Why Your Contract Manufacturer Should Also Be Your 3PL Solutions Provider
Choosing a soft goods manufacturer also capable of Third-Party Logistics (3PL) offers numerous benefits for businesses looking to streamline their supply chain operations while improving overall efficiencies. HBI Textiles is proud to offer this added service in addition to our normal manufacturing protocol. Here are some reasons we think you should add this capability to your selection criteria when seeking out your next manufacturing partner:
1. Expertise and Specialization: We have expertise in logistics and supply chain management. This brings specialized knowledge and experience in handling various aspects of the supply chain— from transportation and warehousing to order fulfillment and distribution. By outsourcing these tasks to an experienced manufacturer, you gain bandwidth to focus on core business activities. This is especially important when starting a new business, or launching a new product.
2. Cost Savings: We have established networks, resources, and technology that allow us to optimize processes, reduce transportation costs, and minimize storage expenses. More importantly, keeping these activities with your manufacturer limits the touch points, which ultimately limits the cost. A 3PL can also help you avoid the upfront costs of investing in your own infrastructure and technology.
3. Scalability: As your business grows and/or experiences seasonal fluctuations in demand, we are capable of quickly adjusting resources to accommodate your changing needs. This flexibility allows you to scale your operations up or down without the challenges of managing these changes in-house. As a manufacturer, we often times work with start-ups. Utilizing 3PL services allow you to quickly scale with minimized effort.
4. Improved Efficiency: 3PLs utilize advanced technologies for inventory management, order processing, tracking, and reporting. These technologies enhance the accuracy and speed of your supply chain operations, leading to improved efficiency and customer satisfaction. With all finished and raw goods in one place, you’ll quickly gain control over purchasing while better understanding usages. From purchasing raw goods to manufacturing, warehousing to distribution and fulfillment. They all depend on one another.
5. Focus More on Core Competencies: By outsourcing logistics tasks to a 3PL capable manufacturer, your team can confidently turn their attention towards your own core competencies and strategic initiatives.
6. Access to Resources: As a 3PL service provider, we have access to a broad network of carriers, couriers, warehouses, and distribution centers. This network can help you expand your market reach, reduce transit times, and enhance overall supply chain performance. Additionally, we’ve built a trusted assortment of packaging providers, all eager to offer the best solutions, at the best price. This includes custom packaging designed to fit your exact need.
7. Risk Mitigation and Lead Times: We are positioned to help mitigate the risks associated with supply chain disruptions, natural disasters, labor strikes, and other unforeseen events through contingency plans that minimize the impact to your overall business. We’ll take on the daunting task of managing multiple lead times (raw goods and packaging) in an effort to make sure your manufacturing project remains on schedule.
8. Global Reach: If your business operates on an international scale, we have the ability to navigate complex customs regulations, international shipping, and local distribution. This enables you to tap into global markets without getting bogged down in logistical complexities. This is especially valuable when sourcing raw materials on an international level.
9. Enhanced Customer Service: With improved accuracy, speed, and reliability within your supply chain operations, you can provide better customer service by meeting delivery timelines, reducing errors, and offering real-time tracking information. We are capable of connecting to most marketplaces (Amazon, Shopify, Etsy, Squarespace, Ebay, to name a few). Additionally, we have experiences working with Amazon (FBA) and understand their requirements. This better positions you for success.
10. Competitive Advantage: Outsourcing logistics to a 3PL capable manufacturer can give you a competitive advantage by allowing you to focus on core competencies, improve service levels, and respond more effectively to market changes. This may put you steps above your competition.
It's always important to carefully assess your business's unique needs and objectives before selecting a manufacturer. The ability to provide 3PL services should be a part of that selection criteria. Even if the need is not immediate, the market is ever changing. And when it does, a well-chosen manufacturing partner will be in a perfect position to help you a maneuver this changing environment.
What does your next project call for? Need help finding a solution? HBI is here to help. Please CONTACT US today.