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The Benefits of 3PL for Small Businesses

Posted on 21. Feb, 2014 by in 3pl

In order to compete in today’s market, many small businesses begin looking for ways to increase their sales, add new product lines, and expand their business into new markets. There are many benefits of 3PL for small business that can help them to reach these goals.

One of the benefits is that a contract with a 3PL immediately provides access to large-scale resources that were not readily available to the small business on its own. Warehouses, information systems, and logistics staff are not resources that can be developed overnight, and frequently the cost would make them inaccessible to a small business. Through 3PL providers, these become options that can boost the small business to the next level of competition in the market.

It may be beneficial to a small business to utilize a particular service through a 3PL provider and treat the cost as a business expense. This can be a viable alternative for small businesses that may have difficulty securing a business loan in order to finance the development of that service on their own.

Another of the benefits of 3PL for small business is that these providers have already developed relationships with firms involved in such areas as transportation, for example, and may be able to negotiate much better prices for a shipping fleet than the small business would be able to procure. A 3PL provider may also be able to use a shipping vehicle for more than one small business if the loads of each are small enough to share the space, effectively halving the expense, at the least.

As the economy improves and business increases, many are seeing the benefits of 3PL for small business in order to allow quick expansion without the growing pains that typically accompany such a surge forward. The partnership with the 3PL can also provide security in case the surge is temporary and cutbacks need to be made in the future. For example, rather than hiring, training, and then firing employees, the service through 3PL can be maintained for as long as it is needed without the extra investment in personnel. 3PL providers can help small businesses to reach their goals without the risks usually associated with expansion.

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