5 Reasons to Use Outsourced Warehousing and Fulfillment

5 Reasons to Use Outsourced Warehousing and Fulfillment

outsourced warehousing and fulfillmentWarehousing and fulfillment is an increasingly critical aspect of business. By managing the flow of goods through the supply chain, you can effectively control costs, limit exposure to over-stocked inventory, manage cash flows and also streamline transportation. For small startup companies looking to establish a presence in a strategic market or large companies looking to seize opportunity in new areas, or any others in between, third-party logistics (3PL) providers give options that allow businesses to scale efficiently.

Does it make sense for your business to outsource? Here are 5 key reasons to outsource warehousing and fulfillment to a 3PL provider.

  1. Flexibility. Utilizing a 3PL warehousing and fulfillment provider allows you the flexibility to set up and scale your distribution model as business demands shift. You can more easily grow into new markets that allow you to service your new customers. By decentralizing distribution, you can offset transportation cost increases due to rising fuel prices or other economic factors. You also have more flexibility with on-hand inventory levels. By not having to justify the cost of filling an entire building, you are able to maintain more appropriate levels of stock and replenish on an as-needed basis. You can also better account for inventory fluctuations due to demand or seasonality.
  2. Consolidation. A 3PL will provide inventory and transportation consolidation benefits. By housing your inventory under the roof of a 3PL warehouse provider, you allow for multiple shipments to be shipped in a more economical manner than might be possible otherwise. In addition, 3PL providers often have deep discounts with many transportation providers to further help reduce costs.
  3. Expertise. Proven processes and industry knowledge are key strategic benefits to utilizing a 3PL provider. A process-driven warehousing provider can be a key strategic partner to a business. The difference between warehousing and distributing your products with correct versus incorrect processes can be the determining factor in whether or not you ultimately serve your customer. It can also determine whether or not you might be able to win the customer in the first place. An experienced 3PL partner is able to pass on value-adding benefits that help reduce your costs, drive up your efficiency and allow you to focus on your core business.
  4. WMS and TMS Solutions. Leveraging a 3PL that has strong technology solutions means you can level the playing field without investing hundreds of thousands of dollars in systems and IT infrastructure. Powerful WMS (warehouse management system) and TMS (transportation management system) capabilities can add huge value to your company. These systems allow for real-time access to detailed inventory information and allow you to forecast upcoming trends. They provide you with instant rate shopping, rate analysis and shipping functionality through a web-based interface. You are even able to leverage these system capabilities across to your customer base directly, giving your company a huge competitive advantage in the market.
  5. Reduced Fixed Costs. Upfront capital expenditures to acquire warehousing space and infrastructure are huge. A building, racking, staff, fork trucks and lifts, WMS/TMS, conveyors, etc., are just some of the initial investments that easily drive costs into the millions and can cripple cash flows. Spreading out to additional locations grows this exponentially. A 3PL can scale its operations to address your fluctuations in demand, and will allow you the ability to easily forecast the landed cost of each of your products. It also allows you to more effectively spread this cost to the actual sale of the product by significantly reducing the upfront capital costs.

A fully integrated 3PL warehousing and fulfillment strategy allows you to utilize an expert to manage this important aspect of your supply chain. A 3PL provider should be able to provide a road map to how you can most effectively build and maintain your inventory. The provider should be rooted in providing flexible solutions that fit your strategy, technology to allow you all levels of information, process development to drive efficiency and cost reduction, and have the fiscal sense to help you maximize your transportation dollar. Ultimately, having a 3PL provider as a strategic business partner can be the best decision a company can make. Logistics Plus is ready to be your partner.

Warehousing-Button

When One Door Closes, Another Opens: Logistics Plus Self-Fulfillment Solutions

When One Door Closes, Another Opens:
Logistics Plus Self-Fulfillment Solutions

amazon-self-fulfillmentAs recently reported, sources say the giant online retailer Amazon.com is expected to close the Fulfillment By Amazon (FBA) program to new sellers during the Q4, 2016 period. New sellers who have not yet sent in their first shipment to Amazon will not be able to do so until January 2017. Amazon’s latest move will leave many hopeful retailers – without their own self-fulfillment programs – on the sidelines as other previously-established FBA sellers fight for those coveted Q4 sales.

Why is Amazon doing this? With the rise of demand and sales that Q4 brings, Amazon usually experiences a huge flood of sellers looking to cash in on the holiday shopping craze, but these ‘growth spurts’ don’t come without consequences.  Amazon boasts a huge network of fulfillment centers in 23 states; in fact, they reportedly have over 50 fulfillment centers, over 20 sortation centers, and more than 90,000 full-time employees, but these facilities are not intended to be long-term storage warehouses, but rather temporary short-term storage facilities. The growing number of Amazon FBA sellers, coupled with slow-moving inventory, has put a strain on these fulfillment centers to the point that Amazon was forced to take measures to keep inventory flowing through its veins.

So what can new Amazon sellers do? If you have inventory coming and you see yourself blocked from selling your items on FBA, you still have the option to sell your products through a self-fulfilled (or Merchant-fulfilled) type of scenario with the assistance of a third-party warehousing and fulfillment provider – like Logistics Plus. We are an established and approved member of the Amazon Solutions Provider Network (SPN), so we know how to help sellers import, warehouse, label, and deliver their merchandise according to Amazon specifications.

When you work with Logistics Plus, instead of sending your orders to an FBA distribution center, have your goods delivered to one of our many warehouses around the U.S. (you don’t need to store your merchandise in your own home or garage any longer as some sellers have resorted to doing). When your merchandise is stored at a Logistics Plus warehouse, our warehouse management system (WMS) software provides you with online, complete real-time visibility to your inventory on-hand. Beyond that, the process is very similar to FBA; only you won’t need to worry about inventory management, security, picking & packing, labeling, etc. – Logistics Plus does all of this for you.

  • Orders come directly to you through the Amazon system.
  • You then forward the order to Logistics Plus along with the prepaid shipping label and packing slip.
  • Logistics Plus picks and packs the order, labels it, and then sends the order to your customer.
  • You monitor the status of your order through our online WMS.

That’s it. Now you can focus on marketing and selling your products rather than worrying about the warehousing and logistics side of things. If you’re ready to begin your own Merchant/Self-Fulfilled program with Logistics Plus, click the button below to learn more and get started. Alternatively, you can send an email to amazonretailer@logisticsplus.com. We’re here to help!

amazon-self-fulfillment-but

North American Warehousing Solutions

North American Warehousing Solutions

North American Warehousing SolutionsLogistics Plus® dedicated warehouse solutions are just the right size, in just the right place, for just the right length of time. You don’t pay for space you don’t need; we’ll find you the perfect fit! Need to store your heavy-lift, industrial-sized cargo? No problem – we’ve got it covered. Need to warehouse your retail inventory for Fulfillment By Amazon (FBA) or direct-to-customer fulfillment? As a member of the Amazon® Solutions Provider Network – we’ve got that covered too. Need a comprehensive inventory management solution with pick, pack, and ship services? Our strategic partnership with Lynx Fulfillment® can provide everything you need.

We have warehouse facilities strategically located for West Coast, Southwest, Southeast and Northeast distributions. Additionally, we have the leverage and expertise to source additional warehousing space wherever else you need it – even around the world! Customers get full visibility to their inventory through the Logistics Plus eWorldPlus™ warehouse management systems (WMS) powered by CargoWise One®.

NA-Warehouse-Map

Erie-PA-warehouseLogistics Plus – Erie, PA
Open space and high-ceilings, perfect for heavy-lift and cargo big and small
20- and 40-ton cranes with 15K pound forklift capacity
Secured facility with monitored cameras and alarms

Logistics Plus – Dallas-TX-warehouseDallas/Fort Worth, TX
Pneumatic tire forklift with 62,000 lb. lifting capacity – the BIGGEST in N. Texas!
Open space, high-ceilings and tall doors perfect for heavy-lift and big cargo
Secured facility with monitored cameras and alarms and fenced-in property
Activated Foreign Trade Zone (FTZ)

Los-Angeles-CA-warehouseLogistics Plus & Lynx Fulfillment – Los Angeles, CA
Co-managed by Logistics Plus and Lynx Fulfillment
Nine (9) docks for loading and unloading
Forklifts with 3K-4K pound heavy-lift capability
Ideal location for imports and pre-FBA storage and labeling

Lexington-NC-warehouseLogistics Plus –  Lexington, NC
12-trailer shipping platform
Three (3) docks for loading and unloading
Forklifts with 3K-4K pound heavy-lift capability
Secured facility with monitored cameras and alarms

Olean-NY-warehouseLynx Fulfillment – Olean, NY
Comprehensive pick, pack, and ship fulfillment services
Inventory management and inbound customer service
Kitting, bundling, packaging, and labeling services
FBA assembly, labeling and distribution

Ready to get started? Click the button below to request more information on our warehousing and distribution solutions. You can also click the image below to download a PDF version of our North American Warehousing flyer.

Warehousing-Button

 

NA-Warehousing-Flyer-Thumbnail

The Benefits of Third-Party Fulfillment

The Benefits of Third-Party Fulfillment

FulfillmentThe Amazon effect, ecommerce growth, multichannel/omnichannel retailing: These are all trends pushing retailers and distributors to rethink their global supply chains. If you’re among this group, one of the considerations you may be weighing is whether or not to outsource some or all of your fulfillment operations to a third-party logistics (3PL) company. Here are a few benefits that third-party fulfillment could provide to your operations:

  • Reduced Cost Per Order. A 3PL can often provide a lower cost per order when compared to internally managed operations, particularly for small-to-midsized companies.
  • Time and Resource Allocation. A 3PL allows companies to concentrate management time on marketing, merchandising, and ecommerce. If transportation, logistics and fulfillment are not core competencies for your company, having a 3PL manage these activities allows you to focus your limited internal time and resources where they can provide the greatest value.
  • Scalability for Peak Seasons. During holidays or peak seasons, a 3PL can allow companies to successfully process customer orders without hiring additional staff or requiring greater internal capacity.
  • Lower Capital Investment. A 3PL can help reduce the capital outlays for things like new warehouse and fulfillment facilities, order and warehouse management systems, and telephone and communication technologies.
  • Faster Fulfillment Times. A 3PL can provide regional distribution across the country so that you can deliver orders more quickly to your customers.
  • Lower Transportation Costs. An experienced 3PL will be able to help you reduce your transportation costs by using their expertise to negotiate better rates and find truck capacity in your critical shipping lanes.
  • International Imports and Exports. Many multichannel companies use 3PL partners to more effectively source products from overseas, or to distribute orders to customers in foreign countries.
  • Direct-to-Customer Shipping. Store-based retailers sometimes contract with 3PL partners to ship direct orders from their ecommerce marketplaces, rather than bring small-order pick/pack/ship into their DCs. Online retailers can also use 3PL partners to manage dual inventories for both Fulfillment By Amazon (FBA) and direct-to-customer orders.

Do you have questions or need help with your fulfillment challenges? Logistics Plus specializes in a variety third-party warehousing, distribution, and fulfillment solutions. We invite you to click the button below and contact our fulfillment experts to get started.

Fulfillment-Button