Third Party Logistics (3PL) providers offer a wealth of benefits to the retail procurement industry. Given their extensive knowledge of supply chain management, these providers deliver a comprehensive solution for assembly, distribution, packaging and warehousing. When opening a new store, employing a 3PL gives companies reliable competitive advantages through advanced logistics solutions, in turn, amplifying profitability.
There are several reasons why a retail company could benefit from a partnership with a 3PL provider, including:
- Cost savings
- Extensive knowledge
- Resource network
When opening a new store, one of the greatest concerns is capital. However, by utilizing a 3PL provider, companies will save on time and money. A logistics provider will eliminate the need for staffing, technological tracking and upgrades, transportation and warehousing.
Instead, the store will systematically request new inventory by a specific date and the 3PL will deliver. This will eliminate costly mistakes, thus lowering risks and allowing the business to grow. Billing, distribution audits, optimization, paperwork, staffing and training to ensure the store’s products are shipped accordingly are all the responsibility of the logistics provider.
One of the primary reasons a company should work with a 3PL provider to open a new store is their extensive expertise with all aspects of the supply chain. 3PL’s are aware of all logistics best practices and remain up-to-date on the most recent technological developments. Their software can provide advanced reporting, automated inventory management and procedural visibility to ensure the store can track and report upon the movement of goods.
With the ability to scale labor, space and transportation based on inventory requirements, companies that function during seasonal time periods will enjoy minimal strain during this transition. This allows stores to consume more warehouse space and resources during the busy season and less during the off-season.
Moreover, a 3PL provider gives companies the opportunity to expand into different regions without any logistical barriers. Most logistics companies have strategically-located distribution centers to guarantee the quick shipping of goods. This decentralization strategy allows for lower costs and improved delivery times.
With the resources to adjust and improve all aspects of the supply chain, 3PL providers will utilize the quickest and most cost effective method to ensure their client’s needs are met. By implementing the resources to restructure the supply chain at any time, logistics providers can analyze and monitor practices which will eliminate inefficiencies thus streamlining the process. Although the store will only see the fruit of these labors through on-time, accurate deliveries, it is important to know that 3PL providers are working to deliver the best costs while keeping efficiency and optimization in mind.
Finally, with a vast network of resources at their fingertips (which provides a competitive advantage over internal supply chains) 3PL’s utilize a resource network ensuring every step along the supply chain is efficient and cost-effective. For instance, logistics providers can utilize relationships to acquire volume discounts which will lower overhead while maintaining fast service. Stores will benefit from the relationships their 3PL have built through an improvement in the bottom line.
About STC Logistics
Founded in 1992, STC Logistics specializes in retail procurement and new store opening logistics with a pledge to deliver superior and flexible solutions. We maintain a resolute commitment to offer the most valuable and resourceful technological solutions to its clients regardless of destination, size or weight. As a result, our company has become a trusted provider of logistics solutions for many industry partners, especially in the retail procurement industry.
To learn more about how our logistics specialists can help you open your new store, contact us by clicking here or call us at 800-547-4324.
For more information about selecting a Third Party Logistics (3PL) partner, download our free checklist by clicking below!
Pop-up stores are a fairly new concept used by retailers.These trendy stores pop-up for a short period of time and close once their stock is sold out. For example, they can open their doors over a seasonal period of time, like Halloween costume stores or other holiday shops. They stock their stores with a large selection of goods and use effective brand marketing to sell out their stock over the course of the season. Then, the store can close and open elsewhere with new and different stock.
Pop-up shops serve a niche market, so they are typically open for about 3-6 months; sometimes for a shorter or longer period of time. Hiring managers must plan carefully to successfully set up the store, hire adequate staff, sell out the stock and close down the store in a timely fashion while still making a profit.
So what makes these specialty shops profitable? The key to pop-up store success is making sure store fixtures, displays and stock are all set up properly in time for opening. For this to happen, retailers must work with a reliable logistics company. A store owner that is let down with late or missing stock delivery can end up seeing his or her pop-up store open without sufficient stock to sell.
Late stock arrival means that stock is left over at the end of the season, defeating the objective of such a store. While considering many other details, the owner and supporting staff cannot spend countless hours tracking stock and worrying about lost shipments. When launching a pop-up store and choosing a reliable logistics company, retailers need to consider the following:
• Does the logistics company specialize in retail procurement?
• Does the company possess the infrastructure to deliver shipments of all sizes?
• If needed, can the company offer same-day or white glove service?
• Can the company offer free nationwide warehousing and storage facilities?
• Has the company received positive feedback from present or former customers?
• Do they offer high technology cargo tracking capabilities for complete visibility of freight?
• Do they care about the customer enough to ensure their success?
• Are their trucks equipped with lift gates?
• Does the company offer cross-docking services?
Imagine that you have invested money in opening a pop-up store, only to discover your POP advertising materials have been damaged or delayed. Retail procurement professionals must work with a trusted logistics company to ensure that all materials are delivered to one store or hundreds, on time—every time.
STC Logistics specializes in logistics solutions for new retail store openings. We have incorporated numerous checkpoints into our freight monitoring services to ensure flawless and timely delivery of goods. With our 3PL technology, we are able to efficiently track, trace and control each shipment and can serve as a one-stop solution for retailers.
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