Logistics is how a company manages a product from the point of sale to delivery. If you hold a lot of inventory, you need a storage plan that fits your daily workflow.
Logistics is a key part of supply chain management and of meeting demand. A good warehouse process helps your business in these ways:
- Fewer errors and less product damage
- Less loss from theft or damaged goods
- Higher labor productivity
- Happy buyers
- A stronger brand
- More useful products
- Reliable delivery
- Safe and secure storage
- Easier planning and organizing of logistics
- Lower risk of supply chain disruptions and inventory mishaps
Why Warehouse Logistics is Important
Warehousing lets you meet demand for fast, accurate order fulfillment. Efficient logistics lifts your output and keeps your buyers happy. Happy buyers are the base of any lasting firm.
Good logistics takes some science and some art. You need someone who can picture the whole chain, from start to finish.
You also need to solve problems. Clear steps prevent many of them. A good plan spots the rest early. When a problem does happen, you need a clear process to handle it fast.
Warehouse and Product Management
Poor inventory control can sink a company. Telling a buyer that an item is now on backorder can strain even a strong relationship.
Some sellers think a short supply drives demand. That idea is unproven and risky.
Accurate inventory tracking shows what is really in stock. According to F. Curtis Barry & Company, backorders can cut sales by at least 10%.
There is a legal side too. The Federal Trade Commission’s Mail, Internet, or Telephone Order Merchandise Rule says sellers must have a reasonable basis to expect they can ship on time. That means the advertised time frame, or 30 days if none is stated.
A seller who cannot meet that rule must get the buyer’s consent to a delay, or refund the payment. That adds work in other parts of the company.
Barry’s research also puts the cost at $15 to $20 per backorder. Extra customer service, shipping and pick and pack costs add up. Over time, that erodes your profit.
10 3PL Best Practices to Consider
Best practices help build accountability. Check these 10 points before you pick a 3PL partner.
Expertise and Industry Knowledge: Check the partner’s experience in your industry. A partner who knows your sector will understand your needs and challenges.
Capabilities and Services: Look at the full range of services, and ask how they price each one. Make sure they fit your needs now and as you grow. Look at shipping, warehousing, stock control and value-added services.
Technology Systems: Ask about the partner’s systems. You want logistics software, a warehouse management system and transportation management tools. These give you real-time visibility and clear communication.
Scalability and Flexibility: Check whether the partner can grow with you and handle seasonal swings. They should adapt to your changing needs without losing quality.
Network and Geographic Coverage: Look at the partner’s reach. Do they have well-placed warehouses and transportation to serve your customers? If you ship overseas, ask about international logistics.
Performance and Track Record: Review the partner’s record. Ask for references and case studies that show steady, reliable service. Look at on-time delivery, order accuracy, returns management and buyer satisfaction.
Pricing Structure and Cost: Understand the fee structure. That includes setup costs, transaction fees, contract warehousing charges and fees for value-added services. The pricing should fit your budget and come with a clear breakdown.
Customer Service and Communication: Judge how well the partner communicates. You should get quick, proactive support and regular updates. A dedicated account manager is a plus.
Compliance and Risk Management: Check the partner’s compliance with regulations and industry standards. Ask about safety, security and quality certifications. Ask how they reduce the risk of supply chain disruptions.
Cultural Fit and Alignment: Make sure your team and the partner share values and a focus on service. A good match makes the deal work.
Use these criteria to choose a 3PL partner that fits your needs, from freight consolidation to storage.
How Gratton Warehouse Handles 3PL
Gratton Warehouse is one of Omaha’s first warehouse companies. Over the years we have learned and adapted to improve how we run our warehouse. You get the benefit of that experience.
We are a 3PL warehouse. That means we can improve your efficiency and lower your costs. Here is what we can do for you:
- Better company performance. When we handle your supply chain functions, you can focus on the core of your business. Our warehouse processes let you stop worrying about your supply chain.
- Efficient 3PL administration. We cover every step of the supply chain at our Omaha warehouse
Our Omaha warehouseWe store and ship from 11005 E Circle, Omaha, NE 68137. Barcode scanners track every item.. We track arrival and departure times for your goods. We move products from one station to the next. - 3PL accountability. We invest in logistics tools so we can account for every item in the chain. We also carry adequate insurance to cover risk.
- Better price negotiation. As a 3PL company, we help you negotiate carrier costs. That can save you a lot of money.
- Scalable and flexible. It is easy to grow or shrink the space and labor you need. Our processes handle seasonal swings. We offer month-to-month terms with no minimums.
A good third-party logistics partner must be able to scale. That starts with the right infrastructure: plenty of warehouse space and strong tools. It also means planning resources around what customers order.
Staff, trucks and warehouse space should match demand. Data and forecasting help a partner adjust without losing quality.
Strong partnerships with carriers and suppliers help too. They give a partner extra warehouse space and special transport when demand surges.
An agile mindset matters most. A good partner decides fast, watches trends and changes its steps as needs change.
Finally, a good partner keeps improving. Lean management, regular reviews and feedback loops cut waste and raise efficiency.
What Gratton Warehouse in Omaha can do for YOU!
We make inventory reports available daily. The reports break down daily counts, what has shipped and which products perform best. You stay in control of your inventory.
We use our methods, tools and strategies to manage every part of your supply chain.
Contact us today or call (402) 339-9993 to find out how we can save you money.
