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Warehouse Logistics: What is it and the Benefits?

What is Warehouse Logistics?

In order to quickly get your products to end users, whether in B2B or B2C situations, it’s important to work as efficiently as possible. For best results, you’ll need to keep logistics top of mind. This typically means harnessing third-party or 3PL logistics services providers, to assist you in establishing and maintaining your warehousing, distribution and fulfillment capacity.

Many companies, seeking to operate as nimbly as possible, will utilize one warehouse for all different business functions, such as D2C Fulfillment and Retail fulfillment. This will result in cost savings through fulfillment and overall less inventory on hand.

Of course, to get the most out of your distribution channels, you need to understand the basic differences between logistics and managing your supply chain.

Warehouse Logistics vs Supply Chain Management

You should know that warehouse logistics has to do with your company getting the correct units to the right customers, on time, based on incoming orders.

On the other hand, industry experts refer to “supply chain management” as the process of producing or sourcing items and delivering them, while also being prepared to address any returns, such as due to customer dissatisfaction or government-mandated product recalls.

You can depend on us for Supply Chain Management, as it’s an all-encompassing effort of our staff.

Businesses in Need of Warehouse Logistics Services

A variety of businesses of all sizes and types need professional warehouse logistics services, including:

  • Automotive
  • Consumer Goods
  • Education
  • Electronics
  • Food
  • Manufacturers
  • Medical manufacturers
  • Pharmaceuticals
  • Restaurants
  • Retailers
  • Transportation
  • And more

This list is meant to convey a general sense of organizations’ basic needs for logistics services. Indeed, there are many use-case scenarios for different types of businesses. If you don’t see your business type listed here, please contact us for details on how we can be of assistance in your niche.

Benefits of Warehouse Logistics for Your Business

You and your associates can make the case for working with warehouse logistics professionals by considering the following chief advantages they can bring to your business:

1. Inventory Management: 3PL experts at the warehouse will look after your company’s current inventory levels using automated systems that are essential for determining future demand. For example, you do the majority of your business during the December holidays, or you are launching a new product marketing campaign and want to be prepared to handle a sudden influx of orders.

2. Optimized Space Utilization: Warehouse experts have the experience and knowledge to use space the most efficiently to store products and make them readily available for picking and packing duties.

warehousing and inventory management

In contrast, your own company may not have the same expertise in getting the most out of precious warehouse storage.

3. Reduced Operating Costs: Efficiencies at scale enable you to do more with fewer resources (money and labor), so you can anticipate higher profits while fulfilling the same level of orders to your customers. With lower costs, you can hire more employees, or otherwise expand your operations and further grow the business.

4. Enhanced Order Fulfillment: Your 3PL partners will use the latest in computer and software technology to help automate order fulfillment. This translates to fewer errors ordinarily caused by human workers. The more accurate your orders are, the less chance customers will be displeased and send items back.

5. Customer Satisfaction: Keep your customers happier thanks to faster and more accurate order fulfillment made possible with automated processes in a modern 3PL warehouse services facility.

6. Technology Integration: Since the warehouse services provider is integrating the latest technology systems to manage logistics, work goes faster and more accurately to receive orders, process them without error or delay, and then pick each item for fast packing so they can ship out that same day.

7. Supply Chain Visibility: Imagine gaining instant access to real-time sales data as it comes into the 3PL system. You can see which ZIP codes are home to your biggest and most loyal buyers, for example, or test the effectiveness of regional marketing efforts.

8. Adaptability and Scalability: Instead of being stuck with the size limitations of owning and managing your own warehouse and being responsible for maintaining the facility, your organization can operate much more nimbly thanks to third-party warehouse logistics experts working on your behalf. As you find more orders coming in, you don’t have to move to a new warehouse to manage inventory. The 3PL company’s warehouse capacity will always meet your demand as you scale up.

9. Risk Management: Keeping risk to a minimum is easier when you have a third-party logistics team in your corner. The warehouse will have advanced security systems in place to protect your inventory. The software and automated picking and packing help to avoid product shrinkage due to loss or theft, so your risks decline as profits grow.

How Third Party Logistics Warehouses Work

a worker fulfilling orders at a fulfillment center -- highlighting the differences between distribution centers and fulfillment centers

Often, it makes more sense to outsource warehouse logistics to 3rd-party experts, rather than handling these tasks internally. Before you hire professionals, here is insight into how the process works in third-party logistics warehouses.

A 3PL warehouse provides all the storage capacity you need, growing as your company evolves in size and scope, such as to meet seasonal customer demand.

As orders come in, automated computer and software processes help workers pick and pack the items accordingly, ensuring they get out to customers in a timely fashion.

The warehouse has 24/7 security to keep valuable merchandise safe.

Throughout the process, the 3PL system is monitoring the location of the package until it reaches the customer.

Essentially, the 3PL warehouse provider receives and stores products, addresses fulfillment tasks with picking, packing and kitting services, as well as sending items and dealing with any returns or recalls.

B&C Logistics: Your 3rd Party Logistics Partner

Clearly, there are a lot of moving parts to keep track of when it comes to third-party logistics. And making sure the entire system works properly and efficiently takes years of experience.

This is where the warehouse logistics experts at B&C Logistics can make a big difference for your organization. We’re standing by to provide customized warehouse and logistics services and address any fulfillment requirements you may have. To learn more about our approach to 3PL systems and how we can help you expand your reach in the marketplace, please get in touch with B&C Logistics at your earliest convenience for a customized quote.