The rise and advance of 3PL companies in Australia can be attributed to the growth of consumer markets. Business involved in selling consumer goods, especially food items, pharmaceutical, and fashion accessories need warehousing and transport services. They need storage facilities to store their goods and a large fleet of vehicles to move the goods.

Let’s discuss reasons for businesses relying more on third-party warehousing and transport services.

1. Warehouses

Setting up warehouses requires a huge expenditure on facilities and trained staff. Also, it isn’t possible for a business to open a facility at every strategic place. On the contrary, renting storage space in a large facility is both practical and affordable. A warehousing company with facilities at all strategic places can serve as a warehousing partner for different businesses.

2. Transportation

3PL logistics companies with large fleets of vehicles, including smaller pickup vans, are better suited to take the responsibility of making timely deliveries across Australia. Timely delivery of goods is the key to success in the consumer goods market. It is the only way to get an edge over others and secure repeat orders.

3. Safety

Products you buy from factories or raw materials sourced from mines are your assets. It is the investment on which you expect a return. For this reason, the safety of goods is paramount for businesses dealing in consumer products. Third-party warehousing and transport companies assure businesses of proof safety of the goods.

4. Better Inventory Management

Hiring third party logistics Australia is the best way to ensure efficient inventory management. Instead of storing all types of goods, you should keep the goods that are in demand. A logistics partner can prevent you from investing in low-demand goods. The company will keep you updated on the availability of supplies so that you can scale your operations whenever the demand rises.

5. Flexibility

Joining hands with a third-party logistics partner allows you immense flexibility in scaling your operations. For example, you can store more goods when the demand is high and surrender excess space to the warehousing company to save money during low-demand season.

It is true that 3PL companies in Australia charge fees for their services, but they allow customization and flexibility. For example, you can hire warehousing services only or choose to hire transport only. You are free to choose a service and scale operations according to the market demand and your budget.