidering the countries they are sourcing goods or materials from. Some businesses believe that making this shift will fortify their ability to weather disruptions and reduce turnaround time for getting products to the end consumer.
A 3PL logistics partner can prove valuable when considering sourcing channels. Why? A 3PL can provide drayage for ocean, rail, and air shipments and ensure your goods are moved strategically from point A to point B. They can also help you implement solutions that ensure products are maintained and handled appropriately during transit to minimize damages and unnecessary hits to your bottom line. A 3PL logistics partner will consider the type of freight you’re moving, its origin point, and its warehousing distribution when customizing a logistics solution that aligns with your unique needs.
3PL Logistics Offer Real-Time Visibility
Rising consumer demand for accurate, speedy delivery has put pressure on businesses to improve visibility across their supply chain. From goods in transit to inventory levels, real-time visibility plays a pivotal role in a company’s ability to remain agile and adapt its strategy based on market conditions.
By partnering with a 3PL logistics provider, you can tap into their technology to manage each facet of your supply chain and enhance visibility. From a warehouse management system (WMS) to inventory management software, look for a 3PL logistics company that actively invests in technology to ensure you’re optimizing your supply chain, maintaining a competitive presence, and creating the best customer experience possible. What’s more, these systems should be able to integrate with your current technology stack to keep processes cohesive and create a single point of visibility across operations.
Reduce the Number of Hands in the Pot
Sometimes the supply chain becomes messy and chaotic because there are too many cooks in the kitchen. Businesses focused on supply chain optimization should consider ways to consolidate services or partnerships. This can effectively conserve time and money as you’re tempering the number of systems you need to integrate with, reducing handoffs, and keeping points of contact to a minimum – which can prove to be valuable when an issue crops up that needs to be handled swiftly.
3PL logistics providers can be highly advantageous in this regard. Not only do 3PLs offer a wide spectrum of solutions, but for each service offered there’s typically a lot of added value that goes along with it. For instance, a 3PL logistics provider that specializes in warehousing may have value-added services like inventory control or kitting baked into their solutions. There are 3PL logistics partners that can offer multiple services spanning everything from order fulfillment to transportation, allowing you to consolidate a huge portion of your supply chain.
3PL Logistics for Supply Chain Optimization
Supply chain management is a highly complex and often daunting task, especially given the demands of today’s market. Smart Warehousing is a 3PL logistics partner offering a wide range of logistics solutions for your business, including order fulfillment, inventory management, and transportation services. We serve as an extension of your team, focused on increasing efficiency, reducing costs, and streamlining the supply chain.
Don’t just approach logistics the right way. Approach it the Smart way. Contact our team today to learn more.