Five Common Supply Chain Mistakes and How 3PLs Can Help You Avoid Them

Managing a supply chain can be a complex and often challenging task. Whether you're a small business owner or part of a large corporation, you may face major issues due to a misstep in your logistics strategy or even hiccups within the supply chain that are completely out of your control.

Supply chain issues can lead to costly delays, unhappy customers, and lost revenue. Luckily, this is where a third-party logistics (3PL) provider comes into the picture. 3PL providers can help you navigate common supply chain pitfalls and optimise your operations. They can handle all the key steps of your supply chain, such as handling your stock, picking, packing and then delivering your items to your customers door. A lot of 3PL providers EVEN offer returns management too.

In this blog post, we’ll cover five common mistakes businesses make in their supply chain management and how partnering with a 3PL may help you avoid them.

1. Underestimating Inventory Needs

One of the most common supply chain mistakes is failing to properly estimate inventory needs. Many businesses either overstock or understock inventory, leading to either unnecessary storage costs or stockouts that result in lost sales. The last thing your customers want to see is an ‘out of stock’ sign on your website, especially in peak periods, as this can cause you to lose out on so much revenue and sales. As well as this, you may order too much stock of items that do not do as well with customers, causing you to have to give discounts on these and potentially even lose profit.

A 3PL provider can help you to avoid this, as you will have access to advanced inventory systems and data analytics, which can help you accurately forecast demand, monitor stock levels, and therefore optimise inventory and be sure what stock you need to order the most of. Real-time data is used with these technologies, so you will always be aware of the stock going in and out, and this can help you keep your inventory levels positive, ensuring products are always available when customers need them.

2. Lack of Efficient Shipping and Delivery Strategies

Another mistake businesses make is not optimising their shipping and delivery strategies. This can lead to delayed shipments, high shipping costs, and frustrated customers. When it comes to online shopping, customers expect their shipping to not only be fast, but be free as well, and with major eCommerce giants, Amazon, offering same-day delivery and free shipping, it can be so hard to keep up with this.

3PL providers are experts in logistics and have established relationships with major couriers (e.g. Evri, DPD, Royal Mail and DHL), allowing them to negotiate competitive shipping rates and choose the best shipping methods for different regions. With a 3PL, businesses can leverage a range of shipping options (including international shipping), all while minimising delivery costs. This then means you can offer the best rates to your customers, whilst also knowing your items will be delivered to customers fast and efficiently. Putting your customers first is the key to growing a brand, therefore making sure your customers are happy with their delivery service is vital.

3. Failing to Optimise Warehouse Operations

If you’re a business who struggles with the day-to-day practices within your warehouse, 3PL could be the answer for you. If your business has inefficient warehouse operations, it can result in slow order fulfilment, misplaced inventory, and higher labour costs. As well as this, you may need to constantly train warehouse staff or even hire more staff and more warehouse space as the business grows. Scaling your business may feel more like a chore than an achievement.

Poor warehouse organisation can affect your ability to meet customer expectations and impact your overall profitability and therefore 3PLs can help by storing all your stock at their warehouse and fulfilling it for you. With huge warehouses, equipped with the latest technologies, you can get access to barcode scanning, automation, and warehouse management systems, to ensure your fulfilment is done properly and efficiently.

By outsourcing your warehousing to a 3PL, you gain access to a streamlined and optimised inventory storage system, reducing errors, speeding up picking and packing processes, and ensuring orders are fulfilled on time. 3PLs can also scale warehouse space and labour according to your seasonal needs, allowing for flexibility during peak times.

4. Neglecting the Importance of Data and Analytics

If you’re not constantly using data and analytics to help your business grow, then what are you doing?

Businesses that don’t leverage data to track their supply chain performance are at a significant disadvantage, as without proper tracking and analysis, you can miss valuable insights into how your supply chain is performing and where improvements can be made.

Your chosen 3PL provider will use their technology systems to collect and analyse vast amounts of data across your entire supply chain, from order fulfilment to delivery. By partnering with a 3PL, you gain access to detailed analytics that can help you optimise everything from inventory levels to shipping routes. Data-driven insights allow businesses to make smarter, more informed decisions, improving efficiency and customer satisfaction.

5. Not Planning for Supply Chain Disruptions

Unexpected disruptions - whether due to causes out of your control, supply shortages, or economic shifts - can throw a wrench in your supply chain, causing delays, increased costs, and customer dissatisfaction. Many businesses don’t have a recovery plan in place, which can leave them vulnerable during crises.

There is no need to panic about this if you work with 3PL providers, as they have contingency plans and risk management strategies in place to help businesses recover quickly from disruptions. Whether it’s having backup suppliers, alternative shipping routes, or diversified inventory storage, 3PLs are prepared for the unexpected. Their global network of warehouses and carriers allows them to pivot quickly and keep your supply chain running smoothly, even during challenging times.

Avoiding these common supply chain mistakes can significantly improve your business’s efficiency, reduce costs, and enhance customer satisfaction. A reliable 3PL partner can help you optimise your logistics operations, ensuring that you never fall into these pitfalls. By leveraging their expertise in inventory management, shipping, warehousing, data analysis, and risk mitigation, your business can streamline operations and stay ahead of the competition.

If you’re ready to take your supply chain to the next level, why not consider working with GNOC, a 3PL provider based in the North-east of England. Here at GNOC, we know what it feels like as a business to deal with the stresses of the supply chain, and therefore we are here to help and support businesses through it, every step of the way.

If you’re a small, medium, or large sized business, looking for some extra support with your logistics, why not contact us today or fill out of enquiry form, and one of our helpful team will be in touch as soon as possible.