The Increasing Importance of Warehousing In Logistics

At present, warehouses are no longer used just for the purpose of storage. In this conscious, efficient, and cost-driven environment, most of the manufacturers are actually reevaluating the definition of a warehouse. If something doesn’t lend itself to a highly mechanized, low-labor, or a high-speed environment, it is sent to the warehouse. The goal of this evolution is to take out the links from the supply chain. This helps in optimizing the cost and builds a good relationship with the customers.

Innovative Uses of the Warehouse

Due to this shift, the manufacturers are eventually expanding the services that they expect from the warehouse 3pl providers. The manufacturers seek to improve inventory control, flexibility, streamline supply chain, and manage cost.

There are mainly three services in particular which are drawing substantial interest:

Shared Space

Companies that encounter promotional or seasonal fluctuations usually face exclusive warehouse challenges. They do not like investing in a space that they will not be able to use all the year round but they also have to accommodate the surging demand. This is when a shared space proves to be useful as it can cater to the shipping peaks by balancing the requirements of the manufacturers with some complementary surges.

In order to manage the arrangements, a 3pl business evaluates the space requirement of the shippers and thereby finds out the peak periods. If the shippers have peaked at the opposite time of the year then they can be paired in one facility.

The operations of the company are situated at the opposite end of the building and the ebb and flow in the center as per requirement. Each of the companies is offered additional overflow of space. However, they only pay for the space that is required. Thus, the manufacturers are able to meet optimum requirements without paying for permanent equipment and space. If you are able to locate the facility in an optimal location then it will help in minimizing transport cost.

Secondary Packing

Several manufacturers plan to bring functions like secondary packing close to the customer. This will offer the flexibility of accommodating the delay in the product configuration or seasonal fluctuations until the last minute for meeting the present requirement.

About 40% of the manufacturer is outsourcing its secondary packaging services. This will help in reducing cost and achieving flexibility. Secondary packaging will enable the manufacturer to meet the requirement of the customer cater to the requirement of the customer and augment their efficiency without even increasing the overhead cost. As a matter of fact, it can also reduce labor and transportation cost that is associated with the managing and carrying inventory.

Cross-Docking

Since the manufacturer looks for ways to move the products efficaciously, many are utilizing cross-docking. With the help of this, you can move the product directly from receiving to shipping. Thus, there is minimal or no handling at all. This takes the cost out of the supply chain and thereby accelerates the velocity of the inventory. This is beneficial for perishable, as well as high-value products.

20Cube provide superior warehousing services and have warehouses at different cities in India.

Demand for special warehouses is likely to increase in the future as the manufacturers will tend to focus on the core competencies. Luckily, third-party shipping companies like 20Cube will be able to provide a flexible and innovative solution for streamlining the supply chain and augment flexibility.

Post Author: 20Cube

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