How to Navigate Warehouse Shortage

Jan 6, 2023Uncategorized

From utilizing virtual settings to recognizing the important work our front-line service workers dedicated themselves to daily, the world has changed since the pandemic in 2020. Now more than ever, individuals are learning to adapt to difficulties one resolution at a time. A growing concern in the industry that proprietors face across the United States is the increasing shortage of industrial and commercial warehouse spaces. As the pandemic fueled unprecedented growth in online shopping, there is a rising demand for housing spaces for order fulfillment.   

This ever-growing issue is detrimental to the success of the supply chain as it puts owners in the position to, unfortunately, break promises with customers and possibly end up losing their trust. Luckily, there are steps you can take to be prepared to navigate this shortage. 

Understanding Space Logistics

Warehouse space logistics is transporting goods and information to, from, and within warehouse and distribution centers. In other words, it is receiving, storing, sorting, and shipping warehouse goods. Understanding space logistics is essential because how you transport, store, and distribute your materials and products impact your reputation, operations efficiency, and ability to be resilient throughout difficult times. As warehouse space is decreasing due to higher demands, suppliers are hoarding spaces, even if they do not have the goods to fill them; thus, one must know what moves are especially important to keep their business afloat. 

Investing in a 3PL

The term 3PL refers to a third-party logistics company. When you need to hold excess inventory to fulfill orders but can’t afford the means to do so or can’t find the space to house it, 3PLs are your saving grace. There are a plethora of benefits to using this type of service. 

Lower Expenses

Using 3PLs, logistics costs are reduced without cutting back on operations. They can perform the tasks of identifying and filling gaps in your supply chain. These companies specializing in logistics have exclusive relationships with the logistics sectors and can have greater influence during negotiations. They can, in turn, grant operators the opportunity to minimize overhead costs. Similarly, they help with reducing labor, equipment, distance, and time requirements. This advantage allows operators to focus on other crucial aspects of their corporation. 

Access to Experts

Third-party logistic companies understand firsthand the complexities that come with warehousing. Thus they serve as great potential business partners as they have extensive expertise and knowledge of the industry. Their professional team members are always updated on the latest industry trends within the community. 3PLs allow operators to get rid of the hassle of managing all of their logistical pain points and put that task into the hands of highly skilled and trained professionals to handle the situation. 

Customizable Plan
By choosing the right 3PL for your business, you will have access to a service that will be able to design a plan specific to your needs. Here at Warehousing It, we have plenty of solutions to help your company’s needs. With multiple establishments across the country, we guarantee we will be able to help mitigate your logistical concerns no matter where you are located. So, feel free to complete our comprehensive online request, and a team member will get in touch with you soon!

Vertical Integration

The direct antithesis to implementing third-party logistics as a strategy against the warehousing shortage crisis is vertical integration. Vertical integration is the process by which one company handles multiple aspects without relying on other businesses. Amazon is an excellent example of this as they market, provide, and distribute their goods to over 200 million subscribers worldwide. 

Vertical integration acts as a way to drastically reduce costs and helps the company control various aspects of its production. By cutting costs down, you’ll have more revenue towards finding the necessary warehouse space or ultimately implementing a 3PL strategy. 

Make the Right Move

Investing in a 3PL is a venture worth looking into. These trained professionals offer a host of great benefits that allow you to be flexible without reducing the quality of the service. Not to mention, vertical integration puts you in the driver’s seat. You are in complete control of the way your production operates. In order to be ahead of the game, we encourage you to look into these solutions in advance. Now more than ever, it is important to be prepared for what lies ahead.

Author: warehousingit

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