Cleveland warehousing

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.

Cleveland warehouse

Our Cleveland Warehouse Prepared to Weather Coronavirus

We live in a world that is interconnected. Substantial disruptions in supply chains highlight the need for resiliency, particularly from Cleveland warehouse and logistics firms. On Time Delivery and Warehouse has proven over 40 years our ability to adapt in dynamic and uncertain markets.

Although the COVID-19 pandemic has presented numerous challenges, we are helping many businesses find workarounds with e-commerce and local distribution. Although there is likely to be a fair amount of volatility in the supply chain for some time, our Cleveland warehouse and logistics will help our clients navigate these new realities.

We anticipate seeing:

  • Higher inventory levels.
  • Continued e-commerce adoption.
  • Diversification of manufacturer locations.

No matter what challenges confront our Cleveland warehouse team, we are here for our customers, and ready to face it.

Cleveland Warehouse & Supply Chain Trends

In general, supply chain managers often prefer to keep inventory levels low to reduce overall costs. However, as we’re seeing shortages of things like cleaning supplies, health products and food, those managing supply chains are rethinking optimal inventory levels and storage locations. We’re anticipating higher demand for warehouse space to handle the uptick in goods and services. Ultimately, we anticipate this is likely to help us improve resiliency against future shocks.

Although the impact of COVID-19 is arguably one of the most substantial we can recall, the fact is that within this industry, our Cleveland warehouse team is familiar with fluctuations in stockpiles and slowdowns.

Inventory is backlogged at the moment, but supply chains and consumer demand will ultimately normalize. We do still anticipate warehouse services will remain in high demand as many buyers practice “social distancing” by avoiding stores and shopping online. It’s unclear how long this will last, but a growing number of brick-and-mortar locations are closing, either by choice or public health order.
Some shipping companies are looking at reducing or at least reconsidering their total logistics footprint, but that doesn’t necessarily mean they’re looking at closing shop. Many are instead weighing more regionalized approaches that might offer improved flexibility, particularly those that can offer proximity to urban centers, like Cleveland. This can help better protect numerous supply chains from market disruptions.
Many shippers are looking at ramping up productivity while also focusing their efforts on adjacent or near-adjacent manufacturing centers. Some are even looking at reshoring to bring production closer to home, at least for the time being.
It’s probable too that not only in the immediate future, but over the next several years, we’ll see an uptick in demand for online grocery that will lead to the need for millions more square feet of cold storage warehouse space.
Meanwhile, there have been several disruptions in transportation, such as closed rest stops and restaurants along key corridors. Our trucking services have been managing those challenges also. Receivers and other distribution centers are asking to conduct as much business as possible electronically or without personal contact. Our team recognizes the importance of taking public health official directives seriously and implementing them immediately, keeping our team – and yours – safe and healthy.
The bottom line is that we know many businesses are doing what they can to mitigate the damage and risk of further disruption in uncertain weeks and months ahead. We’re all in this together, and our Cleveland warehouse crew is here to help. 

If you have questions about our Cleveland warehouse services, contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.

Additional Resources:

Warehousing sector well-positioned to whether coronavirus disruption, report finds, March 17, 2020, By Morgan Forde, SupplyChainDive.com

More Blog Entries:

Cleveland 3PL Can Help Limit Coronavirus Supply Chain Impact, Feb. 18, 2020, Cleveland Warehouse Service Blog