Positioning Your 3PL for Profitability In 2017
5 Keys to Maintaining Success in the Rapidly Changing 3PL Warehousing World
The 3PL Warehousing and Logistics industry has had its share of changes and challenges. However, 2017 is looking like it will be a particularly momentous year. Bringing with it a more competitive landscape and a controversial incoming presidential administration, the year ahead is looking to have a large impact on the way 3PL warehouses conduct business.
However, with challenges often come opportunities for new profit and growth. The ability to take advantage of industry change can be a make-or-break point for many 3PLs or private warehouses looking to pivot in today’s fast-growing and ever-changing warehousing market.
As we enter 2017, it will be extremely important to understand how to navigate change and discover how your 3PL warehouse can maintain – or even increase – success in the year to come. Our recommendations to help drive profit and growth include the following:
1 – Analyze Warehouse Location and Space – Warehouse size and location can play a factor in whether you can respond to a new opportunity. Will your facility’s location help or hinder your ability to win new import or export business? Is it large enough to accommodate new customers? 3PL warehouses who plan ahead will be ready for any opportunities that arise.
2 – Review Warehouse Configuration – As many 3PLs evaluate the early landscape of 2017, they may not be ready purchase or rent new facilities. However, you could potentially find ways to expand your existing warehouse by conducting an in-depth analysis of your operations. The results could help decrease your wasted space through smarter usage and increased efficiencies. This can result in more capacity, more customers, and greater profitability.
3 – Scrutinize Fulfillment Standards – In the new B2C fulfillment world, the ability to manage a customer’s brand presentation properly will determine whether you retain current customers and drive new B2C business. Your B2C customers’ brand image is everything to them. Manage it well and you’ll maintain their business for years.
4 – Assess Technological Sophistication – The e-Commerce fulfillment business is surging. Winning new e-Commerce fulfillment customers, however, could depend on your Warehouse Management System’s ability to easily interface with a variety of shopping carts, shipping providers and other complex integrations. For many e-Commerce prospects, asking about a 3PL’s technological sophistication will be one of the first questions asked when looking for a new warehouse to call home. 3PLs who want to expand should be ready with a great answer.
5 – Maintain an Opportunistic Mindset – At 3PL Central, we believe there is plenty of business for 3PLs who remain properly prepared. Indeed, the entrance of huge competitors like Amazon only underscores how attractive the third-party logistics industry remains. 3PLs who embrace and respond to these challenges will certainly reap the benefits throughout 2017 and the years ahead.
For a complete guide on how you can strategize, plan, and profit from these 5 challenges facing 3PL warehouses in 2017, download the 3PL Central State of the Industry e-book.
Authored by 3PL Warehousing industry veterans John Watkins and Rich Moline, this e-Book was specifically written to help 3PLs navigate the year ahead and learn how to profit. Request your FREE copy today.