June 3, 2022

8 ways Strategic Warehousing increases profits

Overview: Strategic Warehousing

Different industries face different challenges. Companies want to manage various internal aspects such as transportation, warehouse space, fulfilling customer orders, and many more through strategic warehousing.

Sometimes the task of optimizing all these aspects can be challenging. This is why companies specialize in Strategic Warehousing like Last Mile Logistics. We want to emphasize this because strategic warehousing is not just making spaces look organized. Still, it’s a complex logistics process involving specialized teams, equipment, technologies, and safety measures.

Regardless of the complexity, we would like to share with you eight ways Strategic Warehousing can help your company, including increasing profits. (The last one is the most important one!)

1. No extra costs in a specialized team

When you work with a reliable third-party logistics/warehouse provider, they utilize their domestic teams across multiple accounts. The Operations Manager on your account may be working on several reports, so you only pay for a portion of their salary; similarly, the cost of a forklift lease or software might also be shared across multiple accounts.

2. You don’t have to worry about storage space

Most third-party logistics companies have hundreds or thousands of storage units or domestic warehouse partners around the country to store and handle your storage.

3. Packing and processing technology

A tech and data-driven warehouse that has high-quality programs will be able to manage multiple orders, package tracking, and last-minute changes. This can significantly reduce human errors while increasing productivity.

4. Inventory tracking

3PL Companies can also address your fulfillment needs, cutting your expenses in many ways. They often offer an innovative service called inventory tracking, so if you decide to go down that route, it could help to increase profits because all your inventory needs, requirements, and quantities will be tracked. Helping you buy and store what you need and not overflow inventory in the future.

Shipment tracking

5. Cut time and costs by outsourcing services

3PL companies also offer some outsourcing services such as dealing with the day-to-day and related logistics, fulfilling orders, and next-day delivery. This way, you can focus your time and money on something else and let the experts take care of those tasks.

6. Precision in delivery

Strategic Warehousing has to receive, store, and deliver goods to the right customer in the right amounts at the right time. Doing this efficiently and consistently will lead to a better brand reputation and more significant profits.

7. Manage demand

To scale as a company, have more profits, and meet customer demands, you have to be able to manage them. 3PL companies and strategic warehousing can be two ways to manage customer demands efficiently without compromising stress and money.

8. Security

Probably the most critical aspect of strategic warehousing. Warehouses are one of the supply chain links with the highest theft rate. More than half of warehouse fraud involves internal resources. It is crucial to have a trusted 3PL company, insurance, and workers to avoid this situation.

warehousing logistics

So… Why consider Strategic Warehousing?

Strategic Warehousing will help you with many more things than just profit. It will allow you to be more specialized, give you access to new technologies, and let your company handle a large number of clients at a time and share in the expenses.

Last Mile Logistics can be that trusted 3PL partner for your company. With our resources, expertise, and experience, you will be able to scale up, providing market expansion while keeping your customers happy.