By Cindy Carino
Small and medium-sized enterprises (SMEs) are an arising trend in the retail industry. It has the ability to provide customers the ease of access and the power of personalization through the use of different tools – social media, product delivery and payment convenience, among others.
Behind this fast-pacing and favourable service is logistics, an essential component that plays a huge role in keeping the business going. It involves strategizing how SMEs can minimize their costs while maximizing profits – without, of course, putting into risk the level of service delivered.
Hiring a number of staff to handle an enterprise’s logistics can be expensive, and is not ideal for SMEs. A cost-effective way you can do is through third party solutions. The following points shall tell you why and how:
3PLs have access to and are more familiar with modern logistics equipment and tools
One of the challenges that SMEs have to deal with is the struggle of having skilled human resources that are competitive enough to help them in the industry.
Many competitive logistics practitioners today would go the long way of going for high-paying large enterprises, as they are already established and their careers are already stable. This gives less room for small and medium-sized enterprises to be a top option for the competitive ones.
Additionally, not everyone in SMEs are commonly familiar with modern logistics equipment and tools. As a starting enterprise, there is only a limited access to these tools and equipment, leaving them with the problem of finding out how the logistics system would operate. Third party logistics (3PL) is the solution.
3PL is a medium of outsourcing for logistics, and this can greatly help SMEs in a way that they get to have resources that are much familiar with how the system goes. Through having 3PLs, it is a lot easier for SMEs to sustain their daily operation without worrying how to manipulate it.
3PLs can offer quality services at lower costs
Aside from having a hard time encouraging competitive logistic practitioners to be a part of an SME, setting up one’s own logistics team can cost more money. This does not only involve every logistics employee’s pay; it also involves costs for the fleet required, vehicle gasoline, logistics equipment (e.g. software and other hardware) and contingency funds, among others.
SMEs do not earn as much as large and established enterprises do – meaning, they could not afford that much for setting up their own logistics team. Practically speaking, it would be much ideal for SMEs to outsource resources than to have one’s own.
3PLs can also offer quality services at much lower costs. All it takes is careful selection of a third party logistics partner that can accommodate the business. Thereafter, the 3PL does all the work – lessening SME’s costs in many ways, and ensuring that packages and products are all delivered on time.
3PLs have more resources and can make SMEs more competitive
More than the accessibility and cost-efficiency, 3PLs is a complete package as it consists of all the resources needed – from the fleet, software and hardware, up to the skilled practitioners who operate the system. All that is left to do is to instruct them how you wish your business to be done.
With 3PLS, SMEs can also become competitive as they would have direct access to logistics knowledge and skills that large enterprises have. This makes it easier for them to achieve their business goals, and eventually become a growing enterprise with increased sales and profit.
3PLs are ideal for any kind of SME
Dedicated 3PLs are committed to providing quality logistics services, and a crucial part of their business is selecting goal-driven partners that are geared towards creating mutually beneficial relationships. For example, choosing their transportation system partner has bearing on how they would have SME’s packages delivered.
3PLs with outstanding transportation systems and services can be ideal for any kind of small and medium-sized enterprises: food, heavy equipment, letters, wet or dry products, fragile materials, etc. With the help of competitive transportation systems, transporting packages become easier for 3PLs and SMEs.
Transportify is a company that provides exemplary transportation services for third party logistics, SMEs, and other companies that require specific delivery requirements. They can provide same day delivery and services that are especially helpful for enterprises that deliver perishable goods. Kats Happy Food, a blog that focuses on the food industry, even highlighted how Transportify is an “awesome ingredient” for baking. This just proves how SMEs can be successful and growing businesses with 3PLS’ transportation services.
The success of every SME lies within the products they produce, and how these can reach their customer in a timely manner with the utmost convenience. Third party logistics and transportation systems like Transportify helps small and medium-sized enterprises with their delivery needs, offering an ideal and—without a doubt—cost-effective solution for product transportation.
Article was shared in kind by Cindy Carino, Digital Marketing, Social Media, SEO at Transportify Philippines
Meet Transportify’s Co-Country Director / Head of Operations, Paulo Bengson at Seamless Philippines 2017, as we chart the course for logistics and e-commerce fulfillment for the Philippines, 27th to 28th September at the SMX Convention Centre. CLICK HERE to find out more, do not delay as seats are limited.