Selecting the right location for your company’s warehouse operations creates more affordable and efficient storage and shipping. Plus, the ideal site helps you meet customer expectations better, leading to higher satisfaction and a healthier bottom line.

Top 7 Considerations When Choosing a Warehouse Location

Here are seven practical warehouse location strategies to help you find the perfect spot for your business.

1. Check How Close You Are to Your Suppliers

The distance between you and your vendors contributes directly to your overhead and risk. The closer you are, the more money your company saves on freight. Plus, you’ll mitigate the risks associated with transportation disruptions, which can be especially impactful for perishable goods.

For example, if your company receives goods at ports in Norfolk, Charleston and Wilmington, one regional warehouse facility will likely serve your needs. Conversely, receiving goods in geographically diverse locations requires a different approach — multiple facilities closest to your receiving areas. You can save more time and money with numerous warehouses than you will by transporting your goods to one location farther away.

2. Map the Possibilities to Customer Locations

Proximity to your customers is equally as essential as being close to your suppliers.

Modern consumers have come to expect order fulfillment as quickly as possible. They want it to be economical, too. You generate additional customer loyalty and a competitive edge when you meet those demands. Locating a distribution channel nearby naturally reduces the time goods take to reach their destinations and the associated transportation cost.

If most of your customers are in the Southeast, a centralized storage and distribution facility in the region makes perfect sense. For customer bases throughout the country, investing in a multiwarehouse strategy is often the best solution. The lower fulfillment times create better customer experiences that can help offset any increased costs in the long term.

3. Evaluate Accessibility to Major Transportation Hubs

Regardless of which method you rely on most, you’ll want to be closest to it to boost your volumes and reduce costs.

For example, companies primarily using air cargo should look for space close to a major airport or with easy access via the local highway system. Those who depend heavily on less-than-truckload (LTL) transportation can save money with a warehouse located close to LTL carriers and common shipping lanes. E-commerce businesses can improve fulfillment with sites near major parcel centers.

Storage and distribution facilities close to multiple transportation options are essential if your company’s supply chain relies on intermodal shipping or transloading services.

4. Investigate Highway, Road and Traffic Conditions

In addition to proximity to major transportation hubs, you’ll also want to investigate the impact of local highway, road and traffic conditions.

How close is the potential site to major highway systems? Is there only one or two nearby, or is the area well-connected to numerous expressways that can facilitate multiple shipping lanes? You’ll also want to consider the typical traffic volume and busiest travel times. Shipments that are consistently delayed because of congestion drive up fuel costs and create a poor customer experience.

The local road conditions are also key. Substandard surfaces and improperly maintained roadways can create safety and accessibility issues. Likewise, evaluate accessibility regarding traffic signals. A well-placed site should have adequate red lights and cycle times to help control and improve the local traffic flow.

5. Examine the Markets and Local Factors

Ideally, your warehouse’s location should be close to the employees you’ll work with. Keep in mind that the surrounding area’s demographics impact the wages you’ll pay and the expertise available. If there aren’t enough skilled workers in the immediate area, your service levels may decline, and you might have higher labor costs to attract the most qualified talent.

There are two other vital local considerations — the rent costs and disruptive event potential. Some areas are more competitive than others, and comparing the higher price per square foot with the overall location benefits is crucial. Government incentives or favorable tax structures may help offset the increased expenses. Similarly, some regions have the built-in potential for significant natural events, such as earthquakes and hurricanes, that you must evaluate for risk.

6. Assess Building Potential and Associated Costs

Before choosing your warehouse site, look closely at the building’s potential to scale with your company. Opting for a place in a crowded area only to find you can’t expand as your business grows means you’ll start the search for space from scratch. If no warehousing is available in the immediate area, relocation is a must, and the impact can waterfall. For example, your company may see an increase in employee turnover, leading to increased recruiting and training costs.

You’ll also want to pay careful attention to utility availability and costs. Most modern businesses need robust telecommunications solutions and internet access with the required speed and bandwidth. Consult with your IT professional to ensure the site meets or exceeds the demands of your particular technology and systems.

7. Know the Rules and Regulations

Weather events aren’t the only factor that can impact and disrupt your operations. Local rules and regulations may also come into play. For example, municipal laws may impose access limitations to particular areas on specific days or times.

They may also restrict vehicle sizes. Underpasses or bridges along the delivery lanes may have height or weight limitations. At best, these regulations cause a detour and delay. At worst, your goods are now in the back of a 13.5-foot-high tractor-trailer stuck under a 12.5-foot-high underpass.

Municipal legislation can pose another potential risk. Changes to existing laws or pushes to limit truck traffic could leave you scrambling for a new location at an inopportune time. Check to see if there are any pending measures before committing to a site.

Outsourcing vs. Buying Your Own Warehouse Locations

Perhaps the most important decision to consider when trying to find strategy warehousing locations is whether to outsource with a 3PL or purchase your own space.

Choosing to outsource your warehousing operations involves partnering with a third-party distribution company to handle your goods’ long- or short-term storage. This often comes with a contract warehousing agreement between you and the 3PL based on your distribution needs and the services required.

There are several reasons why choosing to outsource your warehouse location to a 3PL makes sense for your business. Here are some of the following benefits of this warehouse option:

• Industry expertise and knowledge
• Customized services and add-ons
• Increased security and reliability
• Ability to scale your business quickly
• Keeps your operations cost efficient

That said, deciding to outsource or keep your warehouse locations in-house depends on whether you have the resources to purchase, rent or build a facility. Additionally, running a warehouse requires staffing and management, which will add to your overall cost of choosing to keep operations internal. Furthermore, if you calculate your warehouse size needs and find that your business will not fill an entire facility regularly, then choosing to outsource operations to a third-party is the most economical option to keeping costs down.

Partner With Crown LSP Group for Distribution Solutions

We’ve been eastern North Carolina’s choice for customized end-to-end distribution solutions since 1987. Our team is a trusted source for logistics, transportation, warehousing and value-added services.

Request a free quote online, or call an expert at 252-985-1070.

What Is Warehouse Automation?

Warehouse automation is the process of moving products into, out of and within a warehouse with minimal handling by people. Automation takes advantage of technology to complete repetitive tasks, track inventory and increase efficiency.

For example, an automated distribution center may use radio frequency identification (RFID) tags to map inventory movements or locate goods. When a worker moves products from storage to shipping — or vice versa — automated trackers detect these changes. Once items pass by sensors, a software program automatically logs their journeys. As a result, stock counts are current and a warehouse operator can pinpoint product locations with a few clicks.

Today’s warehouse automation solutions offer significant benefits and options like robotics, blockchain technology, big data and more. These alternatives enable businesses to lower expenses, improve productivity, advance safety and maintain accurate records.

Benefits of Using Automation in Warehouse Operations

Automating warehouse operations provides businesses with advantages like reduced outlays, efficiency, security and more informative stock logs.

Lower Costs

A primary benefit of automating a distribution center is its direct impact on a business’s bottom line. Investments in automating technology lower a company’s overhead by replacing inefficient human processing with advanced solutions. As a result, labor costs and energy usage decrease. Options like automatic product retrieval enhance revenue by reducing picking errors and the time associated with manual methods.

Higher Workforce Productivity and Safety

Attract and retain the best in industry talent by embracing technology options that increase employee satisfaction and workplace safety. Automation solves heavy lifting and repetitive motion challenges, reducing injury risk and increasing output.

Crown LSP Group provides comprehensive on-site warehouse services in your facility with crews experienced in the latest automation technology.

Inventory Accuracy Increases

Using automation for your warehouse stock optimizes your efforts to support your customers. Robust applications track, pick and ship products with greater accuracy, simplifying inventory management and auditing. Crown LSP Group offers integrated warehouse management systems with our customized storage solutions to help your company capture these benefits.

Types of Warehouse Automation and AI

Warehouse automation examples span the landscape, from robotic options to devices that communicate online to analytical data and blockchain technology.

Robotics

Robotic warehouse automation has grown significantly recently, for good reason. These solutions help improve job satisfaction and productivity while reducing errors. Common types of robotic automation include:

• Automated guided vehicles (AGVs): Many use AGVs for goods transportation, either moving products between storage locations or from one department to another. These robotics require assistance with movement execution, usually via preprogrammed pathways.
• Automated storage and retrieval systems (AS/RS): This complete system processes the entire order from picking to delivery. Since workers remain stationary, AS/RS automation delivers safety and efficiency with little potential for error.
• Autonomous mobile robots (AMRs): These robots are more complex machinery, able to undertake movement on their own using sensors and maps. Their advanced programming makes them ideal for inventory scanning and tracking applications.

Blockchain Technology

Blockchain technology rose to fame with the advent of Bitcoin as a secure method to link blocks of data together and prevent alteration. In warehouse applications, blockchain joins various stakeholders along the supply chain with an accessible, secure platform for management and communication.

The technology pairs well with the Internet of Things (IoT) to check conditions at different points along a product’s journey, creating an immutable ledger. Blockchain can also ease vendor payments via its Smart Contract functionality. For example, once a distribution center receives goods and confirms their condition, the purchasing agent verifies it through the system. The embedded code then self-executes and releases payment directly on the blockchain, completing settlement quickly and with high degrees of transactional security.

IoT

Robotics represents only one component of the IoT. Many other devices — such as sensors, GPS units and temperature-monitoring equipment — fall into this category. Other typical connected device applications include:

• Employee monitoring: Outfitting employees with wearable IoT devices allows center management to gather production data, pinpoint worker locations and provide extra safety measures, such as alerting the employer to a fall.
• Equipment maintenance: Smart equipment uses an internet connection to report its condition. These machines can issue scheduled upkeep reminders and send error codes directly to qualified personnel for faster repair service.
• Transportation: One of the most vital segments of the supply chain gets a big boost from IoT in GPS devices. These units ensure a driver follows the most efficient travel routes and provides real-time arrival estimates for better inventory management. Partner with Crown LSP Group for comprehensive transportation services with the latest in IoT transportation technology.

Big Data

Big data helps more than retail organizations — it supports best inventory management practices in warehousing. Ways analytics benefit the inventory management process include:

• Demand prediction: Rely on customer behavior metrics to more accurately anticipate and adjust to shifts.
• Efficiency boosts: Use your analytics to identify underperforming employees or machinery.
• Replenishment management: Examine overstocked and understocked items to effectively manage product availability and turnover.
• Loss prevention: Investigate and prevent shrinkage by using metrics to pinpoint the locations that need more security measures.
• Recall acceleration: Get proactive with product recalls by using data to track inventory from its production to the end-user, enabling quicker contact and better brand perception.

Conclusion

Available options for automation and AI in warehouse operations today include big data analysis, blockchain programs, robotics, and the IoT. The advantages of an automated warehouse provide significant opportunities for businesses to increase their workers’ production, maintain a safer work environment and improve recordkeeping while lowering costs.

Crown LSP Group welcomes the challenge of devising an ideal solution to your business’s warehousing needs. We’re a family-owned company with over 30 years of experience as a full-service third-party logistics partner. Discover how our expertise benefits your organization’s bottom line while solving supply chain issues. Contact a Crown LSP Group representative today and experience what a can-do attitude can do!

When you need to store inventory, whether for a short amount of time or in the long term, you must know how much warehouse space you need. If you overestimate, you’ll end up spending more than necessary. If you underestimate, you may not have enough room for all of your inventory.

Learn how to calculate warehouse space so you can find the right storage solution or contract warehouse for your needs.

Warehouse Space Requirements

Your company can sell or manage similar products to those of another business and still have differing warehouse needs. When calculating how much space you need in a warehouse, consider the following factors:

• Pallet size: Pallets come in a range of standard sizes, with the most common being 48 inches by 40 inches. Square pallets are also available. Pallet size influences how much room your inventory needs on a warehouse shelf.
• Number of pallets: You also need to know the number of pallets you have to store — or at least an estimate of the number of pallets.
• Stacking height: You can stack pallets on top of each other to maximize vertical space. Keep in mind that stacks that are too tall can topple. It’s essential to know the allowable stacking height, which is based on guidelines from the Occupational Safety and Health Administration. The stacking height varies based on the size of the pallets, the materials being stored and pallet weight.
• Warehouse space utilization: The layout of your inventory in a warehouse also influences the amount of space you need. Warehouse space utilization refers to how efficiently you make use of the area in a facility. It can be affected by factors that are beyond your control, such as the shape of your inventory.

Warehouse Space Utilization Explained

Warehouse space utilization shows how much of the storage area in a warehouse is used. It’s the ratio of space in use compared to available storage space. A ratio of 100% would mean that all of the usable room in the warehouse is filled to capacity.

The ideal warehouse space utilization ratio for you depends on several factors. These include the shape of your inventory, its ability to stack, the expiration dates and the number of products you have. Some common ratios include:

• 40%: Products that can’t stack neatly or that form unusual shapes on a pallet will naturally take up more space in a warehouse. You’ll need more room to maneuver around the products when picking them, so you won’t be able to use as much of the available space.
• 50%: Some types of products have expiration dates, such as food or cosmetics. You need to be aware of the dates on these products and send the older ones out first. A maximum space utilization ratio of 50% should allow for adequate space to maneuver around your inventory and turn it correctly. If the products don’t stack neatly, you’ll need a lower ratio.
• 60%: Your space utilization ratio can be slightly higher if your products turn frequently but don’t have expiration dates. The 60% ratio is also ideal for companies that have multiple product types and up to 100 stock-keeping units (SKUs).
• 70%: If you have up to 100 SKUs that don’t have expiration dates and turn up to six times per year, you can use up to 70% of the space in the warehouse.
• 80%: Companies that only have a few SKUs that don’t expire and don’t have much turnover can use up to about 80% of warehouse space without issue.

Note that you never want your warehouse space utilization ratio to be 100%. The higher the ratio, the harder it is for staff to move around the warehouse and pick products.

How to Calculate Warehouse Capacity

A warehouse space calculator will quickly crunch the numbers for you to let you know the area you need based on the number of pallets you have to store, the size of the pallets and your preferred utilization ratio. You can also do the math yourself to determine your storage needs. Follow these steps:

• Add up the number of pallets you have to store. You can estimate this number if you’re not sure of the exact amount.
• Divide the pallet number by the stacking height. If you plan to stack two pallets on top of each other, divide by two. If you can’t stack pallets at all, divide by one.
• Calculate the square footage of the pallets. Multiply pallet width by length — often 48 inches by 40 inches — to find the square footage. If you’re using inches, remember to divide the product by 12 to convert it to feet.
• Multiply the stacking height by the square footage. If you have 16 48-by-40-inch pallets that you can stack two high, multiply eight by 160 to get 1,280.
• Divide by your desired warehouse utilization ratio. In this example, use a utilization ratio of 50%. The solution to 1,280 divided by 50% is 2,560 square feet.

When deciding how much warehouse storage space you need, give yourself room to grow. If you plan on adding more product types or storing more inventory in the future, increase the number of pallets in your calculation or adjust your utilization ratio accordingly.

We Can Help You Determine How Much Warehouse Space You Need

When estimating warehouse space, it is important to note that every scenario is different depending on the needs of your business. What’s more, each business warehouse capacity can vary depending on different factors, such as the type of inventory or the demand for your products.

While the requirements and process above are a good benchmark, it is best to work with an experienced warehousing professional to determine the appropriate amount of space you need. At Crown LSP, we can help you figure out an accurate warehouse utilization ratio and offer solutions to best store your business’s inventory.

Contact Crown LSP Group for Warehousing Services

Crown LSP Group is a distribution solutions company that offers contract warehousing arrangements. We can provide custom and standard arrangements based on your company’s needs. You can lease an entire warehouse facility or a designated area on a short- or long-term basis. To discuss your warehouse storage needs and request a quote, contact us today.

Warehouse safety is an essential cornerstone of warehouse management. With e-commerce rapidly increasing in popularity, warehouse services are in demand more than ever. To ensure your workforce is safe and productive, you must have experienced safety staff and create effective safety procedures.

In this guide, we will look at the main safety challenges in warehousing and provide a comprehensive warehouse safety checklist to ensure that your employees and managers abide by industry standards.

The Importance of Safety in Warehouse Management

Understanding the importance of safety in warehouse operations is the first step towards maintaining your workers’ health and increasing awareness of the potential dangers involved. You can avoid incidents by following warehouse safety guidelines from the Occupational Safety and Health Administration (OSHA) and integrating checklists for various warehouse safety issues.

With online purchasing seeing a record increase, merchants are turning to third-party logistics companies and their warehouse facilities to store, package and ship their goods.

To accommodate the demand, warehouses are hiring more employees to perform a wide variety of tasks. Providing a safe work environment for a growing staff is vital in retaining workers and creating a culture that looks after everyone. Injuries ranging from personal injury to falls and crushing accidents put a significant strain on both the safety culture and employee-employer relationship.

Top Warehouse Safety Challenges

Warehouse operations can become dangerous quickly if the proper safety actions haven’t been addressed. Inadequate training, failure to heed hazard warnings, and improper manual lifting are among the most common safety issues that lead to warehouse injury and death every year.

Inadequate Employee Training 

When it comes to power equipment operation, warehouse employees must be sufficiently trained and licensed, even if a third party needs to be hired to perform the task. Without proper training in place, warehouse managers run the risk of seeing injuries and even death increase substantially. 

Lack of Awareness About Safety Protocols

Awareness of safety issues and dangers around a warehouse is the best way to proactively tackle workplace accidents. The better safety coordinators can identify dangerous situations, create a plan and communicate the plan to the workers, the safer everyone will be. This means the right people must be selected for the warehouse safety management team, and they must be able to instruct others on the dangers of warehouses and proper safety procedures.

Heavy Equipment 

Forklift and other heavy equipment accidents make up a large portion of warehouse incidents that result in serious injuries. Therefore, training and licensing should be taken very seriously when it comes to operating heavy equipment.

Physical Strain on Employees

Modern warehouses require workers to perform many repetitive movements quickly throughout a shift, including standing, twisting, crouching and reaching for objects. If not performed correctly, these movements can lead to repetitive strain injuries, including muscle, tendon and ligament damage.

Ignoring Hazardous Warning Signs

Hazard warnings indicating danger along with barricades to prevent workers and equipment from entering areas or going over ledges are critical in warehouse environments — ensuring all areas are adequately lit falls under this category.

OSHA Warehouse Safety Standards & Guidelines

To ensure that safety is a priority in warehouses, OSHA provides a detailed list of required guidelines that break down the ten most accident-prone areas most frequently cited for violations. Below is a breakdown of the guidelines outlined in OSHA’s warehouse safety document.

Forklifts

About 100 employees are killed and 95,000 injured every year while operating forklifts. Forklift roll-overs account for the majority of these accidents. OSHA stresses the importance of training forklift drivers adequately and evaluating them regularly. Additionally, drivers should routinely inspect and maintain their forklifts.

Hazard Communication

OSHA states that hazard communication constitutes a large percentage of warehouse safety managers’ responsibility. Covering holes and wall openings to ensure equipment and workers don’t fall through is essential. OSHA also recommends clearly labeling and organizing dangerous goods and chemicals and correctly displaying Material and Safety Data Sheets.

Personal Protective Equipment (PPE)

Employees should be supplied and equipped with the proper personal protective equipment (PPE) required for their tasks and should be routinely trained in the equipment’s proper operation. The most common PPE required in warehouses include:

• Respiratory masks
• Hard hats
• High visibility safety vests
• Safety gloves
• Steel toe boots

Electrical Wiring Methods

OSHA includes electrical system design and wiring, mechanical power transmission, and portable fire extinguishers as areas for warehouse safety managers to pay particular attention to. It’s critical that licensed professionals, such as electrical and mechanical engineers, perform all electrical wiring and system design. The dangers posed by improper wiring can lead to severe injury or death of warehouse workers.

Fire Safety & Evacuation Plans

Having proper fire extinguisher locations and training employees on how to use them is especially important in warehouses that store flammable materials. Additionally, warehouse managers need to develop evacuation procedures and ensure workers understand the plan in the event of an emergency. To make sure that everyone understands and follows the plan correctly, conducting evacuation drills is a good habit to adopt in all warehouses.

Warehouse Safety Checklist

Checklists are a convenient way to ensure your warehouse facilities are operating efficiently and employees are performing their tasks safely. To uphold safety standards, warehouse operators need to understand the rules and procedures that cover general safety, forklift operation, and manual lifting.

General Warehouse Safety Checklist

Every warehouse has a different layout, stores different materials, and requires different types of employees. To operate efficiently, you must tailor your general warehouse safety policy to your specific needs. This means focusing on safety issues that stand out as the most dangerous or require additional attention to address. Below is a list of items that you can use to develop a general warehouse safety checklist:

• Warehouses should be well ventilated, and the temperature kept comfortable for all occupants.
• Hazards should be clearly marked, and leading edges blocked off to prevent falls or roll-overs.
• All equipment should be equipped with emergency stops or power-downs.
• Employees should receive ergonomic training and coaching to maintain realistic work expectations and take sufficient breaks to prevent overwork.
• Employees should be trained to operate fire extinguishers and be thoroughly familiar with emergency safety procedures and evacuation drills.

Forklift Operation Checklist

Forklift operation and storage, including loading, unloading and stacking checklists, can include the following items:

• Forklift operators must be appropriately trained and licensed.
• Forklift operators must always wear seatbelts, operate the forklift in approved, well-lit areas and not let anyone else ride on or in the forklift.
• Forklifts should not be operated in any way other than their intended use. This includes ensuring the lift is not overloaded and not lifting loads too high.
• Forklift operators must ensure other workers in the area are aware of their presence by using lights, horns and backup alarms as necessary.
• Place heavier items on lower shelves and ensure they are straight and evenly stacked.
• Store dangerous goods in designated areas.
• Clearly indicate maximum stacking distance on shelving and adhere to height limitations.
• Distribute loads on shelving to balance their load across the shelving unit.

Manual Lifting Checklist

Manual lifting causes a significant number of worker injuries every year. Workers should learn proper lifting techniques to complete these tasks safely and effectively. Some points on an ergonomics lifting checklist can include:

• Use power equipment to lift materials whenever possible.
• Teach workers proper lifting techniques and remain diligent in coaching them.
• Use your legs to lift and keep your back in a neutral position.
• Ask for assistance if a load is too heavy.
• Ensure all areas of the warehouse are appropriately marked and well lit.
• Enforce the wearing of proper personal protective equipment at all times.
• Allow injured workers to take sufficient time to recover and return only when fully ready.

Warehouse safety management is an essential part of a site safety program and can help supervisors and managers quickly make sure their workers perform their tasks safely with all appropriate measures in place. Simply having a brief list of safety tips for your warehouse can aid supervisors in maintaining safety as they perform their daily tasks.

Improve Warehouse Operations With Crown LSP Group

Crown LSP Group is a full-service third-party logistic provider that is here to meet the needs of any business. Whether your business needs additional storage space with temperature control and security systems or shipping at a moment’s notice, Crown LSP can provide a tailored solution to meet your needs. In addition, Crown LSP Group can assist you in your efforts to improve your warehouse operations.

Located in Rocky Mount, North Carolina, Crown LSP is strategically positioned to freight any shipment to three-quarters of the U.S. population within 12 hours. This means you can rely on Crown LSP to store your materials or products while you use your commercial floor space for more productive means. Contact Crown LSP Group today for more information or request a quote.

A contract warehouse is a third-party logistics (3PL) storage facility that stores goods on behalf of a client. The client and the warehouse enter into a contract, which can range from months to years. The agreement may have a fixed fee structure or operate on a cost-plus model. Contract warehouses can also perform many other services, such as handling, packing, labeling, fulfillment and similar activities. Let’s talk more about this potential solution for your long-term storage needs and how to find warehouse contracts that will work in your favor.

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The Contract Warehousing Process Explained

Many companies need to store their goods or supplies for various reasons, and contract warehousing is one of the many dedicated storage options to choose from. Companies that don’t want to build, buy or rent their own warehouse space can enter into a third-party warehouse agreement with an outside provider who specializes in dedicated warehousing. This third-party warehouse provider will handle the storage, shipping and receiving of merchandise on behalf of their client. They can also add value by taking on more logistical tasks such as inventory management and making sure to follow distribution best practices.

Differences Between Contract Warehousing and Other Options

One of the main differences between contract warehousing and other popular options like shared warehouse space or private warehousing is that a contract warehouse is dedicated to a sole client. All the dedicated warehouse’s resources and the entire facility go toward one company’s goods. The tenant commits to occupying that fixed space and relies on the contract warehouse to manage it. Because of this factor, contract warehouses usually require their clients to commit to a specific contract length, often months or years.

There are two other variations on the contract warehousing model. The first is when the contract warehouse company owns the physical facility and allows the tenant company to operate it with their own employees and equipment. In the other alternative, the client owns or leases the warehouse facility and hires a contract warehouse to staff it and handle all operations. Contract warehouses may also parcel out a larger facility for several contract clients. In this arrangement, the contract will dedicate a certain amount of square footage and resources to each client.

Types of Warehousing Options Explained

When your business needs more storage capacity, you have three types of warehousing options. They include:

• Private warehousing: When a wholesaler or manufacturer uses a private warehouse, it owns or leases the warehouse building and is 100% responsible for managing inventory and warehouse operations. This approach is highly involved and requires a hefty investment compared to other warehousing options. Typically, it takes 30 years to see a return on investment when a company builds a private warehouse.
• Public warehousing: Under public warehousing or shared warehouse space, the client does not contract for a dedicated amount of space or resources. Instead, they share the warehouse with other clients. They pay a monthly bill based on the number of pallets that come in and out so they can occupy more or less warehouse space depending on their inventory needs. While the client only pays for the space they use, the warehouse operates on a first-come, first-served basis. A public warehouse may not always have the space you need if your inventory fluctuates often. Usually, these warehouses work best for short-term storage needs, such as seasonal inventory.
• Contract warehousing: Contract warehousing, also known as dedicated warehousing, is when a company outsources warehouse operations to a larger facility or 3PL. Since a contract warehouse dedicates a certain amount of space on a long-term basis, it’s the best option for companies with a consistent inventory volume. Contracts usually last years so they work well for medium- and long-term storage needs.

Benefits of Contract Warehousing

For many customers, contract warehousing is the perfect balance between the total freedom and control of owning a private warehouse and the low cost and low involvement of using a shared warehouse. Some of the advantages of third party contract warehouse agreements include:

1. Lower Capital Investment

Consider that in New York City, it cost an average of $117 per square foot to construct a new warehouse or logistics center. The average newly built warehouse is just shy of 185,000 square feet, so constructing a new warehouse is typically a multimillion-dollar investment. While real estate costs are a little lower here in North Carolina, warehouse investments are too costly for most businesses to justify. Setting up an existing building for warehousing also requires investments in warehousing equipment like forklifts.

When you choose to contract your warehouse space, the warehouse space is readily available without the high cost of construction, renovations or equipment. When you hire a warehouse, you can use it for a shorter time frame to meet your current needs. When your contract is up, you can choose to contract for more space if needed without another significant upfront investment.

2. Lower Costs and Fees

Contract warehouse companies are experts at what they do. Often, they can develop strategies to make your storage, logistics and fulfillment more efficient, resulting in cost savings. For example, at Crown LSP Group, we can perform transportation and logistics services alongside value-added warehousing services. By keeping all these operations under one roof, where an expert logistics team can manage everything closely, you’ll save money and time.

Meanwhile, when leasing or owning a warehouse, the property usually comes with many fees and expenses. Utilities, building maintenance and property taxes can all add unpredictable costs to your monthly bills. When you choose a contract warehouse, all the costs you’ll incur will appear upfront in your written warehousing agreements. You can enjoy predictable overhead and share costs like utilities and maintenance with other contracted clients.

3. Value-Added Services

One excellent benefit of a contract warehouse over a public warehouse is that it can provide a dedicated workforce. While a public warehouse is mostly concerned with keeping its storage at full capacity, a contract warehouse knows it can rely on predictable storage needs and assign more resources to individual clients. For example, some companies need temperature-controlled storage facilities, which require expert monitoring from dedicated staff members. When you have a contracted staff committed to managing your goods, they can also offer other valuable services such as:

• Cross-docking: Cross-docking improves supply chain efficiency by reducing the time products spend in storage. It helps you get products to your customers faster and is extremely effective for companies in the consumer goods industry. For example, at Crown LSP Group, we can build personalized cross-docking solutions for your shipments. We’ll receive deliveries at our warehouse, organize them or break them down into smaller shipments right away, and send them out on the next available outbound trucks. That way, shipments spend less time in storage, which reduces handling, storage costs and inventory management needs.
• Pick-and-pack: Pick-and-pack is a complex e-commerce order fulfillment strategy where warehouse workers will pull items for many customer orders at once and then pack them all for shipment. This method lets you prepare e-commerce orders and get them ready to ship quickly, so you can guarantee faster delivery times. An e-commerce order fulfillment company like Crown LSP Group can develop an effective pick-and-pack solution for your warehoused products.
• Rework: If you ship in products from a manufacturer in another country, it costs a lot of time and money to send back damaged items that need to be reworked. Entering into a third-party warehouse agreement can help mitigate minor rework issues, such as reprinting labels or instruction manuals, replacing broken or missing components or repackaging items. This improves supply chain efficiency by taking care of product quality concerns right from your stateside warehouse.
• Palletization: A contract warehouse can also organize incoming shipments onto pallets or break down and rearrange products on existing pallets. Depending on your needs, Crown LSP Group can store your products on pallets for long-term storage or prepare them for their next destination.
• Advanced inventory management: E-commerce businesses and manufacturers that frequently ship goods in and out of their warehouses need to track what’s in stock and what they need to reorder. Contract warehouses can record valuable inventory data like real-time available quantities, current locations, serial numbers and manufacturing dates to streamline inventory management operations. Dedicated warehouse providers add value to inventory management with advanced warehousing support like helping you set a sustainable safety stock level for your products. Many companies find they need more safety stock to get ahead of potential supplier delays, and we can advise you on an amount that makes sense for you.
• Greater reliability: Many businesses choose to work with a contract warehouse so they can continue focusing on their core strengths. You can leverage the expertise of a dedicated warehouse, which can develop personalized solutions for your business. This partnership eliminates the growing pains of learning how to operate a warehouse internally. A contract warehouse dedicates a set amount of warehouse space and personnel to your business, so you can rely on having the storage space you need at all times.

Resolve Your Warehousing Concerns With Crown LSP Group

Crown LSP Group is flexible, reliable and committed to finding the solutions that work best for you. We recognize that while most businesses benefit from using a 3PL contract warehouse, every company uses these services a little differently. As your expert warehousing partner, we’ll act as an extension of your staff and personalize our solutions to serve your operation best.

We have the contact warehouse capabilities to accommodate several locations across the east coast. These include contact warehouse space near:

• Norfolk, VA
• Raleigh, NC
• Wilmington, NC
• Rocky Mount, NC

Learn more about contracting warehouse space through our third-party logistics services and reach out online to request a quote.

Request a Quote Today

To rake in consistent sales for your ecommerce business and remain profitable, you need more than a stunning website. You need a rock-solid and efficient ecommerce fulfillment strategy. By 2024 ecommerce will account for 21.8% of total retail sales worldwide. As more customers move online and ecommerce becomes very competitive, customers’ satisfaction will shift from product availability to speed and accuracy of order delivery. One poor experience and they may never return to your store.

According to a study by Retail TouchPoints, 88% of customers say they’ll pay more for same-day delivery. And Amazon set the standard for ecommerce fulfillment with their addition of the next-day delivery option. What does this mean for online businesses and the consumer goods supply chain?

To satisfy your customers, stay competitive and profitable, you need a reliable and effective order fulfillment plan. Discover what you need to know about ecommerce fulfillment below. Find out how to select a fulfillment strategy that suits your unique business needs and how ecommerce fulfillment services can satisfy your warehousing, transportation and distribution needs.

What Is Ecommerce Fulfillment?

Ecommerce fulfillment — also called order fulfillment — refers to the process involved in delivering online orders to customers. The entire process consists of several stages that include receiving and storing inventory, order processing, picking and packing items, delivering products to the final consumer, and handling returns.

There are various strategies for fulfillment and the method you adopt for your business depends on the following factors:

• The size of your business
• The volume of orders you process
• The nature of your products
• The size of your products
• The location of your customers

From receiving the order to handing off the product to your customer, the ecommerce fulfillment process has many moving parts, no matter the strategy you choose.

Top 4 Trends Influencing Ecommerce Fulfillment

Ecommerce fulfillment is undergoing a lot of changes. Here are three trends influencing ecommerce fulfillment now and moving forward:

• Increased significance of ecommerce fulfillment: As more customers prefer buying online and getting their orders delivered to their doorsteps, the efficiency and speed of order delivery will become a major ecommerce success factor.
• Rise in automation and robotics in fulfillment: As the demand for fast order picking, packing and delivery increases, robots and automation are helping to meet this demand.
• Increased adoption of augmented reality: More augmented reality (AR) in ecommerce order fulfillment is helping warehouse operators navigate products, pick orders and fulfill orders easily and making the landscape more competitive.
• Better decision-making with data: Customer and market data is helping retailers and 3PL companies make better inventory forecasting decisions. And businesses that gather and make use of data will win.

At Crown LSP Group, we provide the resources to help ecommerce businesses stay flexible and responsive to trends and changes in their customer and market needs.

Related: The Future of Warehouse Automation & AI

What is Involved in the Fulfillment Process?

Whether you partner with a 3PL ecommerce fulfillment company, work with a dropshipper or fulfill your orders by yourself, the process follows the same pattern.

The online fulfillment process starts from when a customer places an order on your ecommerce site to when you deliver the accurate order to the customer. Typically, it includes the following steps:

1. Receiving and warehousing inventory

This stage of the fulfillment process ensures you have the space to house your inventory to fulfill customers’ orders later on.

Inventory warehousing involves moving your products to an ecommerce fulfillment warehouse or a self-run warehouse — a process called inbound logistics —  and storing the products awaiting your customers’ orders. For small businesses, this could be a garage or a small store for storing products and accessing them to fulfill orders. But for a big and growing ecommerce brand that processes hundreds of orders daily, you need dedicated warehousing space or to partner with an ecommerce fulfillment center.

Effective inventory warehousing ensures the safety of your products. You can also consider your warehouse’s proximity to your customers for speedy and cost-effective order fulfillment.

2. Storing and managing inventory

This stage of the fulfillment process ensures you always have products on the shelf. Inventory management involves monitoring, forecasting and restocking inventory. The goal is to maintain an optimal level of product in the warehouse.

Inventory management is essential because too much inventory leads to poor cash flow, more payment for storage and the selling of outdated products. On the other hand, too little inventory leads to backorders and unsatisfied customers.

3. Tracking and managing orders

Order management covers everything about receiving and tracking orders from your customers. Proper order management involves integrating your sales channels — whether Shopify, Amazon, eBay or other merchants — with your warehouse management system to ensure real-time notification and processing of orders.

4. Picking, packing and shipping orders

The steps in the order fulfillment process involve picking, packing and shipping the right product to your customers. This stage in the ecommerce fulfillment process kicks in immediately once a customer places an order. Once the order is received, the correct product is picked from the warehouse, packaged and handed off to logistics for delivery. Proper fulfillment of online orders ensures picking and promptly delivering the accurate product.

5. Delivering products to consumers 

Order fulfillment is the most important part of the ecommerce process because it puts you in direct contact with your customers. According to a study, 54% of customers would not place an order because of high delivery charges and 25% of customers won’t place an order if the delivery will take too long.

Efficient and satisfactory last-mile delivery leads to happy customers and positive word of mouth. Those benefits translate to more customers and revenue for your online business.

Small businesses can easily pull this off with self-fulfillment or partnering with a dropshipper. But big ecommerce brands who want a predictable and accurate order fulfillment process can guarantee this with a third-party ecommerce fulfillment company.

6. Returning orders

Also known as return management, reverse logistics involves processing returned products, redelivering the product, refunding your customers and returning the product to the store for reselling.

Thirty percent of everything sold online is returned, either because of damage or wrong product delivery. How you handle reverse logistics influences customers’ satisfaction and their desire to keep buying from your store.

For example, 92% of customers say they would buy more from a store with a satisfactory return procedure. And 79% of customers say they appreciate free shipping for return products.

Ecommerce stores receive the most returns because customers often do not have physical contact with the product before buying. But a laid-out return policy can mitigate product returns for your business.

Return logistics can become complicated. While small ecommerce businesses can easily process returns in-house, big ecommerce brands would need to dedicate plenty of time and resources to effectively handling return products. One advantage of outsourcing the fulfillment process is that it frees you from this burden and creates more time for you to grow your business.

Considerations for Choosing a Fulfillment Strategy

The order fulfillment process you choose will depend on several factors. Each strategy will have its unique advantages depending on the following.

1. The size of your business

Smaller businesses or start-ups may not need a comprehensive order fulfillment strategy. They likely don’t have the order base to support the cost of outsourcing fulfillment.

However, if your business is scaling rapidly and you find order fulfillment challenging, dropshipping or partnering with a third-party logistics (3PL) company like Crown LSP Group can provide you with a cost-effective way to save time and money.

2. The type of products you sell 

The size and style of your products will directly affect your order fulfillment needs, especially when it comes to storage and shipping.

For example, products with hazardous materials have transportation limitations. Perishable items will have particular storage demands. The larger your items are, the more storage space you need and the more shipping may cost.

When choosing a fulfillment strategy, consider your product sizes and storage and shipping needs to fulfill them.

3. Your ability to keep track of your inventory

Inventory management includes tracking, storing, restocking and ordering new stock.

Selling out-of-stock merchandise could cost you a potential customer. However, ordering too many products could lead to unnecessary storage fees or a lack of storage space. If your items are perishable, this could lead to significant financial losses.

Dropshipping provides little to no control over inventory management, while a 3PL provider can take over inventory management so you can focus on marketing your business.

4. If you have warehouse space

Your choice of ecommerce fulfillment strategy might boil down to how and where you will store your products. Do you have the storage space for a reasonable stock level?

Small- to medium-sized businesses with smaller stock items may be able to store them in their basement or garage. Other times, the items may be too large or have specific temperature control needs. In those instances, outsourcing may make more sense.

Likewise, medium- to large-sized businesses with large order bases may benefit from partnering with a 3PL company as the cost of a bare-bones independent warehouse may not be financially lucrative.

5. How you will handle returns

As an ecommerce business owner, you will likely experience a high volume of returns, since customers cannot see the product before they buy. Customers love a solid return policy, so how you will handle returns is an important consideration. Processing returns includes providing a way for customers to send back damaged or unwanted items easily and for you to track the returns for stock planning.

If you manage returns in-house, you have control over the entire process, though it could be time-consuming, depending on the product type and the number of returns you receive. However, dropshipping affords the seller little to no control over the returns process and whether it will satisfy customers.

6. The cost of fulfilling orders

Your cost per order includes all costs associated with fulfilling an order, including fixed and variable costs, like the price you paid for the product, storage and shipping.

In some cases, outsourcing order fulfillment by dropshipping may make more sense if you want to keep the cost per order low as you won’t need to worry about the additional storage or shipping costs. You will only pay for the products you sell.

When you want more control over your products, in-house order fulfillment or partnering with a third-party logistics provider may make more sense.

Types of Order Fulfillment Strategies

The fulfillment strategy you adopt depends on your unique business needs. For big and growing ecommerce companies, there are several options including in-house fulfillment, dropshipping or choosing to partner with a third-party logistics company.

In-House Strategy

With in-house fulfillment, you do everything by yourself — warehousing, inventory and order management, order fulfillment and return management. You own your warehouse, purchase the needed insurance, software and equipment and hire and manage the staff needed. This process works well for small businesses but presents challenges for big and growing ecommerce brands.

Here are some things to keep in mind with an in-house strategy for your ecommerce business:

• Operating a fulfillment warehouse is expensive: For an ecommerce business processing lots of orders daily, you’d need significant warehouse space, warehouse staff, equipment and tools to operate an effective and smooth in-house ecommerce fulfillment strategy. You’d also need to purchase workers’ compensation, fire insurance, auto, professional insurance and other insurances to protect your workers and inventory in the event of an accident or incident. Those necessary extras require financial and managerial resources that can otherwise be used in expanding your business.
• Running a fulfillment warehouse demands time: Receiving inventory, storing, managing stock, packing and delivering orders accurately in-house demands excess time that can otherwise be used for marketing, working on your product or hiring the best talents for your business.
• Scaling in-house fulfillment is expensive and slow: Scaling an in-house fulfillment warehouse to meet your customer orders demands funds and takes time. To meet increasing customer orders even with a dedicated warehouse, you’d need to build or lease a larger warehouse, hire more staff and purchase the needed equipment. This process can take time and may not be fast enough to meet your growing customer orders. If sales drop, you’d end up paying for warehouse space and tools that you may never use.

Dropshipping

Most ecommerce businesses go for dropshipping as an alternative to a self-fulfillment strategy. With dropshipping, you don’t buy or store inventory. Instead, you simply put the product up for sale on your site. When you receive an order, you channel it to the dropshipper that operates a fulfillment center and delivers the product to your customer.

Dropshipping is a very fast ecommerce fulfillment method for small businesses, but it poses various challenges for large and growing businesses. With dropshipping, you have zero control over:

• Product quality: You do not control the quality of products delivered to your customers or the quality of services your customers receive. In cases of poor customer experience, you, not the fulfillment centers, bear the heat.
• Customization and branding: Since another company handles the fulfillment operations, fulfillment warehousing and order fulfillment, most times you do not control the customization and branding of the product.
• Inventory: You do not control your dropshipper’s stock level. If the dropshipper does not have the inventory needed to fulfill your customers’ orders, you may leave a lot of money on the table and grow a pile of disappointed customers.

Third-Party Logistics (3PL)

With a third-party fulfillment strategy, a 3PL provider handles all aspects of the order fulfillment process. This includes storing and managing your inventory, receiving and fulfilling customer orders and handling return logistics.

Partnering with a third-party fulfillment company ensures your inventory is properly stored and managed. You get up-to-date information on your inventory to ensure you have the right amount to meet your present and future customer demands.

Some of the common considerations when choosing a 3PL fulfillment strategy include:

• Cost-effectiveness: With a 3PL company, you only pay for the space you use and for orders processed. All other expenses are covered by the 3PL order fulfillment center and factored into your fees.
• Easy to scale: As your sales and inventory volume increase, you can easily pay for more space and staff. If sales decline, you can easily cut down on your expense. At every point, you pay as you use.
• Versatile warehouse space: You can easily move from one fulfillment warehouse to another to get closer to your customers, deliver faster and operate more cost-effectively.
• Access to skilled professionals: A 3PL company hires and manages warehouse and order fulfillment professionals so that you do not have to.
• Time to run your business: Outsourcing your order fulfillment carves out more time for you to focus on marketing, stocking the best quality product and growing your business.

Signs That You Should Outsource Fulfillment

Are you wondering if your ecommerce business could benefit from outsourcing order fulfillment? You may only need to outsource one or a few aspects. Our ecommerce fulfillment guide offers a few considerations to keep in mind.

1. Unpredictable sales cycles and seasonality

Frequent unused storage space, excess products with no room or unpredictable sales cycles can wreak havoc on your ecommerce business. Plus, an unfulfilled order could negatively impact customer retention. If it’s challenging to keep up with stock management, it may be time to consider outsourcing fulfillment with a 3PL provider.

A third-party logistics company will manage stock and track order trends to accurately predict the type and amount of stock you will need. Additionally, data insights from a 3PL provider can help you forecast sales dips so you don’t end up splurging on products you may not sell at certain times of the year.

2. Expansion of your target customer base

Nationwide and international shipping expenses can quickly add up, especially if you have a large, spread-out customer base. If you plan to expand your ecommerce business and ship across the U.S. or internationally, outsourcing fulfillment with a third-party logistics company may be the right order fulfillment solution.

A 3PL provider like Crown LSP Group can quickly and efficiently open a warehousing center nearer to your target customer base. We reduce shipping costs and ensure you have the stock available to support growth.

3. Costs that are challenging to predict or control

Most retail businesses have slower sales seasons, including ecommerce businesses. Depending on the products you sell, predicting or controlling costs associated with inventory and order fulfillment may be difficult.

For example, during slower months, you may not need as much storage space for your inventory. Unfortunately, unused warehouse space is lost money. Conversely, you may have an unexpected surge in sales without the stock, storage space or warehousing personnel you need to fulfill orders efficiently.

A third-party logistics provider can cost-effectively accommodate any unexpected dips or surges in order, storage and personnel demands.

4. Overstocking or understocking your inventory

Assuring you have the necessary kind and amount of stock at the right time is paramount to long-term business success. Overstocking could lead to increased storage costs while understocking could lead to a dissatisfied customer base if it happens too frequently.

It may be time to outsource order fulfillment if you’ve found it challenging to predict the amount of stock you need at specific points in the year. A 3PL company can monitor your inventory, track your orders and predict the amount and kind of stock you need and when.

5. Returns are becoming too hard to handle

Returns are inevitable for ecommerce businesses. There are many reasons your customers might return their products. The item could be damaged or different than they expected. Either way, if the seller is handling returns in-house, they are responsible for customer support, processing the return and restocking or updating inventory data.

Handling returns can quickly become time-consuming and unmanageable, especially if your company processes hundreds of orders or is scaling rapidly. A third-party logistics company can provide customer support, the process returns and manages inventory updates to dedicate your time to other aspects of your ecommerce business.

6. Not enough resources to handle the demand

When you can’t fulfill orders or meet customer demands, your business might suffer. Suppose you’ve found your company doesn’t have or can’t reasonably afford the warehousing facilities, technology or the number of personnel necessary to support a rapid influx of sales. In that case, it is time to outsource your ecommerce order fulfillment.

Whether you’ve experienced an unexpected surge or decline in sales, a third-party logistics provider will help you meet fluctuating storage needs, manage stock and have the staff to fulfill your orders and returns. You will only pay for the resources you need at any given time with the help of a 3PL provider.

7. You can’t focus on running your business

You must focus on the key responsibilities of successfully running an ecommerce business. Outsourcing will free up time, money and resources you can funnel into critical elements like marketing and customer relationship management. You can also maintain superior customer service.

Work With a Trusted 3PL Provider Today!

As a leader among third-party logistics providers, Crown LSP Group is your true distribution solution company. We provide customized supply chain services like warehousing, transportation and logistics, value-added services and on-site warehouse operations for your unique business needs. Our North Carolina location ensures cost-effective inbound logistics and speedy delivery to your customers anywhere in the United States.

We have been providing the best warehousing and last-mile delivery services for retailers like you for over 30 years. We provide all the inventory management and order fulfillment resources you need to run a successful ecommerce business. Our goal is to become your long-term logistics partner.

We know your business needs are unique. We’ll work with you to provide a customer ecommerce fulfillment strategy that benefits you and your customers in the long and short term.

Contact us today to discuss your order fulfillment strategy and request a free quote.

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The COVID-19 pandemic has brought many changes to our daily lives. As a result, businesses have had to rethink how they perform their operational tasks while serving their customers’ needs safely.

Warehouses are no different. With the need to adhere to warehouse guidelines from the Centers for Disease Control and Prevention (CDC), everything from creating workplace safety plans to maintaining supply chains has been altered during the COVID-19 pandemic. These safety measures allow customers to continue receiving the services they require while everyone does their part to limit transmission.

How Does COVID-19 Affect Supply Chains?

Because of the challenges posed by COVID-19, consumers are more eager than ever to choose delivery services that drop off packages at the door. Because most customers understand the sacrifice front-line workers are making — including delivery drivers — most are more than willing to pay the added delivery fees.

Due to the increased requests for product delivery, stores are noticing their traditional logistics networks can no longer meet their expanding customer demands. Subsequently, these stores are turning to third-party logistics (3PL) providers for solutions.

Third-party logistics providers have implemented a wide variety of warehouse management systems (WMS). These systems improve picking processes and ensure workers can maintain social distancing requirements and other safety measures prescribed by the CDC.

Related Article: Benefits of a Third-Party Logistics (3PL) Provider

6 Warehousing Management Trends Due to COVID-19 That Are Here to Stay

Due to the increased demand for warehousing and transportation services during COVID-19, companies recognize the need for creative solutions to handle their additional orders while still keeping everyone safe.

Technological advancements in warehouse management systems mean less worker involvement in warehousing operations is required. Business owners see the value in 3PL providers as a safer alternative to paper-based, pre-pandemic logistic services.

How has COVID-19 impacted warehousing and which areas of the supply chain have seen the changes? Here are some ways 3PL providers have adapted to warehousing in a pandemic to meet the demands of an increasingly logistics-dependent marketplace:

1. More Inventory on Hand

When fulfilling customer requests, nothing is more important than having the needed materials and supplies available on hand and ready at a moment’s notice. The problem with storing materials on-site is that they take up valuable real estate that could be better used for more productive means, like manufacturing or assembly.

Numerous 3PL providers introduce a convenient solution to this problem by allowing customers to rent floor space in their facilities. The combination of added storage space with the ease of on-demand shipping makes this service extremely beneficial to warehouses facing capacity constraints.

These 3PL providers have also invested in advanced warehouse management systems. The providers help speed up sorting and shipping and offer improved security monitoring, advanced fire protection systems and temperature- and humidity-controlled spaces. For example, at Crown LSP Group, we use 3PL Central Cloud-Base WMS, allowing us to provide 24-hour video security monitoring for enhanced warehouse safety.

2. Rise of Automated Warehouse Technology

Warehouse automation has seen massive improvements in recent years — mostly in warehouse management systems, which synergize multiple pieces of equipment through software control.

Warehouse automation systems use material handling equipment (MHE) such as conveyors and robotics. While automation provides a significant improvement over manual tools, its true potential is fulfilled by a fully connected automated warehouse management system. Warehouse management systems sync numerous sensors to control and position equipment. The warehouse management systems at Crown LSP Group sync together various sensors to control and position machinery and catalog stored goods to keep them organized and easily accessible.

With robots capable of handling materials and products safely and efficiently — and software systems ensuring items arrive on time and at their correct location — it’s easy to see how the rise of warehouse automation has been such an industry game-changer. Without these technologies, the onset of COVID-19 would have made safety and efficiency protocols that much more difficult for warehouses.

3. Customized Strategies

Third-party logistics providers like Crown recognize every business requires a unique solution to ensure its operational needs are met. From custom warehousing solutions to immediate processing and shipping of materials and products, we can tailor our warehouses and delivery systems to meet any business’s specific requirements.

Storage space is a pain point for most small to medium-sized businesses. This issue is why 3PL providers offer a wide range of storage spaces and short-term and long-term contract lengths to address seasonal trends. Storage arrangements range from rack storage to floor space to bin storage, depending on the goods being warehoused.

Advanced 3PL providers seamlessly integrate warehouse management system (WMS) software with their flexible delivery services to ensure your materials and products are available to be shipped to any location, worldwide. This provides a level of convenience and reliability that will certainly remain in warehousing post-COVID.

4. Increased Warehouse Capacity

When selecting the best location to operate your business, you have many considerations. From employee desirability to customer interaction, location can play a critical role in any business’s success.

Because commercial rental costs are at an all-time high, it makes sense to choose a location that appeals to your employees and is within a reasonable range for customer walk-ins. This consideration means the trade-off between location and floor space is often a tough decision to make. However, it’s made much simpler with a third-party logistics provider’s help.

Businesses using 3PL support don’t have to worry about leasing or purchasing properties. Partnering with a contract warehouse takes this headache off the manufacturer. If their products can be shipped quickly and reliably from a third-party location, they no longer need to keep goods on-site.

5. Greater Reliance on 3PLs

COVID-19 has demonstrated that customers and businesses are more eager than ever to have their deliveries dropped off safely at their front door instead of picking them up in person. This phenomenon has created a boom in delivery requests worldwide and has substantially strained the usual delivery methods most businesses use.

To solve this problem, more companies are seeking 3PL providers to handle their order fulfillment needs. The conveniences offered by 3PL enterprises extend far beyond storing and delivering items.

With benefits ranging from increased floor space to added security and damage protection to highly efficient storage and shipping solutions, third-party logistics providers are becoming more prevalent as partnering businesses. Business owners will continue using 3PL providers for distribution and warehousing even after COVID-19 because of the convenience and cost savings.

6. Increase in Temperature-Regulated Storage

Many businesses use materials requiring special storage conditions to ensure they remain intact and undamaged. Similarly, once products or parts are assembled, they must be kept in conditions that prevent quality degradation.

Crown LSP Group’s warehouses come with temperature and humidity control, ensuring your sensitive products or materials remain in their ideal condition for an extended time. Additionally, our facilities are fully outfitted with fire protection systems to ensure your contents are always safe and ready for you.

Many materials such as metals or paper products suffer degradation when exposed to higher humidity levels. Sometimes even a slight increase in humidity can cause the metal to corrode or paper products to soften. If these items are left unattended long enough, they can be totally destroyed from exposure.

Environmental control systems, such as those offered by 3PL providers, are essential for companies that require sensitive materials to remain in their original condition for manufacturing or sales.

Plan for Success With Crown LSP Group

The benefits of third-party logistics and warehouse providers have become more significant since the COVID-19 pandemic’s onset. The solutions they implement to store and ship materials, products and supplies safely and efficiently make them valuable, time-saving additions to any business.

With supply chains being weighed down by the increase in customer demands, it‘s important to choose a 3PL provider that can offer unique warehousing solutions to fit your storage and logistics needs.

Crown LSP Group has multiple warehouse locations strategically located throughout North Carolina and Virginia. We can ship orders to three-quarters of the U.S. population within 12 hours, making us the top 3PL provider on the East Coast. Contact us for warehousing space near and around:

• Norfolk, VA
• Raleigh, NC
• Wilmington, NC
• Rocky Mount, NC

For a convenient and reliable solution for your East Coast logistics and warehousing needs, contact Crown LSP Group today and request a free quote.

Request a Quote Today