Benefits of a 3PL: Efficiency

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As the business landscape continues to change dramatically, companies of all sizes and levels are looking for different ways to improve efficiency, minimize risks and save time and money. Whether it’s a start-up company looking to gain market share locally, or a Fortune 500 giant wanting to take another step forward this year, business leaders and decision makers are surely looking for ways to do all of the above. There are also “pain points”, or “school fees” as a perspective partner explained them to me, that every company goes through as they grow and their dynamics begin to change.

3PLs are a great way to achieve efficiency improvements, reduce risks with employees and products, and save money! 3PLs also have a knack for finding those “pain points” or “school fees” while working with clients, and can create customized solutions to fit whatever needs may arise.

The best way to show efficiency upgrades are to use an example to show how much growth can be achieved when a company is run at peak efficiency. This week I will outline and explain how a very successful company, with a change in business strategy, has improved their efficiency by working with a 3PL company for their storage and distribution needs. This has allowed them to grow exponentially in the years that they have been partnered with Murphy; they have grown become a Fortune 500 manufacturer.

How 3PLs Help Improve Efficiency

Murphy’s COO, Paul Welna says, “Since we do not own or sell any of the items that we warehouse, we need to be efficient and effective in the way that we handle them so that we can provide the best value to our clients.” We have the resources, man power and equipment to efficiently and effectively store and distribute product throughout multiple channels. This allows customers to focus on what they do best, whether that’s manufacturing or selling the product, and leave the rest in our hands. “When they came on board with us, they were running a warehouse with 11 people, we did the same job in our warehouse with 5, reducing their costs by more than half,” Welna continued. There’s no need to stress about where you are going to store a product or how many men it will take to get that last truck loaded on Friday evening, because those are the things we focus on every day!

Working with a 3PL also leaves clients with peace of mind knowing that they can meet their customer’s demands at any time. Clients can grow or shrink the amount of product they have in our warehouse due to the demand of an item at any given time. “Murphy installed the correct equipment and put the right people on the job to allow one of these clients to grow from 100,000 sq. ft. of space up to 150,000 within a couple of months,” says Welna. “Because we do our jobs right, they trust us to do more and more of their just-in-time deliveries of raw materials each month.” Whether fluctuation of a product’s demand is for a year, a season, or even just a couple of weeks, adapting to these trends is one area where 3PLs consistently excel. At Murphy, clients only pay for the space that they use each month, allowing them to adjust their manufacturing or shipping volumes at any time. 

Thanks for reading, be sure to check back every week to learn more about our growing industry and company! Next week we will talk about how 3PLs can help companies reduce risks with employees, products and distribution.