A big part of supply chain management is to keep up a constant and unbroken flow of all the goods involved – raw materials, machinery, tools, finished products, and packaging. Warehouses help supply chains in storing the procured items until it is time for them to be sent to various locations. A warehousing company is meant to oversee their safe storage and managing adequate inventory so that orders can be fulfilled as per business demand.
It’s the responsibility of the warehousing company to ensure that the cargo shipments efficiently reach distributors, retailers, end-customers or other parts of the supply chain network. At the same time, the overheads for the businesses using these services must be under control from the time cargo comes into the warehouses right up to the point of shipping. Especially if you are a large business with wide-spread operations, you will benefit from the services of a warehousing company as you may need warehouses to be located in multiple, strategic places to quickly meet your shipping needs.
You’re not only concerned about efficient storage of your precious consignments but also want a warehousing company you can rely on for a variety of needs. This could mean proper handling of the materials and adequate stock of the goods to be shipped, sorting cargo storage for easy access, and keeping track of your orders from the time the goods reach the warehouse and all the way up to their time of delivery.
Pain-points for a warehousing company
The warehousing needs in modern supply chains have changed dramatically. Today, your business requires a warehousing company that has adequate capabilities and expertise to handle modern-day pain-points of warehousing.
Recent years have seen major changes in end-customer expectations. Customers are less willing to compromise on delivery timelines or quality of their orders. Nevertheless, it’s the warehousing company’s responsibility acting on your behalf, to ensure customer satisfaction at all times. A competent, future-ready warehousing company will have well-managed inventory and storage management solutions that keep you on top of order fulfilments, even in peak season.
The hallmark of such a warehousing company is maintaining the ideal stock levels of your cargo. They avoid overstocking so that you don’t incur higher expenses. Nor do they understock as it can adversely impact your sales.
Cost-effective space management is another major pain-point today. At any given point in time and based on the kind of cargo being handled, the warehousing company must have optimal space for physically storing all the goods pending shipment. Otherwise, it can result in unnecessary overheads.
Today’s regulatory landscape for supply chains is becoming more complex and demanding. You must have accurate traceability of your shipments as per the rules and stipulations of regulators across logistics processes including warehousing. As non-compliance can result in heavy fines and reputational damage to your business, you must insist upon these strict terms with your warehousing company as well.
Recent years have aggravated the labor shortage along supply chains operating in many parts of the globe. The warehousing company must plan better to anticipate future demands and maintain a sufficient supply of labor to ensure timely order fulfilment while remaining competitive.
A three-pronged strategy for a modern warehousing company
- Recruiting tech to augment your warehousing company
The role of technology has gone up dramatically in enabling various aspects of the warehousing company to make them streamlined, high-performing and profitable.
Using emerging technologies like AI or connected devices and understanding how a warehousing company can apply them in warehousing solutions like structured storage, easy search, tracking etc. will make them more competitive. For example, they could look at smart solutions using advanced tools and apps to optimize space. Allocation of space for cargo can be done in a planned manner so that space and inventory are both managed in the warehouse, cost-effectively.
Your business must look for a warehousing company which is equipped with the proper warehousing tools and technologies as well as the knowledge and skillset to run the warehouse management system and supporting tools.
- Leveraging data for communication
Data can be a great enabler for a warehousing company. Warehousing and distribution processes must talk to each other constantly to meet the intense requirements of businesses today. Using advanced tools and data-driven insights will help improve tracking, decision-making around space optimization, and inventory aspects of order fulfilment as per schedule. At the same time, the warehousing company can remain in sync and responsive to specific demands of your business.
- Tailoring storage and distribution services
Supply chains are under tremendous pressure to be ready and resilient to accommodate future demands and uncertainties in the world of business. Moreover, every business has unique logistics and warehousing needs because of the variations in goods or materials or equipment they deal with. Warehousing needs are dynamic and require the warehousing company to be prepared for different contingencies with approaches that suit diverse business needs. Their approach must be tailored for different aspects of storage, packaging, and order fulfilment.
For example, according to the nature and kind of cargo, its packaging and shipping can be customized by the warehousing company so that no damages occur. Doing so can significantly reduce the waste generated during the warehousing processes and improve the sustainability of the warehousing operations.
Another classic challenge is of fluctuating demand. Certain goods have seasonal popularity and more space will be required to stock them during those times. Or the warehouse has too much unoccupied space in off-seasons. Also, certain perishable or cargo need special storage environments. In such situations, you may encounter unexpected and additional overheads.
The warehousing company can offer to customize and plan warehousing services as per your unique needs while using the available space and capacity optimally. This will drastically improve the overall efficiency and cost-effectiveness of the warehouse operations and better suited to your budget as well.