Integrating Warehousing and Transportation
There’s a lot to be said for specialization and focus, especially as it relates to business. Dilution of focus can be costly for businesses as they stretch resources too thin trying to be everything to everyone. There are instances, however, where certain services marry well. Such is the case with transportation logistics services (warehousing and freight shipping). While it might seem like common sense to integrate these services, the transportation logistics industry is still quite fragmented. It’s nobody’s fault. It’s just the nature of the industry.
For example, a company that might use us to warehouse their products won’t always use us to transport those products. Why? Because in many cases, the products leaving the warehouse are going to the end-user by way of their preferred shipping method. In many cases, our warehousing client doesn’t directly control how goods are transported from the warehouse. There are instances, however, when the warehousing customer controls the movement of goods from the warehouse. For example, they might need to move several pallets to a distribution center or direct to an end-user. When applicable, working with a 3PL like Amware that offers both warehousing and freight transportation can make a lot of sense and save a lot of money. Here’s how:
- Efficient Processes Under the Same Roof: When warehouses and trucks are owned by the same company, it’s easy to see how one might benefit from integrating storage and transportation
- Fewer Cooks in the Kitchen: In other words, the higher the number of parties/departments/entities involved, the higher the potential for difficulties; generally, issues can more quickly and easily be resolved when everything is handled in house
- Time is Money: Another cliché that applies to integration; response times are improved when managers and staff members are working together in the same location, and time-efficient responses ultimately lead to higher customer satisfaction
- Administrative Savings: When warehousing and transportation are integrated, the costs of administration can significantly decrease
- “Custom” Service: With integrated services comes a heightened ability to streamline picking, packing, and timing of deliveries
- Lower Costs Overall: Effective communication between integrated, on-site departments results in enhanced warehousing and transportation efficiency, with apparent improvements seen by the end customers, and increased profits
With warehouses in Cleveland ideally located within a day’s drive to over 80% of the country, Amware offers full-service warehousing and transportation services.
Contact us to learn more about how integrating warehousing and transportation services can add margin to your business today.