The Value of Public Warehousing as Part of the Supply Chain
Public Warehousing is a critical component of the supply chain, and as technology integration of the supply chain continues, so does the role of the warehouse as part of it.
A few Supply Chain Managers with whom we’ve spoken over the years have shared that they view warehousing as a part of the supply chain which adds cost without adding a lot of value. It’s not an uncommon sentiment, especially in the scenario where products being stored are raw materials or bulk items with no real urgency to move.
In today’s warehousing space, however, there’s a great deal of value to be found as it relates to the supply chain, especially for businesses whose products are regularly cycled.
Public Warehousing Value in the Supply Chain
Much of the value inferred by Supply Chain Managers will largely depend on the types of products being stored. Products with variability in demand, seasonality, attached promotions, service requirements, etc. will realize the greatest value.
Modern public warehouses offer increased efficiency in the supply chain by adding ancillary services one might not think a warehouse capable of offering. These (can) include:
· Labeling
· Packaging
· Branding
· Assembly
In addition to offering these services, even greater value is realized because they can be utilized in an “on-demand” capacity. Product can be stored, assembled, and shipped as demand dictates. By incorporating the warehouse in this fashion, the supply chain is streamlined and more efficiently utilized.
Value in Transportation
One of the areas most often overlooked in the supply chain as it relates to warehousing is transportation. Supply Chain Managers often ascribe transport cost to the client and fail to consider indirect transportation cost reduction.
Rather than only looking to the carrier contract and requesting discounts, Supply Chain Managers can (and should) look at the public warehouse as a way to consolidate and reduce transportation costs. When strategically utilized, public warehouses offer the ability to move product to end users less expensively. Whether it’s an LTL, truckload, or rail shipment, a good public warehouse will be able to look at how best they’ll be able to meet the transportation needs of their clients.
Long and Short-Term Solutions
A typical corporate supply chain will incorporate warehousing in some form or fashion. Whether it’s company-owned (private), public, or owned and managed by a 3PL, it’s a necessary function.
There are times and circumstances when supply chain managers will need additional space. It may be a new product launch or a seasonal spike. It could be a bulk purchase on parts manufactured overseas. In cases like these, public warehouses are an excellent option to augment the primary warehouse. They’ll likely be able to not only accommodate the demand, but will also be able to offer short-term agreements. Depending on location and transportation services, secondary short-term warehousing may prove to be a great long-term option as well.
Maximize Value by Partnering With the Best
The main objective of a value-added public warehouse is to store, pick and pack, transport, and ultimately deliver ready-to-use products to their destination damage-free.
As a public warehouse provider, Amware understands this objective and works to meet and exceed client expectations. As a 3PL, Amware is equipped to handle warehousing, pick and pack services, as well as transportation. Whether it’s full truckload, LTL, or rail, Amware can handle it.
For more information on public warehousing services, contact Amware today,