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The competition thrown by the e-commerce giants is pressurizing the retailers to offer enhanced services at reduced prices if they want to survive it. FMCG retailers are no different. This competition gets even more intensified for small to medium-sized FMCG businesses as they have to compete with businesses that have both the resources and the infrastructure to cater to the demands. But then, at the same time, the rise of 3PL warehouse companies i.e. third-party warehouse companies has altered the game giving SMBs a platform to develop and thrive. In this post, we will discuss why FMCG retailers should opt for third-party warehouse management. So, let’s get started.
FMCG is a highly price-sensitive sector. What most FMCG consumers want from a brand is value for money? When we say value for money, it means something that is wh the money spent on it. The consumers want more for less, which you can never deliver with an inefficient supply chain. If you try to make your supply chain efficient, it takes a lot of time, money, effort, and attention that you could have devoted to your core business.
Moreover, scaling up or down could even be a challenge. On the contrary, a 3PL logistics warehouse company can help you quickly scale up and venture from the local area into international markets. If your goal is customer acquisition, a third-party shipping company can be extremely beneficial. Through the unremitting stream of supply, they become adequately agile to meet demand.
Lesser material handling, lesser damage of products, Low storage costs, etc. are some of the most common benefits of Cross-docking. If you dig deeper, you will find that it not only minimizes the costs elated with labor, storage, and transportation but also lowers the inventory and delivery lead times.
Though it demands time commitment from you, it is traders’ top choice. It gives you a high payoff if you give it what it demands. However, implementing across-docking is not every FMCG company’s cup of tea due to the lack of the right resources and proper systems. But then, you can always take help from 3PL warehouse companies and fulfill the purpose.
It’s not that you can’t do it all yourself. Make calls, perform calculations, search for quotes and do all such stuff yourself. However, wouldn’t it be hectic and harassing when you already have a very busy day? It would be! Right?
Perhaps, this is the reason why most FMCG retailers turn towards third-party shipping companies to fulfill their warehousing needs. Though a few businesses still try to do it by themselves, even they move to a 3PL logistics warehouse company once they realize that there is no point wasting time on something they don’t specialize in. They can rather work more intensely towards their business bottom line. The third-party warehouse management lets you dedicate your precious time to your core business.
Though third-party warehouse management has its benefits, it has a downside as well. Finding a trustworthy FMCG Logistics provider is not as easy as it may seem from the top. You need to do your homework well that includes a lot of research, filtering out the right 3PL partner, and so on. While trust is the key, trusting anyone and everyone is not easy.
You will have your reasons for collaborating with an FMCG logistics company. It could be expanding the customer base, creating a positive consumer experience, or venturing into new markets. Whatever may be their reason or whatever may be the size of their business, external support and expertise can help the FMCG companies effectively run their supply chain and stay ahead of the curve.
That’s where the 3PL logistics warehouse company comes into play. By offering a high-level infrastructure at affordable prices, these companies help the FMCG retailers to have world-class warehousing solutions reasonably that otherwise would have cost them a fortune.
If you have found a reputed or one of the largest 3PL companies, nothing can be better than that. Of course, it gives you a competitive advantage. However, it is kind of difficult to find one. It’s always good to read reviews and testimonials by their current and ex-clients.
16 February 2022
