3PL As A Solution For A Problem You Didn’t Know You Had

Flexibility and agility are critical in today’s business environment. This is particularly true for retailers looking to get ahead of the competition. More and more, this involves shipping goods of different shapes, sizes, weights, and packaging. Likewise, there’s the issue of reverse logistics that they also need to consider. As such, e-commerce retailers and other businesses are increasingly relying on third-party logistics providers to fulfill their customer orders. Most 3PL providers can help their customers detect and solve many of their supply chain management issues and boost their overall core competencies. Tarsus Distribution's 3PL services are a perfect example of a great 3PL partner. 

A Tarsus client, a tech business launched in 2016, has since become a significant player in a highly specialised division of the industry. Because of this success, it is now seeking scalability, without increasing headcount. The company has a retail store and a small inventory store which would need to accommodate the growth of the business as it scales. This would require a significant capital outlay for items like racking, materials handling equipment (MHE), and full maintenance leases (FMLs) on forklifts. Another challenge is that the business does not have a warehouse management system (WMS), inventory management skills, or a system in place to automate these requirements. Meanwhile, shrinkage and armed robbery are just two possibilities that pose huge risks to the business.

Covered In This Article:

The Need for Outsourced Services

Asking the Right Questions to Identify the Right 3PL Partner

The Benefits of Accurate Information and the Right Partnership

Quality and Reliable 3PL Services are Critical to Both Traditional and E-Commerce Enterprises

The Need For Outsourced Services

Businesses that carry, store, and ship goods, whether it is large enterprises or small businesses, have to store, track and deliver their goods as a necessary part of their business. The infrastructure and the capital outlay it would require to have all these functions in-house is simply out of reach of most medium to small enterprises, who then have to outsource these functions to Third Party Logistics (3PL) companies. Tarsus Distribution identified this market need and has been providing 3PL services to a range of clients since 2016, with a very high rate of success.

Asking The Right Questions To Identify The Right 3PL Partner

If your business is growing and you're struggling to find the right partner to outsource your 3PL functions to, when looking for a new partnership you need to ask yourself the following questions:

• What percentage of the market does your business own, and how much can that be grown?
• How does the 3PL service provider integrate its systems with yours?
• Which portions of your business should be moved to Tarsus Distribution’s 3PL division?
• Does your business need a new ERP system?
• Can the service provider manage inventory in the backroom through an ERP system that integrates with yours?
• As your business scales can departments like shipping scale without adding more headcount?
• How does your business manage forecasting when it comes to procurement?
• Which company do you use as your courier?
• Are there massive risks on the road freight?
• What are you concerned about with your current security setup?
• How will stock be brought in and stored to accommodate business growth?
• How will you forecast what to bring in, so you have a just-in-time solution that does not mess with your cash flow?
• How do you ensure that the right goods are delivered in good order to the right client?
• Should you be thinking of adding an insurance option for valuable goods?
• How do you manage stocktaking and is it effective?

The Benefits Of Accurate Information & The Right Partnership

This is just a sample of the myriad of questions Tarsus 3PL services delve into when in consultation with your business, the aim being to help you solve problems you did not even know you had. With a better understanding of what an outsourced 3PL service provider should do for your business, you have the information you need to drive your business onwards and upwards. Once you engage with Tarsus Distribution, you will be able to demand a level of scalability and customisation that you could not have previously dreamed of.

Tarsus' 3PL offering can package warehousing, shipping, and inventory management all for one price, and it would most likely be less expensive than doing it all in-house. Importantly, we bill our clients according to their needs. If these are seasonal, you will pay more in the good months, and less when business is slower, so there is no massive bill during ‘lean months’.

People are always scared of having the outsourcing conversation initially, but when they start to listen to the benefits, particularly in terms of scalability and forecasting, it all starts to make business and financial sense.

Quality & Reliable 3PL Services Are Critical To Both Traditional & E-Commerce Enterprises

The wave of e-commerce has affected businesses in all industries, and for many, all client interactions now happen online. This trend was sped up disproportionately by the global pandemic in the past two years. Even in cases where customers still interact with a salesperson in a physical, brick and mortar shop, the needs remain the same: There has to be adequate stock of the products your customers want, you have to know where to find that stock and make sure it is secure and well organised. You still have to get the product to your client, with 3PL services being the only way e-commerce businesses ensure delivery of the goods. If your business is large, growing, or if you deal in large products like machinery, you still need a secure warehouse where you can safely store your inventory. Either way, even enterprises that interact directly with clients on a physical shop floor are increasingly moving more and more of their business interactions online.

Your 3PL partner needs to understand where you are on this shift in the sale and distribution of goods and help you plan for the future and make the transition to scale smoother. In the 3PL world, digitisation provides opportunities to reduce costs and efficiently expand with competitive new services. As your business grows and changes, your 3PL provider can take on a more significant role by adding additional services or by expanding operations as a whole. Tarsus' 3PL division has the experience, resources, and capacity to handle your 3PL needs however they may change as your business grows and evolves.