Modern warehousing in the United States is no longer simply about a secure place to store your stuff. That’s important too, of course. But increasingly, businesses are looking for warehouses also capable of offering highly-competent and comprehensive logistics services. Exact preferences hinge on specific customer needs, but many are opting for a 4pl warehouse partner who provides the whole package: Expert logistics strategists skilled at successful integration, oversight and management of an entire supply chain.

4pl warehousing is more involved than a 3pl warehouse, the latter of which offers add-on services like inventory management, consolidation, kitting, crating, picking, packing and transportation – but is not actively involved in overseeing a company’s entire supply chain.

As a Cleveland 4pl warehouse partner, On Time Delivery & Warehouse takes the lead on logistics. We handle all the activities and services of a typical 3pl warehouse – then go the extra mile to give customers strategic insight and direction to optimize supply chain operations. Our logistics teams keep a close eye on efficiencies and inefficiencies, flag slowdowns and bottlenecks, identify patterns in demand surges, and pinpoint optimal modes, routes, and carriers to ensure goods get from A to Z – intact, on time, every time.

4PL Warehouse Service Demand Surge

One analysis by DataHorrizon put the 4pl warehouse and logistics market size at around $63 billion as of 2022 – a figure that is expected to double by 2032. Reasons for this anticipated rapid growth are largely rooted in the reality that to effectively leverage complex global supply chains for maximum cost benefit and time efficiency (particularly in light of consumers’ rigid expectations for fast shipping), companies must prioritize logistics.

Evolving technology is driving a lot of innovation on this front. The most in-demand 4pl warehouses are those investing in transportation management systems, warehouse management systems, and enterprise resource planning systems.

These can include cloud computing, artificial intelligence, and internet of things (IOT) devices (for gathering and exchanging real-time data). Protection of customers’ data and privacy through robust security controls is also important. When all of this comes as part of the package of working with a 4pl warehouse, it makes for an attractive option for companies that could benefit from a more efficient supply chain but also need to focus internal efforts on core competencies.

Truth is, MOST small-to-medium-sized businesses simply lack the capacity to take on logistics in-house while also ensuring their products and services are the best they can be. Even a lot of large companies find it isn’t worth their time when they can team up with a 4pl offering turnkey services. 4pl warehouse customers are often:

• Multinational corporations
• E-commerce businesses
• Manufacturers
• Retailers
• Larger companies with complex, global supply chains

For instance, U.S. goods imports from China totaled more than $536 billion in 2022 – a 26 percent rise since 2012. Companies in the states get a lot of value from these partnerships. But it’s one thing to rely on goods from China. It’s an entirely different thing to establish, oversee, and streamline the movement of those goods through major Chinese ports, such as:

• The Port of Shanghai (in each of the 3 terminals, Yangshan, Wusongkou, and Waigaoqiao)
• Ningbo-Zhoushan Port
• Port of Shenzhen
• Port of Quingdao
• Port of Tianjin
• Port of Guanzhou Harbour

Working with a 4pl warehouse partner like On Time Delivery & Warehouse gets you the benefit of having many of these connections, routes, and compliance processes already in place.

Interested in our 4pl warehouse Cleveland, Ohio services? Request a Quote today!

Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.

Additional Resources:

Logistics: To insource or outsource? Feb. 4, 2020, Supply Chain Dive

More Blog Entries:

Ways a Customs Bonded Warehouse Boosts Your Company’s Bottom Line, Feb. 15, 2024, Cleveland 4PL Warehouse Blog