How a 3PL Can Help Reduce Your Cleveland Warehousing Costs
If you’re seeking affordable Cleveland warehousing space, you might consider teaming with a third-party logistics (3PL) company. Not only will a 3PL be more likely to have a central warehouse location in an increasingly competitive market, it can also handle receiving, storage, inventory control, and reverse logistics with optimal efficiency.
Warehousing is critical for moving goods safely through the supply chain. But warehouse space competition has dramatically impacted industrial rents over the last year. Retailers and logistics firms are routinely paying a premium to lock down the most advantageous spots. CBRE Group Inc. reports industrial rents in 58 U.S. markets were up almost 10 percent in the first five months of 2021 compared to last year. Demand was largely driven by the surge in e-commerce that occurred when pandemic-related lockdowns closed many storefronts, keeping people at home and shopping for goods online.
But even as restrictions have eased, the public and businesses have continued their online ordering habits – along with their expectations for next day or even same-day deliveries. CBRE estimates more than a quarter of all retail sales in the U.S. will be facilitated by e-commerce by 2025. Meanwhile, suppliers stung by the pandemic shortages are trying to guard against a similar scenario by ensuring they have enough on hand to meet a sudden demand spike. That inventory has to be safely stored somewhere – and ready to be moved at a moment’s notice. Select sites in regional hubs near highways and closer to final destinations can dramatically reduce transportation costs.
As the Wall Street Journal reports, this demand for warehousing is likely to create a similar situation to what we’ve seen with the housing market, with limited supply and fierce competition for warehouse properties in strategically key locations. But available spaces – particularly larger buildings with higher ceilings and ample parking lots near urban centers – have become more scarce in recent years.
For many Northeast Ohio companies, the expense of Cleveland warehousing is a considerable one when determining operating budgets. Prices can swing significantly, depending on the type of facility and services one needs. What we can confidently say is lots of businesses don’t require an entire warehouse dedicated solely to their operations. That’s why it often makes sense to partner with a 3PL, one with adequate space, value-added services and the best rates.
Benefits of a 3PL in Cleveland Warehousing
A third-party logistics firm with warehousing and distribution capabilities can help handle key components of your supply chain, helping you realize significant cost savings. Some examples of this include:
- Paying only for the space you need. If you have modest volumes, your costs should reflect that. If your sales start booming or you hit a peak season, you’re going to need more space and services. If you’re operating your own warehouse, you’re either stuck paying for unused space and resources or you risk having inadequate space and resources when your volumes rise. A public warehousing model used by our Cleveland warehousing team ensures you’re paying for what you’re getting in proportion to your needs.
- Reduced warehouse management costs. Ask any modern Cleveland warehousing operator: a warehouse management system (WMS) is essential to effectively manage inventory, facilitate shipments, pick and pack and all the other tasks for which your warehouse is responsible. If you work with a third-party warehousing provider, you don’t pick up the tab on that extra expenditure.
- Less money and time on rework. If you import a shipment that must be reworked and/or repackaged, you may have to ship it back to its origin. That’s going to cost you, and result in delays. However, if you work with a 3PL that offers contract packaging and repackaging, you may be able to get rework services performed quickly and cost-efficiently.
- Lower OTR miles with intermodal transport. Truck driver shortages have been reported as a major cause of shipping cost increases. If you work with a 3PL, we can help you formulate an intermodal transport plan that may allow for reduced reliance on trucking (and perhaps more on rail or other means) to transport goods.
- Cross docking to lower warehousing costs. Our 3PL offers cross docking, which is when goods are delivered to our loading dock, temporarily stored and then directly transferred to another truck. This means you can skip the cost of long-term warehousing and ensure distribution with minimal disruption.
- Reduce errors. Well-managed logistics are going to be critical to your success. But if that’s not your expertise, you can reduce the risk of costly errors by leaving the heavy lifting in that department to us.
If you have concerns about logistics and Cleveland warehousing costs, our team of experienced professionals offers custom quotes and advice on how to ensure you get the high-quality services you need at the best possible rates.
Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Warehouse Rents Surge on Bidding Wars for Scarce Space, June 22, 2021, By Jennifer Smith, The Wall Street Journal
More Blog Entries:
Cleveland 3PL Can Help With Supply Chain Optimization By Improving Inventory Accuracy, May 15, 2021, Cleveland Warehousing Blog