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West Coast and California Logistics Blog

Why Utilizing a 3PL is Cost Effective

Thu, Sep 29, 2016 @ 02:36 PM / by Brad Dixon

In today’s growing e-commerce world, online businesses are in a position to optimize their operations that will fuel growth, because they are able to focus on a single product-to-consumer distribution channel.  Many of the technical aspects of e-commerce business such as social marketing, website design and content management continue to be executed by in-house staff. These functions are crucial and have to be in house as they are the foundation of growing startups and online business. But when it comes to the operational and logistics aspect of the business, adding on an outside partner that has the knowledge and expertise to optimize your supply chain could provide great value.cost_image.jpg

Online vendors are increasingly relying on outside service providers to fulfill such crucial business function as shipping and order fulfillment. Outsourcing the logistics function avoids the cost of investing in brick and mortar, and can be easily and quickly achieved with the right partner.

Below are the three main factors to consider when deciding on bringing a 3PL partner to get your direct-to-consumer business off the ground.

  • Cost of ownership. Will you be able to own and run a warehouse and distributing your goods? Owning and running a business is costly, but owning and running a business and a warehouse is can be costlier. 
  • Startup cost. Will you be able to afford the upfront cost of establishing your distribution channel? The cost of buying equipment, hiring new laborers, and renting warehouse space is a business in itself, mainly one of a 3PL.
  • Opportunity cost. Could your time be spent expanding your business in other ways? Leave it to the logistics and supply chain experts to manage your distribution so you can focus on expanding your business and sales.

These are the three main costs to consider when deciding on whether or not you should bring in a logistics partner. The infrastructure that 3PL’s already have in place can meet the demand and the volume of your growing business. Contact Weber Logistics today to learn more about the solutions we offer.

Brad Dixon
DC Manager, Fontana II
bdixon@weberlogistics.com

 

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Topics: 3PL Outsourcing, eCommerce Fulfillment, Direct to Consumer

Written by Brad Dixon

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