Warehousing and distribution can’t be that difficult can it? Surely it just consists of a few processes such as receiving, putting away, picking and packing, and shipping. From a distance this seems like a simple enough task but in reality there are many more complex processes to challenge you such as increased manpower, management of inventory norms, regulations, government rules, and order fulfilment rates. In order to meet the varying expectations of your customers you need to have the relevant expertise, efficiency and accuracy. Here at SLA many of our customers have discovered that the most effective method of managing these challenges is to outsource the entire operation to experts rather than struggling to manage them in-house. Let’s take a look at 7 benefits of reaching this decision:
Protects your initial capital
You’ll need to have a large amount of capital if you want to set up your own warehousing and distribution facility. Renting warehouse space costs between $95-$125 per square metre and you’ll need one with plenty of space for racking and pallet storage as well as equipment to handle goods, high quality IT-infrastructure and other electronic installations.
Controls the cost of your warehousing
Outsourcing will give you greater flexibility allowing you to control your logistics and warehousing costs. Rather than paying for empty spaces or a seasonal inventory throughout the year, you simply pay for the space you use.
Lowers the cost of your distribution
By combining volumes from many customers 3PL providers are able to bring their unit rates down and this is passed on to individual customers thus lowering their distribution costs.
Focus on other areas of your business
By outsourcing your warehouse and distribution requirements it allows you to step back and view your operations from a distance, freeing up your time and energy, so that you can concentrate on other core areas of your business and make those key decisions which will benefit your business in the long run.
More efficient stock keeping
Any experienced 3pl provider understands the need for businesses to have instant access and complete traceability of their stock at all times As such most specialised logistics companies have advanced management systems in place which can deliver this information to the client when they need it most
Reduces your risk
By outsourcing all or part of your logistics requirements to a 3PL provider, any risks that are associated with warehousing and distribution operations are shifted to them. The 3PL provider becomes accountable for any operational failures or new requirements.
Take advantage of value added services
Most 3PL providers include a variety of value added services in the package such as palletising, shrink wrapping, and labelling, bundling and more.
Here in Brisbane, Specialised Logistics Australia (SLA) offers comprehensive and efficient warehousing and distribution support to meet the individual needs of their clients. If you’re considering outsourcing your company’s warehousing and distribution operations then why not get in touch to talk about your requirements and see how our service can benefit you. Call SLA today on 07 3879 3500.