Why is a Warehousing Service Important in Logistics?
More than 31.7 million businesses in the United States utilize warehousing services to streamline their logistics, especially in cold storage. Warehousing supports production, and packaging, and offers hands-off processing, crucial for businesses aiming to meet the increasing consumer demand for fast and efficient delivery.
What Exactly Is Warehousing?
Warehousing is a crucial part of logistics, involving the process of storing inventory for sales or distribution of products. It typically takes place in a physical warehouse and acts as an intermediary between obtaining products and delivering them to customers. Warehousing services encompass storing goods, loading, packing, wrapping, distribution, sorting, and delivery.
Businesses that require products in bulk or have consistent orders can benefit from warehousing services. Beyond just storage, warehousing also involves stabilizing the prices of items and managing product inventory to reduce potential risks. Additionally, it can encompass the entire lifecycle of a business’s projects, including assembly in production processes.
Types of Warehousing Services
There are different types of warehouses meaning that warehouse services can cover a range of business types. That could include a warehouse that specializes in cold storage. This usually refers to any businesses that sell products such as perishable foods, medications, or vaccines. This could also include cosmetic products or live things such as plants. Another option could be on-demand storage. This particular type is an option that handles fluctuations in sales well.
It provides business owners with the opportunity to have more additional space than they might have considered needing. This is a good choice for pop-up or seasonal businesses. Let’s take a look at some of the other types of warehousing services that would be available to business owners.
Pick and Pack Warehouses
If you have an online store or are involved in e-commerce, this type of warehouse would be a reliable option. In these facilities, items are picked, packed, and then shipped. These warehouses are adaptable to operations for online stores as well as physical store locations. Typically, the business will work with the warehouse management staff. The facility will receive a list of the products that you offer, locate and pack those products, and then take care of everything else from labeling to shipping.
Distribution Center
A distribution or fulfillment center is a storage area that usually accommodates large inventories. These centers receive and then distribute that inventory to retailers all within a short timeframe.These options usually have very affordable payment methods with the option to rent space a lot of the time. These facilities usually operate at a very fast pace and handle the export of products in small delivery windows such as 24 hours.
Bonded Warehouses
Bonded warehouses handle imported goods. These types of warehouses are the middleman between obtaining the product, getting them to customs, and then receiving the product. For any business involved in the manufacturing of imported goods, a bonded warehouse would be the best option.
Smart Storage Options
Smart storage options are exactly as they sound. The fulfillment and management sources are usually run through AI technology. These types of warehouses are more appropriate for businesses that need packing, storage options, supply chain management, and transporting assistance for technology-based products. The good thing about these options is that the chance for human error is significantly less than in other cold storage warehouse choices. It is also a good way to get fast fulfillment and streamlined management.
Public Warehouses
A public warehouse is owned by a government entity and is available to be used by companies within the private sector. The good thing about public warehouses is that they can be used for business purposes as well as for personal reasons. The only downfall to using a public warehouse is that they aren’t as technologically advanced in their design. This makes it difficult to find accessible options that meet a lot of different business types.
Private Warehouses
Private warehouses, owned by manufacturers or distributors, are common for growing e-commerce businesses. They are good for long-term plans and offer better cold chain logistics, but are more expensive. Another option is cross-docking, which involves minimal storage and is suitable for high-volume goods.
The Benefits of a Warehousing Service
Using a warehouse service offers numerous benefits for logistics management. It not only reduces delivery times but also provides cost-effective fulfillment solutions, easing the burden on operational teams. Outsourcing specific warehousing needs, such as cold storage that includes packaging, processing, and fulfillment, simplifies managing logistics.
Inventory management becomes more straightforward, enhancing overall efficiency and productivity, and allowing for quicker inventory turnover. This leads to improved customer satisfaction and better access to products. Additionally, utilizing U.S. cold storage solutions can further benefit businesses by:
- Expanding storage capacity
- Consolidating general operations
- Enhancing inventory management processes
- Maintaining the availability of in-demand products
- Ensuring consistent supply and management of goods
- Avoiding stock shortages
- Reducing order delays
- Saving time and money
Additional Benefits of a Warehousing Service
Warehousing services can increase your capacity and give you more control over your supply chain. They also help generate additional revenue by utilizing your own space. These services store the products you sell, eliminating the need to purchase extra space.
This approach frees up your capital for other uses and saves money. It also reduces the risks businesses face, such as the potential for damaged goods.
By minimizing these risks, you enhance the quality of your manufacturing and storage processes. This improvement can lead to fewer returns, which means less money lost.
How a Warehousing Service Can Improve Your Logistics
The best way to achieve better logistics is to outsource parts of your supply chain. This is a good way to free up the strain that a small business may have accumulated. Doing this will leave you with more time to focus on other aspects of your business.
Stronger Supply Chain
A strong supply chain is the backbone of your business. A third-party warehousing service can help you improve your supply chain by improving delivery times, the time between packing and shipment, etc.
These services can also provide reliable transportation options and sophisticated logistics software, which can help you manage the flow of goods.
Better Customer Service
A more efficient supply chain, combined with better customer service, will help you increase your sales. Keep in mind that this is an aspect of your business that you would be outsourcing. Timely and accurate delivery service is essential for keeping customers satisfied. This can also help to encourage customers to purchase from you again.
More Time to Focus on Other Parts of the Business
By outsourcing parts of your supply chain, you will be able to create more opportunities. For example, You can put more attention toward marketing, sales, and product development. This is a good tactic for any sized business.
Why a Warehousing Service Should Be a Part of Your Cold Storage Logistics
Warehousing services will ensure that your goods are delivered on time and that you can offer the best customer service. It will help you strengthen your supply chain and improve your logistics as a whole. With the general difficulty of freight logistics and how complicated the processes can become on even a small or medium-sized business, these services can create a variety of opportunities. This is one of the main reasons why many companies are turning to third-party warehousing services. Often, companies will outsource warehouse services to an expert organization that can deal with their logistics competently, while saving them time and money.
Find the Solution That Works for Your Business
If you need better options for cold storage logistics, working with EVO Logistics offers ways to make things a bit more hands-off for businesses. With a focus on fast and timely delivery along with GPS traceability, we work to provide consistent satisfaction to our customers.
Interested in learning how to optimize the way you run your business? Reach out to our team today to see which of our services offerings suits your business best.
