If you are a small business owner who began operations not so long ago, you must have pretty good idea about the difficulties an entrepreneur must face when establishing themselves in a market place that extremely competitive and highly volatile. Customers demand products and services of the best quality at the lowest price and rival companies who constantly attempt to dominate the market by coming up with the best offering together make life very difficult for small enterprises. When struggling to meet such core requirements, it is almost impossible to commit to the peripheral functions such as supply chain management and logistics. These functions will require the input of mammoth amounts of money for establishment and management and is one of the leading reasons behind the perishing of most start-ups in Australia. The solution to this conundrum is outsourcing, a simple yet elegant process that takes away the responsibilities of non-core activities and makes life easier for enterprises. Let us look at a few of these advantages.
Adjustable for the requirement
As your small business grows in size, it’s logistics requirements too will increase. The more products you manufacture, the more trucks you will need to transport them, more warehouse space you’ll need to store then and more personnel you’ll need to handle them. If you were to do these all by yourself, the weight will be immense and it might even lead to breakdown of operations if things go wrong. A 3PL company will take care of everything from providing extra trucks to performing smash repairs on them when required. Demand for certain products can be seasonal and you will not need a fixed input all year long. If you were to own your own fleet of trucks, you will have to perform spray painting Brisbane and compensate the permanent drivers all year long, even during the seasons where there is hardly any demand. Outsourcing will save you the trouble and help you avoid such expenses.
A comprehensive network
A small enterprise will have to spend a lot of time getting their logistics function in order. Given the complexity of the area and the difficulty experienced by relatively smaller companies in getting profitable rates, this task will prove to be a daunting one which will distract the managers from staying focused on the core competencies of the trade. A 3PL company on the other hand will have access to a number of reliable and high-performance contacts in the industry who will carry out the process in a faster and more efficient manner. Furthermore, because of the size of the 3PL company and the large number clients handled by them, discounted rates can be obtained so that enterprise can save loads on transportation, warehousing and most importantly, shipping.