Using 3PL services can offer you significant savings in ways that may not be completely obvious.  Here’s an example:

Let’s say that we designed a packaging solution for your product, and we provide you with all the packaging materials, sent directly to your manufacturing facility.  You receive a truckload of wood parts cut to spec, another with corrugate or foam, etc. Then your team packages up your products at your facility.  We work with customers who prefer to operate this way.

Now imagine the same packaging, but instead of sending all the parts separately, we put it together into a “kit” for each product that needs to be packaged.  That saves your packaging team the time it takes to pull together each of the parts.  All they have to do is package each product up using the kit.  Many of our customers love kitting.

When a company outsources 3PL functions to a third-party logistics firm, they can realize a significant reduction in their capital investment, depending on the services they employ.  For example, if your 3PL takes care of the warehousing, then your company no longer needs to worry about managing and maintaining a warehouse for that purpose, and you aren’t investing in the extra warehousing space.  You’ve saved on not only the warehouse itself, but also on all the work hours, employee expenses, and other overhead expenses required to take care of that warehouse.

Clients of third-party logistics firms nearly always save money overall.  In the warehousing example, not only will a 3PL manage your warehouse and inventory more efficiently, but the amount of capital needed to hire the third-party firm is generally less than would otherwise be needed for warehousing operations.  Not only can a 3PL firm strategize to decrease a company’s overall delivery costs, but they can also help improve management to reduce inventory costs as well.

It’s much easier to scale production to meet supply demands with the assistance of a 3PL supplier, especially when it’s part of a total package solution.  They can help you quickly respond to increases in demand or expansion, and they can also manage your inventory appropriately when things slow down a bit.  The best part is that they can scale without any added risk or legwork on your part.

Highly experienced industrial packaging providers who also provide 3PL services have a tremendous amount of expertise and knowledge about the services they provide.  They also have industry connections in logistics, warehousing, VMI, repackaging, etc., so they can conduct operations much more efficiently and cost-effectively than most manufacturers are able.

At Conner, we know what the best practices are and we’re able to implement them in your integrated packaging solution.

Business is complex, and it is difficult (or impossible) for a company to have expertise in every single sector or division. When you hire a company like Conner to manage your 3PL needs, in addition to your packaging needs, you are hiring experts. This kind of partnership can free manufacturers to focus time, energy, and resources on areas of core competency. Instead of diverting capital, personnel, and other assets to managing warehousing, assembly, repackaging, supply chain inventory, and logistics, those resources can be used to focus on your company’s core business.