Can a Small Business or Startup Use a 3PL?

When it comes to using a public warehouse, no business is too small or too large to use its services. In fact, third party logistics providers (3PLs) are perhaps the most advantageous for businesses without established credit and small to mid-sized businesses.

Public Warehousing Services Provide Small Businesses Affordability

The main reason startups or small businesses don’t consider using a 3PL for their warehousing, distribution and other logistics services is because they erroneously think they can’t afford it. But in actuality, public warehousing frees up capital because businesses don’t have to make a major investment in building, equipping and staffing the infrastructure necessary to keep its goods moving through the supply chain.

A 3PL enables businesses to save on overhead costs because they don’t need to maintain a warehouse and distribution facility. In addition, because the cost of public warehousing space is divided among other businesses storing in the facility, start-up companies and small businesses realize significant cost savings.

If your company’s cash flow is limited, keep in mind that many public warehouses offer services on a monthly payment basis, as well as pay-for-use plans where businesses only pay for the services they use in a given month. One of the advantages of public warehousing is that you can scale your needs as your business dictates, using as little or as much as the services your business requires and your budget can afford.

If logistics are not your core business, then it makes financial sense to outsource these services and save your cash flow for things that will grow your core services. As your business grows, you can evaluate whether it’s more cost-effective to bring your warehousing, distribution and logistics in-house.

New and Small Businesses Capitalize on 3PL Services

Small businesses typically shy away from 3PL services because they think their size will prevent them from capitalizing on outsourced warehousing and distribution services. Startups, on the other hand, think their lack of established credit prevents them from entering a partnership with a public warehouse and distribution facility. But in reality, most public warehouses welcome startups and small businesses and their 3PL services help them rein in costs.

With a 3PL, brand new businesses and small businesses of any size have access to large-scale resources that they couldn’t obtain or afford on their own. Here are three key ways smaller businesses can capitalize on 3PL services:

- *Access to automated, advanced technology:* Having to frequently update logistics systems and software is costly for a startup business or small business. Rather than spend money on a non-core business expense, they can capitalize on the core logistics services offered by public warehouses. For example, Brendamour has state-of-the-art [warehouse management systems](https://brendamour.com/computerized-office/) and [automated equipment](https://brendamour.com/order-fulfillment/) that are updated as new technology emerges. This allows new or small businesses to take advantage of automated and real-time inventory control, bar coded warehousing, distribution with real-time tracking and reporting, and other services that allow them to compete with bigger businesses at a price they can afford.
- *Extensive logistics services: *Often times, smaller businesses are limited to what they can offer their customers because of restrictions in what they can afford. But with a 3PL, startups and small businesses can expand their [offerings](https://brendamour.com/services/) and capitalize on the benefits of meeting special processing requests, such as custom packing, bundling, labeling, inspection, phased shipments and more.
- *Faster customer fulfillment:* Because orders are handled in one location, with automation ensuring a fast and accurate process, businesses can capitalize on providing top-notch customer service that leads to repeat business and referrals. With a 3PL, merchandise gets to the buyer in a faster and more cost-effective manner. For instance, Brendamour Warehousing and Distribution has many distribution options at our fingertips, from truck and rail to air and ocean freight, so we can find the best method and route to transport your goods to their destinations. Plus, 3PLs give start-up companies and small businesses added customer service support to assist their customers.

Focus on Your Business

With a 3PL like Brendamour Warehousing, Distribution & Services, start-up businesses and small companies can focus solely on growing their business. Our public warehouses have helped many new and established businesses of different sizes and revenues become successful. In fact, every day, Brendamour plays a key role in ensuring the business success of its clients through the warehousing, shipping and other logistics services we provide.

Get in touch with Brendamour Warehousing to see how we can complement your startup or small business. Your business may be small or brand new, but at Brendamour, all that matters is helping you make your business succeed.