E-Commerce Rise Shifting Demands to More Efficient 3PL Warehousing
E-commerce is a rapidly-advancing supply chain frontier, driving demand for well-placed public warehousing in Northeast Ohio. But simply providing empty space isn’t enough for many businesses. Effective third-party logistics (3PL) involves a trifecta of quality warehousing, shipping and fulfillment – and it all must be done from a strategically advantageous location.
3PL warehousing and distribution itself isn’t new. It’s a cornerstone business strategy that can streamline the flow of goods through the supply chain by helping you control costs, limit over-stocked inventory and arrange timely transportation. Whether you’re a small start-up company staking a presence or a large firm intent on seizing ripe opportunity in a new area, 3PL warehousing at On Time Delivery & Warehouse offers desirable options for smart scaling of your operations in Cleveland and beyond.
Our 3PL warehousing experts recognize the complexity of fluctuating logistics and will work to help you tailor a public warehousing and distribution plan that fits. Although many companies initially seek public warehousing as a short-term solution, these arrangements often turn into long-term relationships for On Time Delivery & Warehouse. Businesses find our 3PL warehousing and distribution services are not only convenient but key to their ongoing competitive edge.
Warehouse Growth Reflects E-Commerce Trends
CBRE, a research group based in Los Angeles, reported the average footprint of warehouses built in the U.S. has more than doubled since the early 2000s, with most sizable expansions noted in metro areas like Cleveland that have large populations coveted by online sellers and adequate land mass needed by developers. In Cincinnati, the average warehouse size has grown 237 percent in the last 15 years. In Chicago, it’s up 143 percent.
Companies that rely increasingly on e-commerce need not just extra floor space, but ceiling height for storage racks and conveyors. They also need a reliable 3PL warehouse team to quickly receive and break down shipments and prepare those goods for distribution. 3PL warehousing at On Time Delivery & Warehousing is sometimes the “last mile” in the delivery network, and other times a single stop in a longer supply chain. In both cases, efficiency is a top priority.
While e-commerce is undoubtedly on the rise, it still only accounts for 10 percent of retail sales, and at best about one-third of industrial property occupancy. The best 3PL warehousing providers are adopting smart growth measures to accommodate these changing needs, while also effectively continuing to manage those of conventional warehouse users.
When to Seek 3PL Warehousing Services
Generally, we recommend seeking 3PL warehousing and distribution services (as opposed to handling fulfillment orders on your own) when:
- You lack the infrastructure to keep pace with your growth.
- Your sales fluctuate (meaning it makes little sense to commit to running and staffing your own warehouse, whereas a 3PL can adapt to those needs).
- You’re too busy. Warehousing and distribution can quickly become a full-time job, and if it leaves you with little time to focus on business growth, it may be time to outsource.
These basic rules apply whether your focus is e-commerce or not. A knowledgeable, process-driven 3PL warehousing and distribution partner can be a key strategic partner, allowing you to best serve your customers.
If you have questions about Cleveland 3PL warehousing services, contact On Time Delivery & Warehouse by calling (440) 826-4630 or sending us an email.
E-Commerce Mania Spreads To Warehouse Market, Sept. 26, 2017, By Esther Fung, The Wall Street Journal
More Blog Entries:
On Time Delivery & Warehouse Ahead of the Curve in Cleveland 3PL Growth, Jan. 15, 2018, On Time Delivery & Warehouse 3PL Warehousing Blog