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Why You Need a 3PL that Utilizes Lean Production Principles

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The day-to-day running of any business serves up a wide selection of tasks to be completed. From hiring to firing and all the critical things in between, companies can spend a long time finding the best way to do things which can erode profit, waste time, and threaten customer loyalty. Just when you think you have found your groove, tech innovations are discovered, or new legislation is passed, and the process seems to begin again.


What if you were able to save all those months and years of the learning curve and go straight to high productivity and profit? The answer is simpler than you may believe. Partnering with a 3PL who uses lean logistics is a smart way to  increase efficiencies, profits, and time capital easily.


Nearly all skilled 3PLs will use more than a few elements of lean production to reduce redundant touchpoints and uneconomical processes. These lean foundations will lead your company to superior efficiency and give your profits a much-deserved boost. Here are a few ways your 3PL incorporates lean production to improve your business:


Inventory Management

It’s critical to every company and is also (usually) its greatest hassle. Inventory management is key to keeping profits high and waste low, and with new, industry-specific requirements popping up each year, companies are outsourcing to 3PL’s to manage inventory and fulfillment comprehensively. They use the latest technology and industry-specific best practices, as well tracking and analyzing data ensuring processes are as streamlined and efficient as possible.


These 3PL’s are experts in their fields, with built-in best practices and strategies for waste-management that ensures profitability stays. A surplus of inventory leads to waste and profit shrinkage, whereas too little results in waited time that affects customer service and profitability. 3PL’s look beyond current inventory and proactively communicate with suppliers to maintain shipment schedules to guarantee production lines flow steadily.


Build a Client-Focused Culture

A 3PL who utilizes lean logistics principles gives you tons of “found time” you can spend on the things that matter most like customer service, bringing new products to market, and building brand loyalty. You can now spend more time talking to clients and predicting their needs and creating products to fill them. Get prepared for your customer satisfaction ratings to soar. The 2017 Third-Party Logistics Study reported that an impressive 86% of shippers said using a 3PL helped improve customer service.


Diminished Capital Investments

One of the main principles of lean logistics is doing more with less—or as we like to call it, working smart. You remove the need for costly warehouse space. This one cut alone saves money in areas like rent, insurance, and maintenance. It also removes the need to hire additional staff, manage additional staff, and expend capital on insurance and benefits. With a 3PL, they have a specially trained staff that is well-versed in your specific industry best-practices. That means no training time and waiting for the learning curve to kick-in! It’s 100% productive from Day One which lets you invest capital in other places in the business or increase your profit.


Work smart and reduce business stress by partnering with a professional 3PL. Choose a 3PL that employs lean logistics principles and industry best practices. Merchandise Warehouse is an efficiency expert and would love to partner with you! Please contact us to discuss how we can work together.

Tags: fulfillment, Supply Chain, Warehousing

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