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During economic and supply chain uncertainty, ensuring you have a true partnership with your 3PL provider will not just help you drive operational efficiencies, but can help you weather the storm.
Even in the best of times, supply chains face challenges. The complexity of managing such a large ecosystem requires constant review to drive as much optimization as possible.
And while reducing costs often plays a large role in decision making during economic uncertainty, it’s also a good time to think about how you stay resilient for the long-term. The stability, expertise and efficiencies that trusted third-party logistics (3PL) providers bring to the equation can actually minimize additional investments while increasing the flexibility brands are always looking for.
So if you’re starting to think about how to tighten up your warehousing investments, here are three reasons why it’s a great time to find the right 3PL to partner with:
Labor costs and real estate expenses are typically among the largest line items on a business's financial statement. Outsourcing your warehousing allows some of these costs to be transferred to a third party that is motivated to deliver maximum value to your business. Employees and facilities, and the additional work that can come with them such as recruiting, employee retention, building maintenance, and insurance, are no longer your budget line item to manage. NTT Data's 2024 Third-Party Logistics study found that 80% of shippers see 3PLs as helping reduce overall logistics costs. Paying for outsourced labor and facilities is often less expensive than keeping these functions in-house.
One of the most compelling arguments for outsourcing warehousing is to optimize your resources and trust external experts in areas that aren’t your core competencies. You’ll get access to specialized skills throughout your engagement - whether you need short-term storage or longer-term contract logistics. The results you’re looking for will mean better performance at a lower cost.
The volume of goods coming in to be stored and then sold through brick & mortar or ecommerce can vary by season, local events, weather, style trends, and other factors. Irregular demand patterns can make it difficult to forecast and it’s when market shifts happen, agility really matters. Outsourcing provides the flexibility to scale up or down based on your immediate needs. Brands can adapt to changing market conditions without the challenges associated with finding talent, onboarding new hires, or investing in long-term leases.
So whether you’re looking to save costs, improve performance, reduce risk, expand to new markets, or a combination of these goals, outsourcing your warehousing to a team of trusted experts can help you achieve them. With facilities and resources throughout the country, flexible service agreements, and quick setup and onboarding, Iron Mountain is an ideal agile 3PL partner with a legacy of trust.
Learn more about us or schedule a tour of any of our logistics facilities by visiting: https://www.ironmountain.com/contact/warehousing-and-logistics.
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