4 Ways a 3PL Can Help With Outsourcing Inventory Management

According to Investopedia, inventory management is the process of ordering, storing, using, and selling a company’s raw materials, components, and finished products. Inventory management requires significant resources in order to run it efficiently. Inventory is one of the most valuable components of a business; therefore, mismanaging it can be detrimental to the organization’s success. Proficient inventory management streamlines the process of reducing overages and stockouts. If your company is losing time and money due to inefficiencies or staff overload, it is probably time to outsource inventory management to a third party. There are several ways a 3PL can help with outsourcing inventory management.

Aspects of Inventory Management

3PL outsourcing inventory management

Why would I outsource inventory management?

  • You need to improve efficiency.
  • You need more time to focus on core competencies.
  • You no longer have the warehouse space to contain adequate inventory to scale.
  • You need to improve margins on shipping and staffing.

Ways a 3PL Can Help With Inventory Management

Provide Flexible Storage

Many growing e-commerce businesses work out of their basements, garages, and attics when they launch. Eventually, these spaces are inadequate to ensure quick, organized, and streamlined fulfillment. If you’re fulfilling in-house, you may be experiencing these types of growing pains. Alternatively, if you’ve rented a warehouse, it might be an expensive overhead cost. The jumbled mess of packaging, bubble wrap, and returns can become someone else’s problem. Partnering with a 3PL can give you flexible warehousing space depending on fluctuations in sales and seasonal needs. You can scale your warehousing resources quickly.

Faster and Cheaper Order Fulfillment

A 3PL provides expert order fulfillment services. Your business can benefit from bulk discounts by accessing their expertise and broad national network of facilities. Partnering with a 3PL allows your business to leverage economies of scale and negotiate lower shipping and delivery charges. Additionally, your company will likely see an expedited order delivery timeframe. A 3PL fulfillment team can receive an order, package it, and get it out for delivery in a single day. Provided your 3PL has multi-site distribution, you can offer 2-day delivery almost anywhere in the US. Fast delivery times make your company more competitive in the cut-throat e-commerce landscape. Outsourcing this aspect of inventory management is a life-saver.

Advanced Inventory Management Software

Because inventory management and transparency are critical to running a successful 3PL, most use highly advanced technology. This is another cost savings because you do not have to spend money to purchase software or train staff to use it. Your business will be able to use top-of-the-line technology and receive training on how to utilize it to grow your business. The detailed reporting available includes; stock levels, automated inventory tasks, forecasting, and returns management. Here are some benefits of using an automated inventory management system, such as the one Falcon Fulfillment uses.

Reduce Inventory and Fulfillment Staff

As your business grows, you will naturally require more staff in order to fulfill orders. If you have been running a business for more than five minutes, you understand that people are a company’s most valuable and expensive asset. The more you can reduce your inventory and fulfillment staffing risk, the more you can focus on core competencies. When you partner with a 3PL, the stress of whether or not your warehouse staff will show up and get your orders out the door is eliminated. Furthermore, you do not have to bear the expense and risk of injuries from fulfillment staff. When you work with a premiere 3PL like Falcon Fulfillment, you have even greater assurance that your inventory management teams are well-cared for.

Beginner’s Guide to Third-Party Logistics (3PL)

The world of e-commerce is always changing, therefore understanding the roll of Third-Party Logistics is integral to keeping up. In light of this our beginner’s guide to third-party logistics (3PL) will delve into the essential aspects, offering insights into fulfillment services, warehousing, and much more.

Read More…

While we have only discussed four ways a 3PL can help with outsourcing inventory management, there are many more. A 3PL can save you money from reducing shipping costs to staffing. The most valuable resource any entrepreneur has is time. Outsourcing your inventory management to a 3PL gives you back a little more of this precious commodity. With more time, you can focus on what your business does best and leave the inventory and fulfillment piece to the experts!

Are you interested in learning more about how Falcon’s proprietary inventory management software could help your business? Get in touch today.

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