Tuesday, April 23, 2024

On the Logistical Advantages of Third-Party Warehousing Services in Supply Chain Management

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Businesses in a wide variety of industries and markets can benefit greatly from the advantages associated with third-party warehousing services, even if they aren’t aware of them yet.

If you’re staring down a new initiative (or just the prospect of outsourcing some of your inventory management to a third-party partner) here’s some validation.

Cost-Savings (The Big One)
Arguably the most tangible benefit of third-party warehousing services has to do with the cost savings.

When you outsource warehousing to a third-party supplier, you no longer need to worry about investing in new warehouse space, maintaining existing facilities, or covering costs associated with climate control, security, insurance, and maintenance – among other things.

A third-party provider will cover all of that (and perhaps more) for you, depending on their capabilities.

Fewer Staff Expenses
This deserves its own separate callout. Managing the human resources that staff and maintain a warehouse, whether you own or lease it, is a full-time job on its own (or several full-time jobs, at that).

Working with a third-party provider takes this off your plate, minimizing the costs and headaches of managing a whole warehouse crew.

The Ability to Devote Resources to More Pressing Initiatives
Are you looking at the potential to adopt a new ERP software? Switching suppliers for critical products or raw materials?

All of those things – and others – sap valuable time, efforts, and resources. When you take in-house warehousing off the table, that’s just one thing fewer you need to worry about.

This also frees you to focus more of your resources on your organization’s core competencies.

Improved Operational Efficiencies
More than one study has suggested that many warehouses are inefficiently operated, and at least one (the results of which were published in Conveyco in 2023) suggest that as many as 80% of warehouses in the country have no automation capabilities whatsoever.

Owning (or leasing) and running a warehouse is effort and resource-intensive, and it’s pointless if the end result is inefficient, anyway.

Working with a third-party provider can take that off your plate as well.

Access to Industry Expertise
When you outsource to a third-party logistics provider for warehousing services, you can potentially be getting so much more than warehouse space.

You might be getting access to industry expertise, experience with inventory management tools/automation, as well as access to additional logistical services, such as cold storage, quality control protocols, order processing, cross-docking, de-vanning, and more.

Flexibility and Scalability
Fluctuating needs for space, labor, and transportation capabilities can change with the seasons. When you outsource to a third-party for warehousing services, much if not all of that can be managed by your partner, giving you the flexibility and scalability needed for growth.

Peace of Mind
Outsourcing to a third-party logistics provider with a warehouse management system also gives you peace of mind. When you outsource, you no longer will need to keep up with changing regulatory requirements or spend your own time keeping at the forefront at changes in technology and tools. That’s on the service provider, saving you time, money, and putting your mind at ease.

Choosing the Right Partner for Third-Party Warehousing Services
Not sure where to start? There may be a lot of loose ends, but a good place to start looking (especially if you are looking for 3PL services in New Jersey) is Snapl.

Conveniently located in Gloucester City, New Jersey, Snapl has a wide range of capabilities and offers an equally diverse assortment of services including temperature-controlled warehousing and distribution management, cross-docking, de-vanning, multi-vendor consolidation, and more.

For more information about their services, consult their website or get in touch with their customer service directly at 856-393-3209. More efficient logistics and warehousing solutions are within reach.

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