Outsourcing your order to a 3PL company can benefit your company in many ways and support you especially in peak season. Let’s see how you can benefit from shared warehousing.
In a shared warehouse, you only pay for the space and resources you utilize for your goods. The main benefits come from the fact that the availability of space and resources are flexible- gives you complete freedom for your volume and operational needs of goods, especially during peak season. Let’s see how shared or public warehouse is the best option during peak season:
Flexible Space Requirement-
Suppose you need 10,000 sq feet of warehousing space in the holiday season. But as the peak season approach and your estimation went a little wrong with increasing order volumes, and now you need to expand that space to 15000 sq. feet. Your 3PL company will help you to easily expand as much space you need. And if your space requirements go back down to 10,000 sq feet again after the holiday season, your 3PL will scale downward as per your need.
Shared warehousing is also a good option for companies with their own warehouse but needs space and resources during the peak time of months.
More Staff for More Workload
Just as the need for space and resources tends to increase during the holiday season, so does the labor demand increases to support customers and workload. Most of the 3PL company hires new staff for a temporary period of time for everything from pick and pack to handling resources and customer service. It is very important to ensure that the hiring staff is right for your operation. You must discuss the qualifications and vetting processes with your 3PL to make sure that your supply chain quality is preserved.
Check Your Expenses
Let’s say that you have an e-commerce business that nearly doubles its sale around the holiday time. If you are handling all the operation both peak and non-peak season yourself, you would have to buy your own warehouse or rent a space for your own fulfillment. Space can be fully utilized in the peak time but during the non-peak periods, space will not be used to its capacity. The costs of finding resources, training temporary workers, and other handling costs can put a large strain on your finances. Shared warehousing is a better option for saving costs, you simply pay for what you need when you need it.
At Tenaxx, we offer a wide range of services including transloading, cross-docking, and shared warehousing. Contact Tenaxx Logistics today to learn how our expert staff and facilities can support you in the time of peak season.