The downsides of using a third-party logistics companies in Canada

For a lot of people the boring tasks that come with every single business is something that they simply cannot deal with and they desperately try to find something that will help them handle those tedious tasks with ease. Since these boring tasks usually include things like inventory management, customer service, distribution, shipping and so on, a common tool that is being used our third-party logistics companies. These companies allow business owners to outsource these tedious tasks, which in turn should result with them having more time to focus on the rest of the business. However, 3PL companies in Canada have a lot of disadvantages that come along side the benefits, and that is why today were going to talk about some of them below, so definitely keep reading to find out more information.

You lose some control

For a lot of business owners, starting their own business is usually the result of them wanting to have control over their work and workspace. Working with a 3PL company is great and it can definitely offer you a lot of assistance, however that also means that you will have to come to terms with the fact that you will be losing some of the control when it comes to your inventory. Even though you will be able to monitor things like your inventory levels, any incoming shipments, deliveries and much more in real time on your laptop or tablet, you still won’t be able to watch the process happen in person and if you are someone who finds that really important, then this sort of outsourcing probably isn’t the best thing for you or your business and that is definitely something to take into consideration before you pay a company a lot of money.
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You will need a lot of money at the beginning

A huge problem that a lot of companies in Canada have when it comes to working with third-party logistics companies is the fact that the set up is a pretty big investment. Even though this is definitely an investment that will pay off in the long run, and will in fact save you money in the long run, if you are someone that is just starting out or a business that doesn’t have a lot of extra money, hiring a 3PL company to help you run your business can definitely be a huge financial challenge. If you aren’t willing to spend a lot of money on a company like this, then you should maybe consider finding a good e-commerce platform, such as Shopify, that will help you run the tasks in a similar way. Even though this won’t replace the expertise of third-party companies, it also won’t be the same kind of expensive investment either.
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It may end up reflecting poorly on your company

When you are working with an outsourcing company the fact is that there is always the risk that your business will be reflected on poorly if the service of the company provides isn’t up to the standards that your business is on. If your customers are already used to some kind of service and they are satisfied with it, getting service that isn’t up to par will definitely be a let down, and since they don’t care who is in charge of getting the product to them, your business is the one that will be thrown under the bus. Because of this you need to make sure that the 3PL company you’re working with is a trustworthy one, but even then there’s risk still stands
Before you make any decision it is important for you to look at both the advantages and disadvantages, which is why we feel this is the perfect article to read before making a decision whether third-party logistics companies in Canada are the way to go for you. We really hope that you found this article interesting and educational and that it made your decision easier in some way.


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