Why Companies Choose to Outsource Logistics to a 3PL Company
Many companies struggle with whether or not they should use a third partly logistics company for product distribution or if they should continue to distribute goods themselves. At Hopkins Distribution we have seen companies outsource distribution for a number of different reasons. Below are some reasons why companies have decided to move their logistics services to a 3PL company like Hopkins Distribution.
Growth: A common reason companies make the switch from self-distribution to using an outside warehousing and logistics company is business growth. New clients come to Hopkins because the demand for their product has grown larger than the space available to them. When the need to expand exceeds your resources it can become necessary to move some, if not all, of your product to a third party distribution location.
Tax benefits: Many companies have decided that it would be to their advantage to receive the tax benefits that other locations have to offer. For instance, there are Nevada tax breaks when using a 3PL in Nevada. When your product is shipped to Nevada for storage and distribution, your company will not be taxed for the storage of your goods.
Location: Many companies have chosen to use an outside 3PL because they wanted to expand or have a presence in a different geographic region. West Coast fulfillment facilitates shipments to the western United States and can prove to be invaluable in terms of reducing your overall business costs. Reno, Nevada is considered the Hub of the West and is the primary location for companies seeking a centralized West Coast distribution point.
If your needs have exceeded your own resources, you would like to receive tax benefits, or you’d like to expand to the West Coast then consider using a 3PL company. Contact Hopkins today to discuss your specific third party logistics needs!