The Benefits of Short-term Projects for your 3PL

Most logistics providers tend to focus on long-term deals when it comes to their sales efforts. While those are the stand-out customers that a 3PL typically has and are required for stability, short-term projects stand out as a versatile and effective tool for warehouse providers.

From the manufacturer’s perspective, the main reason to outsource a short-term warehouse project is to have their requirements met while not committing to long-term fixed costs. This arrangement is typically viewed as beneficial for the client because of the flexibility it provides, but a warehouse provider can use these opportunities to their advantage.

Here are some key benefits for the 3PL:

Boosted Rates — Since the customer is taking on no long-term commitment and often has minimal time for negotiation, a 3PL can charge higher than usual rates for short-term projects. This can result in significantly increased revenue for these months, which results in higher overall annual margins for the company.

Fill Gaps in Available Space — At facilities where a warehouse has a sudden loss of customers or a decrease in volume, short-term projects are a great way to keep the warehouse full. Sales for long-term projects often take months to complete as they are complex and typically require more decision-makers to be involved, which causes months when the warehouse would otherwise have empty space.

The ability for new customers to test a new provider — By doing a great job on short-term projects, a 3PL can showcase its services to new customers. Once customers have seen the provider’s capabilities, they are more likely to give future business to the 3PL, which results in long-term partnerships.

Employee Engagement — Rather than handling the same products daily, a new project can create more excitement about doing something new and different, leading to a more motivated and productive team. Engaging team members in short-term projects can also provide a new sense of ownership and empowerment by giving different team members new responsibilities.

Spartan has successfully completed several large, short-term projects within the last year and considers this an important part of our business. Interested in learning more? Contact us at the form below or give us a call at 614-497-1777.