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Logistics Continuity Means Sustained Growth for Your Business | XL Logistics Blog

How 3PL Can Help Turn A Small Business Into A Larger One

Posted on 30. Sep, 2013 by in 3pl

For many small businesses, choosing to use third party logistics (3PLs) or not is one of the daunting decisions to make when focusing on small business growth. While a small business may have little to worry about when it comes to organizing small transportation issues, warehousing and order-t-cash management roles, it is not often a simple and cost-effective approach to go it alone. 3PLs are efficient and less costly when it comes to handling select issues related to logistics processes.

If you have a small or middle-sized business that is ready and yearning to swim with larger firms, you should team up with leading 3PLs to benefit from the sea of business capacities offered by 3PL firms. Just because you have a small firm does not mean you are bound to remain a small entity.

Like larger firms, small business entities can expand their sales, enlarge their product portfolio, and grow their market presence. Becoming big is all about reaching out to the market-which is what 3PLs do to help small firms to break through the tough terrain for small business growth.

Small business units that want to expand their market share often turn to 3PLs providers to enable them compete with the big fish in the market. This is not often simple when you decide to go it alone. Small businesses that outsource logistics functions has unlimited access to large-scale resources that they cannot easily access on their own. Gaining access to large resource capacities is the reason many small businesses remain small for a protracted period.

Obtaining warehouses, technical staff, and necessary systems mean putting in many resources, possibly more than what a small business may afford. However, the fortunate thing is that small businesses can leverage 3PLs providers’ capacity to deliver cost-effective service. Small business units can use these services and treat them as expenses.

Supply chain operations are essential to the growth of a business, but this is always an expensive thing to implement and requires a significant upfront capital investment. By finding a third-party logistics provider and treating it as an ordinary business expense rather than a capital cost is the most feasible option for small businesses.

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