Blog

How an Apparel 3PL Can Save Your Business Money

In the apparel industry, companies often run themselves into the red because of supply chain issues. Unfortunately, many otherwise healthy businesses must shutter their doors, but if you use an apparel third-party logistics provider, or 3PL, you can save money and improve your company's future prospects.

Reduce Labor Costs


Hiring staff for the entire supply chain can easily drain your corporate bank account. Between salaries, benefits, training, and oversight, employees take a significant bite out of your profits. A 3PL can reduce labor costs by handling the logistics for you. From managing the warehouse to overseeing transportation and inventory, 3PLs give your bank account a break and allow you to funnel cash into revenue-generating projects.

Additionally, you won't have to expend as much time on supply chain issues. Your 3PL partner can handle shipment delays, inventory control, packaging, accounting, and more. While your 3PL takes over the supply chain, you can focus on growing your apparel business organically. It's a matter of opportunity cost. You'll pay a 3PL partner to handle your apparel supply chain, but you get the opportunity to generate more revenue.

Access to Resources

An established apparel 3PL company has built a network of contacts and resources to which you might not have access. From transportation carriers to fulfillment warehouses, a 3PL can find the most cost-efficient solution for your needs. You don't have to conduct copious research to find the resources you need.

Because 3PLs work with many customers, they often get volume discounts with their supply chain partners. The 3PL passes those savings on to your business, which can translate into improved cash flow. It can take years to build a resource network of your own, so consider working with a 3PL that already has one in place.

Scalability

No matter the size of your business, it could always grow. In fact, you probably hope it does. When you buy or rent your own warehouse and manage every other aspect of the supply chain process, unexpected growth can put you in a bind. If you work with a 3PL, however, your partner can easily scale your inventory and other logistics needs to meet growing demand.

The apparel market can prove fickle. If you don't have enough items in inventory, you lose sales — and you might also lose customers. Today's consumers want instant gratification when they shop, especially if they're looking for an outfit for a special occasion. Scalability is essential for businesses that want to keep customers happy and continue building revenue.

Furthermore, if you decide to expand into a new market, your 3PL can help you do so seamlessly. With warehouses, transportation carriers, and other resources throughout the United States, a 3PL can help you scale your business faster and more affordably.

If you've resisted working with a 3PL, request a consultation to learn how The Apparel Logistics Group can help you save money. We've worked with many businesses like yours, and we focus on expense management as well as quality control so that our customers never have to worry about supply chain issues.

Posted: 12/21/2016 3:39:15 PM by Global Administrator | with 0 comments


Share this:Add to Delicious Add to Digg Add to StumbleUpon Add to Twitter Add to Reddit Add to Facebook
Trackback URL: http://apparellogisticsgroup.com/trackback/7ad4d5a1-9d85-4146-b37a-b69572104983/How-an-Apparel-3PL-Can-Save-Your-Business-Money.aspx

Comments
Blog post currently doesn't have any comments.
Leave comment Subscribe



 Security code