Looking to increase plant capacity to expand your operation? Here is how a strategic 3PL (third-party logistics company) can serve as a seamless extension of your operations. Plant capacity and your ability to take on more volume and increased complexity plays a significant role in your operation.
Plant capacity, or the maximum level your plant can achieve, whether it is well managed or not, directly impacts operational output and overall project efficiency. Manufacturers need to figure out a way to increase capacity while maintaining quality standards and keeping overhead under control. An impactful way to do this is by increasing plant capacity with more efficient processes.
Understanding Plant Capacity Constraints
While increasing plant capacity could be costly or time consuming, the risk of not increasing plant capacity could be more detrimental. Maybe you’re seeing an influx in new jobs and rising production demand, which is causing you to face some space limitations and labor shortages. Not optimizing your plant capacity is likely holding you back. Without maximizing what is already available to you, your business will likely face bottlenecks in production, missed deadlines, and an overall reduction in throughput.
Why Use a 3PL to Alleviate Operational Pressure
If you’re experiencing operational pressure within any aspect of your production and manufacturing process, finding a strategic 3PL partner could help alleviate that pressure. While there are transactional 3PL providers who can assist with more one-off projects or for the short term, a strategic 3PL partner will set your operation up for long-term success. A strategic 3PL partnership helps by focusing internal resources on core production, ultimately achieving broader business goals. Using a 3PL with a strategic approach will directly impact plant capacity and overall production time.
How a 3PL Becomes an Extension of Your Operation
Finding the right 3PL relationship is only the start. You want to be sure you’re getting all the benefits of the partnership by making them a true extension of your operation. Integrating with their Warehouse Management System (WMS) allows for full transparency and support. Working within the same platform ultimately creates a collaborative culture with shared key performance indicators (KPIs).
Full integration with your 3PL company, like Sunland Logistics Solutions, puts full support and expertise behind every aspect of your operation. Sunland’s automotive and industrial logistics solutions include full supply chain management through an integration of Enterprise Resource Planning (ERP) software. From kitting and sequencing to subassembly support, an experienced 3PL provider can help meet and potentially exceed business goals.
Increasing Effective Plant Capacity
While it can be time consuming, shifting warehouses, inventory, and light assembly work to a 3PL-managed facility could increase plant capacity and allow you to maximize production. If the cost is comparable to where you’re at currently, moving to a 3PL-managed facility opens more opportunities for effective plant capacity. Relocating gives you access to the 3PL team who can help influence the overall flow of materials and finished goods, all positively impacting your bottom line. By reallocating non-core processes to Sunland, manufacturers can free up floor space and reduce direct labor costs. This could be extremely impactful for your own production and manufacturing performance.
Choosing the Right 3PL Partner
When choosing the right 3PL partner, there are a few things to keep in mind. Do they fit your industry? Are you looking to expand industries? If so, find a 3PL partner who meets both your current needs and future needs. The right 3PL partner will be tech-forward and flexible with your business growth plans and goals. It’s never a bad idea to request track records of other long-term partnerships any 3PL provider has had. Ensuring their results are reflective of their reputation will validate if they’re the right partner for you.
Boost Your Plant Capacity
Boost your plant capacity and business growth without relying on capital expenditures. Maximize manufacturing with a strategic partner who can help streamline all aspects of your assembly like and production. With a 3PL partner like Sunland Logistics Solutions, you can turn your logistics into a strategic growth lever. Contact the Sunland Logistics Solutions team today to start the conversation on how their 3PL expertise and experience can help level up your business.
