Prologis Inc’s recent $12.6 billion acquisition of Liberty Property Trust’s logistics space says it all: warehousing is big business, driven by the unstoppable growth of global ecommerce. Not only is warehouse space in high demand across the world, but specialist warehousing service providers are dealing with expanding client lists too. Warehousing, stock control and distribution are integral to third party logistics (3PL) – a huge international industry that was recently valued at nearly $727 billion.
Why are smart business owners outsourcing their warehousing operations, and what are the benefits in doing so?
Leave it to the experts
The first and clearest benefit is that you will be leaving the enormous and complex task in the hands of experts. For most entrepreneurs, the supply chain is not their principal area of expertise; the processes become progressively harder as their company grows and can eventually swamp the business.
A 3PL provider and warehousing expert will have the necessary industry knowledge, the technology, the skilled staff and, most importantly, the actual warehousing facilities to ensure high-level operation.
This is the difference between serving the customer and losing them: your service provider will work hard to retain your business by providing a streamlined, problem-free consumer experience. Furthermore, by outsourcing your warehousing operations and stock control, you reduce your risks as the company will assume responsibility of people, processes and stock.
This leads to another essential benefit: saving time. If you are not in the warehousing business, then why waste time trying to become an expert at it? Ambitious entrepreneurs invariably pass the arduous task to someone else so that they can focus on their core business. Concentrating on warehousing and stock control soaks up precious time and causes unnecessary stress, especially when you want to scale up operations.
Outsource warehousing and attend to growing your brand instead.
Adding value to your business
Companies who outsource warehousing can expect significant cost savings too, not only because they’ve spared themselves the massive initial outlay of building a warehouse and the necessary infrastructure that comes with it.
Furthermore, you can free yourself from the costs of maintaining and servicing warehouse space on a regular basis if you outsource. You’ll also save on the costs of equipping your warehouse with everything from pallet racking to forklift trucks.
Relating to this, your company may not be positioned in an area that is easily accessible nor ideally located for international distribution. This results in lost time and increased fuel costs as you try to make the most of your situation and improve your logistics. Most warehousing and distribution providers are located close to major highways, railroads and ports.
A good third-party warehousing specialist will add further value by offering full KPI reporting and forecast management, as well as great technological solutions so they are always on top of your stock. This means products reach your customers in the quickest, safest and most efficient way.
When it comes to choosing your warehousing partner, make sure you only go with experts with a global reputation who can provide the best services to enhance your business.
Sprint Logistics is an international logistics solutions company providing worldwide supply chain, distribution, fulfilment and warehousing services to a vast range of businesses. Our extensive warehousing network, supported by our innovative stock control system, means we have storage across Europe, the US and the Middle East, so we are able to deliver your stock wherever and whenever you need it.
To discuss your warehousing requirements, simply contact us today.