Benefits of Having a 3PL in UtahNovember 18, 2020
Sourcing an order fulfillment partner who can provide efficient, affordable warehousing and fulfillment services is a critical aspect of a successful ecommerce company. It’s crucial to find the right third-party logistics partner to store, pack, and ship your products to your customers.
If you’re searching for a 3PL provider, Salt Lake City, Utah should be on your list of considerations. This Utah capital, as well as surrounding cities, is quickly becoming a sought-after warehouse and order fulfillment location among ecommerce companies.
Due to its growth mindset and location, Utah is an outstanding location to establish a 3PL partnership.
Utah boasts business-friendly policies
Utah’s governor and legislature are focused on attracting companies large and small to Utah, and this has led to an environment of business-friendly laws and regulations. Corporate taxes are low, which means that pick and pack costs can remain competitive, oftentimes significantly lower than what other locations can offer. The state has a flat five-percent personal and corporate tax rate.
Utah’s leaders are interested in economic growth, so they consistently review laws and regulations, then make adjustments to help the local economy thrive. Utah regularly ranks as one of the best states to do business because of its business-friendly policies.
- 5% Corporate tax rate
- 2.6% Average unemployment rate in 2019*
- No. 1 Best State for Business by Forbes
Utah has quick access to the West
In today’s Amazon-dominant world, consumers expect their online shopping purchases to arrive on their doorstep within 2 days of clicking “purchase.” Considering shipping time is one of the single largest factors determining whether or not a customer will be pleased with their purchase, or whether they will order products from you in the future, eCommerce companies should prioritize keeping it low.
If your customers are primarily located in the West, but you still have customers on the East Coast (or even located internationally), Salt Lake City is a commonsense option. Utah is ideally located within reach of peripheral states including California, Arizona, Oregon, and Colorado. It is centrally located, allowing Utah 3PL providers to ship to populations west of the Rockies in one to two ground shipping days. Salt Lake City ranks second in the West for its access to transportation. Yet even though Utah is technically a western state, it doesn’t take long for products shipped from Utah to reach the Midwest or East Coast. Utah’s 3PLs are constantly working with carriers, including UPS, FedEx and USPS, to offer more delivery options and quicker services at a fair price, enabling quick and inexpensive shipping across the country and internationally.
That being said, your customer’s population distribution matters when choosing a warehouse location. Some Utah 3PL providers can ship all over the world at competitive rates.
Utah has a history of excellent transportation infrastructure
To keep up with Utah’s rapidly growing population and economy, the state is constantly investing in building and maintaining its roads. This means Utah’s highways are well-maintained, which is great news for companies that rely on ground transportation to ship products.
According to the National Association of State Budget Officers, Utah almost doubled its transportation spending in 2019, investing $1.3 billion on its roads. That makes it one of the top 15 states that increased its spending by at least 10% in 2019, as reported by the Wall Street Journal.
The Utah Department of Transportation is a leader in highway construction in the U.S. because of its innovative processes that support fast, cost-effective construction and result in high-quality roads. Utah is serviced by two major interstate freeways — I-15 and I-80 — as well as a well-established rail system. In fact, the first Transcontinental Railroad was completed near Salt Lake City in the mid-1800s, giving Utah the nickname “the crossroads of the West.”
Due to Utah’s quality transportation infrastructure, and the state’s commitment to continue investing in its roads, ecommerce companies can feel secure knowing their third-party logistics partner in Utah will be in the ideal location.
Utah is not limited to outstanding ground transportation infrastructure. The new expansion at the international airport in Salt Lake City provides significantly increased capabilities. Major delivery services, such as UPS, FedEx, and USPS, all have significant fulfillment centers in the state. Via the international airport, these delivery services can offer air freight services to locations all over the world. The ability to move freight in and out of Salt Lake City is significantly easier and more cost-effective than it is in locations such as southern California.
This western state’s infrastructural growth doesn’t seem to be slowing down any time soon. Utah is currently taking steps to develop an Inland Port, a project that would turn the state into an international business destination. The port would be used to load and unload shipping containers, repackage and ship items, and serve as a customs office for international products to be processed and distributed. It is a direct investment into more warehouse and supply chain infrastructure for the state of Utah, and a good sign of the state’s future possibilities.
Utah’s Top Logistics and Order Fulfillment Partner
Enlinx is a true omnichannel fulfillment center located in Salt Lake City, Utah. It provides fulfillment, warehousing, custom services, retail distribution, and supply chain services. We help ecommerce businesses increase their earnings and speed to market by providing quality warehouses, order fulfillment and client support.
If you’re interested in learning more about the benefits of working with a Utah 3PL company, call us or fill out our contact form.
*Note: Utah’s unemployment rate as of Aug. 2020 was 4.1% — higher than average due to COVID-19 related unemployment. Throughout the pandemic, UT has maintained one of the lowest unemployment rates in the country.*