Who Should Not Work With a Third-Party Logistics Company?

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

The fact is, no single solution is perfect for every business. There are times when using a logistics company doesn’t make sense, no matter what size your business is.

Businesses With Limited Cash Flow

Whether you’re a startup or not, if you don’t have the funds available, you may need to do it yourself. Sometimes your biggest resource is time and you have to work with what you have.

“Typically, there are only a few cases that might not make sense to use a third-party fulfillment service. First, if a company is a true start-up without significant cash flow to pay for a third-party service, using an outsourced provider will likely not be the best decision. In these cases, oftentimes the business owner must literally bootstrap the growth of the business, leveraging his or her time instead of paying employees or contractors.”

Highly Specialized Businesses

You may be surprised at the amount of customization many logistics companies offer—I certainly was. Still, not everyone will be able to find a company that can do what they want. If your business has highly specialized needs, it might make more sense to handle your fulfillment internally.

“Second, there are companies that have uniquely specialized needs. An example might be a company that manufactures customized orders using specialized equipment. But for most other companies, third party fulfillment services can be a huge time saver that also offers cost savings.”

If you fall into one of the above categories, think carefully and do your research before considering third-party logistics.

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

Retail Fulfillment

What is Retail Fulfillment?

Retail fulfillment is a new and interesting concept. Though for the most part it just sounds like e-commerce, retail fulfillment is different because we take

Do You Want To Boost Your Business?

drop us a line and keep in touch

Translate »
X
Welcome to Our Store
wpChatIcon