Businesses of all sizes have struggled with supply chain instability the last few years. It’s considered the No. 2 concern, just after finding and retaining qualified, reliable workers. Girding themselves for more supply chain volatility on the horizon, many mid-sized companies are strategically stockpiling inventory, allocating more funds to ensure timely deliveries, and onboarding software that allows for greater transparency. These are smart tactics for Northeast Ohio businesses – and can all be successfully implemented by teaming with a dedicated Cleveland 3PL (third-party logistics) warehousing and distribution partner.
According to the recently-released 2022 Business Leaders Outlook Survey, conducted by JPMorgan Chase, the majority of mid-size company leaders appear to be shifting from a small-business mindset to a larger one in an effort to stay competitive in the global economy. To maximize their competitive edge, more than half of respondent companies (with annual revenues ranging between $20 million and $500 million) were adding suppliers from new areas as well as dedicating more capital to higher shipping and delivery costs. One-third were changing materials or manufacturing processes, and some had even stopped working with some suppliers altogether.
More than 80 percent of firms said they had to increase wages in order to recruit and retain workers. This is a particular challenge for companies managing their own warehousing and logistics in-house – further highlighting the benefits of working with an established Cleveland 3PL.
Other top concerns for companies looking ahead this year are difficulties with forecasting, customer demands for lower costs, customer demands for reduced response times, and overall rising expectations for customer service. Well over half of companies queried are actively investing in inventory & network optimization.
As an experienced team of third-party logistics professionals, we recognize that while many businesses stress over supply chain operations, the consumer-driven approach does open the door for innovation opportunities. Running an efficient, cost-effective operation has always been a challenge – and it’s one that Ohio 3PL operators are uniquely equipped to help resolve. Among the top concerns we help clients address with Cleveland 3PL services:
If you’re among the millions of Americans who have recently launched a new business this year, let us be among the first to congratulate you! U.S. Census data indicates that the surge of new enterprises contains a significant number of manufacturing and retail companies. All startups (but those in these areas in particular) should look closely at the benefits of partnering with a trusted Cleveland 3PL (third-party logistics) company. A 3PL can assist with optimizing inventory management, warehousing, scalability, simplification, shipments, transparency, customer satisfaction reviews, and cost savings.
Outsourcing shipping, warehousing, and order fulfillment with a third-party logistics firm is something burgeoning business owners sometimes overlook in the early phases, primarily because many are cash-strapped and looking for any and all opportunities to save capital. However, smart entrepreneurs recognize that certain expenses are well worth the investment. Many new (and veteran) Northeast Ohio business owners see substantial benefits working with a trusted Cleveland 3PL, often right out of the gate. In fact, some operators find they can’t effectively compete in the market without one.
What Does a Cleveland 3PL Partner Do, Exactly?
Third-party logistics companies manage your supply chain operations, including warehousing and shipping. In short, our job is ensuring your products make it to your business partners/customers – intact, on time, every time.
We help facilitate the receiving, picking, warehousing, packing, and shipping. On Time Delivery & Warehouse goes above and beyond the typical storage space operation to provide:
- Heated warehousing.
- FDA registered warehousing.
- Container Freight Station (CFS).
- Centralized Examination Station (CMS).
- Import/export freight handlers.
- Product coding & packing.
- Daily, weekly, monthly, and annual storage rates.
- Bill of lading preparation.
- UPS Standard daily.
- On-site security.
- Domestic freight handlers.
- Hazmat certification.
- Hot shot services.
- Liftgate deliveries.
- Same-day & next-day delivery services.
If we don’t offer the exact services you’re seeking, we’ll point you to another trusted local provider who can.
Why Logistics Are an Important Consideration for Brand New Businesses
Very few startups have experience in logistics. This is problematic because it can impact how quickly the right goods get to the correct destination, unblemished and exactly when they’re supposed to.
Our goal as 3PL providers is to ensure your supply chain is working for you and your customers from Day 1.
Cleveland truckload carriers moving full trailers have been in especially high demand in recent months, thanks to persistent West Coast supply chain bottlenecks. The Wall Street Journal reports indicators from bellwether transport services foreshadow the likelihood these western port backlogs will drag through the holidays and into 2022. Suppliers and shippers looking to keep down costs may want to consider working with a dedicated 3PL trucking logistics service.
Part of the issue with higher costs is the rush by large retailers to restock inventory (with demand in some sectors up as much as 85 percent this year compared to the same time in 2020). Also factoring are the broader supply chain upheavals affecting the whole country – primarily, shortages of truck drivers, rail workers, and warehousing employees.
Keeping freight and trucking costs down while maintaining efficient logistics operations isn’t a cakewalk, especially when the labor force has been so limited. Meanwhile, consumers are leaning on e-commerce now more than ever, with few sacrificing expectations – including on costs and delivery times.
As longtime Cleveland truckload carriers and warehousing professionals, we understand these challenges and work closely with our customers to help tackle them. Key to our longevity are competitive pricing and low staff turnover, the latter fueled by good pay, attractive benefits packages, and a perpetually positive work environment. Loyal, experienced truck drivers and warehouse workers help us keep customers’ inventory moving as efficiently as possible for the best rates.
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.
Supply chain optimization is all about getting customers what they want, when they want it and spending the least of money possible to do so. However, if your inventory is inaccurate, there will come a time that a warehouse worker will go to pick a SKU for an order, and it won’t be there – or there won’t be enough. Working with a dedicated Cleveland 3PL helps ensure that you aren’t losing time and money to avoidable inventory inaccuracies.
Third party logistics providers (3PLs) like On Time Delivery & Warehouse continually evolve their service offerings, not only to set ourselves apart in the marketplace, but also to meet increasingly rigorous customer demands. 3PL operator customers trust us to manage numerous functions, including warehousing, trucking and overall supply chain optimization and management.
As noted by research published in the International Journal of Recent Research in Commerce Economics and Management, outsourcing inventory management allows a company to:
- Maintain their focus on core competencies.
- Broaden competitive advantages.
- Enhance differentiation in the marketplace.
- Avoid outlying, resource-intensive tasks.
- Reduce logistics and carrying costs.
Working with a Cleveland 3PL provider that can capably manage inventory means entrusting the company’s most valuable assets to a third party. But this also assures peace of mind. They likely recognize that poor inventory management is the root of many operational problems, missed sales, lost time to perform reconciliation and shrinkage. That means it must be given high priority. Doing so, however, is a significant challenge, particularly when the company is responsible for maintaining numerous items of inventory for multiple clients in the same place. A third-party logistics provider already has the resources and experience with best practices.
Some of the factors that result in inventory inaccuracy include:
- Poor store records or documentation.
- Manual documentation and records posting, leading to long processing times and increased odds of misplacing figures or making a recording mistake.
- Keeping inventory in the wrong place.
- Errors in inventory transaction.
- Physical inventory is either stolen, damaged, expired or spoiled.
Winter weather can make even the most trivial tasks exponentially more difficult. As recent events have proven, this is especially true when power lines (or entire power grids) are down, rail services have ground to a halt, natural gas is in short supply, hundreds of flights are canceled and icy roads are exceedingly perilous. All of this will have a snowball effect on your supply chain. While there’s no way to control the weather, working with a Cleveland 3PL can help you better insulate your supply chain for the inevitable moments when you won’t have control.
As in sports, the best defense is a good offense when it comes to supply chains. Ideally, you will have planned and prepared for supply chain setbacks. As a longtime Cleveland 3PL, we have trucking, warehousing and shipping partners all over the country, allowing you to navigate more nimbly through some of the most serious seasonal swings and challenges.
In third-party logistics, our success depends on your success. We’ll only recommend actions that are in your best interest. Some of the top ways you may benefit from a 3PL partnership in advance of a weather crisis:
As a long-time 3PL firm and provider of Cleveland last-mile delivery services, we understand the important role logistics plays in getting products where they need to go – intact and on time. When logistics aren’t effectively coordinated, communication and visibility suffer and bottlenecks and delays become inevitable. This was illustrated recently in early efforts to distribute newly-available COVID-19 vaccines.
We should start by saying this was never going to be a perfect process because of the scale, limited supply, outsized demand and sheer number of stakeholders. But it was largely presumed the rollout wouldn’t be overly-taxing on U.S. transportation capacity. So why the many roadblocks? And what can businesses learn from it?
It’s possible supply chain inefficiencies in some states could be partially addressed with expanded trucking capacity. But complex storage, handling and administration requirements were an undeniable part of the equation. Beyond that though, it does seem the trouble broadly has been less in getting available vaccines from manufacturers to the states and more with logistical struggles in facilitating last-mile deliveries.
This is unsurprising because, as any 3PL service provider knows, last-mile deliveries are often the trickiest. This is true whether we’re talking about airplane parts or toilet paper or medicine. It didn’t help that this was essentially a massive, brand new supply chain with untested routes and logistics coordination.
The takeaway for businesses is that no matter what your industry, it’s imperative that your Cleveland last-mile delivery 3PL service be one with extensive experience, established routes, top-tier technology and trusted supply chain partners.
Same-day delivery and next-day delivery are part of our Cleveland 3PL wheelhouse. These services keep customers happy, but they have become especially important in the midst of a dramatic shift toward e-commerce this year.
As TechCrunch recently reported, the COVID-19 pandemic accelerated the shift away from physical stores and pushed the e-commerce ahead by a full five years. This change has been on the horizon for years, but e-commerce is projected to grow by a stunning 20 percent in 2020.
This latest report, IBM’s U.S. Retail Index, reveals what our Cleveland 3PL has been preaching for years: Retailers, manufacturers and business-to-business operators are going to need to pivot more quickly multiple outlet fulfillment capabilities if they want to stay competitive. This means prioritizing same-day delivery and next-day delivery services.
Simply put, a supply chain is a network between a business and its suppliers to produce, process, store and distribute goods. A supply chain involves people, technology, information, activities, resources and organizations. It incorporates every step necessary to get that product to its final destination. To meet consumer expectations, your supply chain needs to be efficient and error-free. Currently, one of the biggest challenges is the increasing complexity of supply chains. Working with a 3PL (third-party logistics provider) like On Time Delivery & Warehouse can help you overcome supply chain complexities to ensure your items are moved quickly, safely and seamlessly.
Complexities in modern supply chains are largely attributed to a continually growing number of products, customers, channels and geographies. Research by Gartner found that supply chain complexity is a top concern of CEOs, with more than 60 percent of supply chain leaders reporting it poses one of the highest risks to business continuity.
One of the best ways to boost supply chain efficiency – and reduce your costs – is to optimize your warehousing options. On Time Delivery & Warehouse offers Cleveland 3PL warehousing services that are optimized, streamlined and tailored to meet your needs.
Warehouse optimization is a process by which we use the time, space and resources in our warehouse as efficiently as possible through careful planning, automation and improvements in customer experience and satisfaction.
We recognize that the drive for low-cost sourcing, outsourcing, customization and globalization can result in substantial complexities in a supply chain. Companies cannot afford to gloss over warehousing optimization – especially when a single mistake or delay could impact your business’s reputation and revenue stream.
E-commerce has completely upended virtually every supply chain, not only with respect to how customers find what they want but also how those goods make it to customers. Warehousing and fulfillment has largely become decentralized to meet last-mile delivery needs. Cost effective, timely solutions are in demand. Our Cleveland 3PL warehousing team delivers.