If you’re running a growing business in Canada or the U.S., you know that managing inventory, shipping, and fulfillment gets harder as demand rises. What once worked with a small in-house storage unit or a rented warehouse quickly becomes a bottleneck.
This is where third-party warehousing (3PL support) comes in. By outsourcing warehousing and logistics to professionals, you free up time, reduce costs, and ensure that your customers always get their orders on time.
But how do you know if it’s the right time to make the move? In this article, we’ll walk through the top 7 signs your business needs third-party warehousing support, with real-world examples, tips, and strategies for Canadian and American businesses.
Top 7 Tips That Your Business Need Third-Party Warehousing
1. Your In-House Storage Is Overflowing
When your warehouse aisles look more like an obstacle course than a streamlined storage system, it’s a red flag.
Why it matters: Overstocked facilities lead to poor organization, slower picking times, and higher risk of product damage.
Third-party warehousing solution: Outsourced warehousing gives you scalable storage space, so you pay only for what you need whether it’s seasonal surges or year-round growth.
2. You’re Spending Too Much Time on Logistics Instead of Growth
As a business owner, your time should be spent on strategy, marketing, and product development not chasing lost packages or managing warehouse staff schedules.
Why it matters: Time spent on logistics is time taken away from scaling your business.
Third-party warehousing solution: 3PL providers handle inventory management, order fulfillment, and returns so you can focus on high-value tasks.
3. Your Shipping Costs Are Eating Into Profits
Shipping across Canada and the U.S. is expensive especially when done inefficiently.
Why it matters: Small and mid-sized businesses often lack the volume discounts that large-scale 3PLs negotiate with carriers.
Third-party warehousing solution: By outsourcing, you tap into a 3PL’s pre-negotiated shipping rates, distribution networks, and strategically located warehouses that cut transit times.
4. Your Customers Complain About Delayed or Wrong Orders
Order accuracy and speed are non-negotiable in today’s market. A few missed shipments or delayed orders can push customers toward competitors.
Why it matters: Poor fulfillment damages brand reputation and hurts customer loyalty.
Third-party warehousing solution: With real-time inventory systems, barcode scanning, and optimized warehouse layouts, 3PLs improve accuracy and speed.
5. You’re Expanding into New Markets but Lack Infrastructure
Planning to sell across the border from Canada to the U.S. or expand into new regions? That’s a massive challenge if you rely only on one local warehouse.
Why it matters: Cross-border logistics involves customs compliance, duties, and added shipping times.
Third-party warehousing solution: A 3PL partner with North American coverage can store inventory closer to your target customers and simplify cross-border shipping.
6. Seasonal Demand Creates Chaos in Your Operations
Holiday spikes, back-to-school rushes, or promotional sales can wreak havoc on in-house warehousing.
Why it matters: Without flexibility, you’re either overstocked (and paying for unused space) or understocked (missing out on sales).
Third-party warehousing solution: 3PLs offer flexible storage solutions for retailers and eCommerce brands—scaling space and staff up or down as needed.
7. You’re Unsure When to Use a 3PL but Feel Stretched Thin
If you’re asking yourself, “When should I use a 3PL?” the answer is usually sooner than you think.
Why it matters: Waiting too long often leads to customer dissatisfaction, lost sales, and unnecessary costs.
Third-party warehousing solution: 3PLs aren’t just for big enterprises, small and mid-sized businesses benefit from outsourcing too. From startups handling 200 orders a month to established retailers shipping thousands, 3PL support adds structure and scalability.
Benefits of Outsourced Warehousing at a Glance
Outsourcing your warehousing to a third-party logistics (3PL) provider isn’t just about freeing up space—it’s about transforming the way your business operates. Here’s why companies across Canada and the U.S. are making the shift:
1. Scalability: Grow Without Worrying About Space
As your business grows, so does your inventory. Seasonal spikes, new product launches, or expanding into new regions can quickly overwhelm an in-house warehouse. Third-party warehousing offers flexible space and labor, so you can scale up during peak demand and scale down when things are quieter—without paying for unused capacity.
2. Cost Savings: Lower Overhead and Access Bulk Carrier Rates
Running your own warehouse means paying for rent, utilities, equipment, insurance, and staff—costs that don’t disappear even when sales dip. With outsourced warehousing, you only pay for the space and services you use. Plus, 3PLs negotiate bulk shipping rates with carriers, helping you cut transportation costs significantly.
3. Expertise: Benefit from Logistics Professionals
Inventory management, fulfillment, and distribution require specialized skills. 3PLs have trained staff, advanced technology, and proven processes that reduce errors and increase efficiency. Instead of learning by trial and error, your business instantly benefits from years of logistics expertise.
4. Customer Experience: Faster, More Reliable Fulfillment
Today’s customers expect fast, accurate, and affordable delivery. Third-party warehouses are often strategically located near major markets, which reduces shipping times. Add in robust order management systems, and you get fewer mistakes, faster fulfillment, and happier customers who come back again and again.
5. Focus: Spend More Time on Business Growth, Not Warehouse Management
Managing inventory, staff schedules, and shipping issues can eat up a business owner’s day. Outsourcing warehousing removes that burden so you can redirect energy toward marketing, product development, and building customer relationships. In other words, you focus on scaling your business, while your 3PL focuses on logistics.
FAQs About Third-Party Warehousing
Q1: What is third-party warehousing?
Third-party warehousing (3PL) is when businesses outsource storage, inventory management, and fulfillment to a logistics partner instead of managing it themselves.
Q2: When should a business use a 3PL?
When logistics demands begin overwhelming internal teams, costs are rising, or customers are unhappy with fulfillment speed.
Q3: Is third-party warehousing only for large businesses?
No. Small and mid-sized businesses across Canada and the U.S. benefit from outsourced warehousing, especially during growth phases.
Q4: What industries use third-party warehousing?
Retail, eCommerce, consumer goods, food & beverage, and healthcare are common sectors leveraging 3PL support.
Q5: How do storage solutions for retailers work?
Retailers can store inventory in 3PL facilities, where it is picked, packed, and shipped to stores or directly to customers as orders come in.
Conclusion: Is It Time for Third-Party Warehousing Support?
The signs are clear: if your warehouse is overflowing, customers are frustrated, or logistics are eating up your time and profits, third-party warehousing could be the growth lever your business needs.
By outsourcing to a trusted 3PL partner, you gain flexibility, cost savings, and professional support that lets you scale confidently across Canada, the U.S., and beyond.
Ready to stop struggling with logistics? Partner with Six Side Logistics for tailored storage solutions, outsourced warehousing, and North America-wide shipping. We’ll handle the heavy lifting while you focus on building your brand.