Cleveland warehousing is an element of operations that many small businesses in Northeast Ohio cannot afford to overlook if they manufacture, export, or transport goods in any capacity.
Although many companies will try to manage their own warehouse duties in-house, doing so efficiently can quickly become all-consuming – and close to impossible. That’s why many businesses ultimately end up outsourcing Cleveland warehousing functions to a third-party logistics provider.
What makes some firms reticent to take the first step on the initial investment is the cost. But in the end, outsourcing Cleveland warehousing functions has proven time and again to boost productivity, improve on-time-deliveries and customer satisfaction, and save money.
The customer’s journey isn’t over once the order is placed. Working with a dedicated 3PL warehouse provides you with greater transparency and control to ensure customers receive their products intact and on-time – and to promptly notify them of any issues if that isn’t going to be the case.
Benefits of Partnering with a 3PL for Cleveland Warehousing
If you’re considering a warehouse partnership with a third-party logistics firm, it’s important to go into it knowing what you hope to gain. Some of the top benefits that our Cleveland warehousing customers have identified as holding the most value:
- Improved inventory management. It’s estimated that 8 percent of small businesses fail to track their inventory. Stunningly, nearly a quarter don’t maintain inventory at all. In effect, order processing and shipments may be delayed, resulting in poor customer experience. When you have a centrally-located warehouse that is dialed in with freight logistics capabilities, it becomes easier to track, manage, and ship your inventory. You’ll have the advantage of low-stock alerts well in advance of when you’re potentially risking running out. This will also allow you to give customers potential alternatives, as opposed to simply keeping them waiting in the dark.
- Efficient packing and processing. A solid warehousing partner goes beyond simply storing your goods. It has the supplies, the equipment, and the staff to move, package, and process your orders. Pallet racks, packing materials, loading docks – these are just a few examples of what a third-party warehouse may be able to offer.
- First-rate customer service. According to RetailDive.com, nearly 65 percent of online shoppers expect their free shipping order to arrive within three business days. At the very least, there is an expectation that customers know – and be kept updated about – the estimated or guaranteed delivery time. Nearly 90 percent are willing to pay more to ensure faster delivery. The speed of delivery is sometimes the No. 1 thing buyers consider when deciding their shipping method. So as a business owner, this is something you must take seriously. If you fail to deliver orders on time, your reputation can tank and you may hemorrhage customers. When you’re working with an experienced warehousing partner, you can arrange for optimized distribution and timely delivery. This reduces errors and potential product damage during the order fulfillment process. Warehouses can also help keep your goods safe and secure, reducing the odds items will get lost or stolen during handling.
- Price stabilization. There are lots of factors that can influence the price of a product from month to month or year after year. Warehousing does provide some opportunity for price stability, though, because it allows businesses to store goods for a later date, when demand may be higher. Consistent stock levels can help ensure you can offer consistent prices to your clientele.
- Better risk management. In addition to serving as a buffer from wild pricing swings, warehousing can offer risk management services that will minimize your losses due to improper storage, packing, and deliveries. Goods that are properly packed, stored, sorted, and picked will have a longer shelf life, which means you aren’t losing product unnecessarily.
If you are looking for a warehousing and logistics partner in Northeast Ohio, On Time Delivery & Warehouse has a reputation as a leader in the field. Our customers trust us to provide quality warehousing services, inventory tracking, and distribution – so that your goods make it to their destination intact, on time, every time.
For information on 3PL Warehousing and Inventory Management Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Peak shipping season ahead of the holidays is about to begin for a volatile supply chain, July 29, 2022, By Lori Ann LaRocco, CNBC
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Federal Shipping Reform Impact to Cleveland Warehousing, Trucking, June 20, 2022, Ohio Warehousing Blog
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.
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, – particularly 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.