Ohio warehousing & distribution

Outsourcing Ohio Warehousing & Distribution Saves Dollars, Makes Sense

In recent months, logistics industry watchers have seen demand for warehousing close to major ports surge, driven by the tsunami of e-commerce demand and flood of container imports. That’s made it tougher – and more expensive – to find storage space from New York to Los Angeles. Bloomberg reports these demands are unlikely to abate anytime before next year, at the earliest. The good news is many companies may find solutions in working with Ohio warehousing & distribution firms that are strategically located and connected.

Both logistics service providers and real estate companies were quoted by The Wall Street Journal as saying the fierce competition for warehousing space near port cities has pushed warehouse costs so high that many companies have been compelled to scour neighboring regions (including in the Midwest) to serve shippers’ needs. Northeast Ohio has long been a prime, strategic hub for warehousing and distribution.

The demand for industrial space – inland and around the ports – is likely only to rise in the coming years. Nationally, it’s accelerated the last few years thanks to the rapid rise of e-commerce, which relies more heavily on Ohio warehousing and distribution versus retail space. Storage space rates in some regions have doubled just in the last year. The pandemic exacerbated that trend, and shows no signs of abating.

If your current, in-house Ohio warehousing and distribution practices are already taxing your time and resources, it may be time to take another look at outsourcing with a Cleveland 3PL. “3PL” stands for “third party logistics.” A dedicated 3PL warehousing provider does more than simply give you a place to store your stuff. It offers opportunity for dynamic companies to access a broad range of supply chain & logistics services and expertise.

Ohio warehousing

Top 5 Ohio Warehousing Impacts of E-Commerce

Storage demand fluctuations are nothing new to the Ohio warehousing industry, though this year has certainly tested the limits. Demand for nonessential goods and same-day deliveries swung wildly throughout 2020, in part reflecting a sharp rise in e-commerce, something Northeast Ohio warehousing operations felt acutely.

Our hats are off to our various supply chain partners and warehouse workers who quickly adapted to the strict requirements and regulations of numerous new industry priorities driven by consumer needs. With distribution bottlenecked at several points during various times, our warehouse employees adroitly rose to the challenge, Рparticularly when it came to compressed sales cycles  of goods that had to be swiftly and carefully offloaded from ports and trucks and properly consolidated, sorted, packaged, stored and transloaded.

The U.S. Census Bureau reports e-commerce activity spiked dramatically in the second quarter of this year as many consumers shifted their shopping practices away from physical stores and over to digital platforms. Demand for dipped, while the home improvement and technology sectors boomed. U.S. retail e-commerce increased 44.5 percent year-over-year, ultimately resulting in 2.4 million additional square feet of warehousing space, many of those dedicated to business-to-business (B2B) operations.