Business owners who owned a website that suddenly went viral, and then crashed under the additional demand, know that exponential growth is not always a good thing.
Third-party logistic (3pl) solutions are your backup plan when you need the flexibility to expand at a moment’s notice. They offer you a way to manage sales, reduce overhead, and be scalable when it counts the most.
To grow a company in a sustainable manner, a backup plan is a must for when business demand threatens to short out your business servers’ capabilities.
Image credit: ddpavumba | FreeDigitalPhotos.net
Manage growth by outsourcing
Until you get steady growth, your business may appear more like a bucking bronco. It will surge forward one minute and retreat the next.
This chaotic growth pattern is typical of startups that still have to get their business legs as the ocean of the free market sweeps over them, pulling them this way and that.
How you handle the additional stresses will determine whether you can eventually grow your business into a larger entity or be forever tossed about in the swells of economic forces that seem beyond your control. To take control of your ship, learn to do the following:
#1. Manage sales and fulfillment
Sales are the lifeblood of your enterprise. If sales are down, you need to be proactive to create more interest. If there are problems in the fulfillment part, you need to track your delivery from start to finish. Order fulfillment and tracking services can require a large amount of software and logistics planning.
To keep this from keeping your business small when demand heats up, use third-party companies to gain more control and expertise in this area.
#2. Reduce overhead
Business cycles go up and down and require that you are able to downsize the workforce or increase warehousing, depending on the overall business climate. Off-site services with their own workforce and warehouses that are made available for your use can help your business reduce overhead.
Instead of focusing on renting more floor space or implementing an assembly line, you can use someone else’s resources and save money, too.
#3. Become scalable
Your website might be able to handle thousands of visitors, but how about tens of thousands? Test your website with virtual loads. Similarly, if you partner with distribution and delivery services, then you can scale your business’ ability to service ten times the number of current customers. If demand spikes, you’ll be ready for it.
About the Author:
Annette Hazard is a freelance blogger and small business owner that suggests 3pl with Elite Ops to help keep up with demand.
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