Third-party logistics, also known as 3PL, is a critical aspect of today’s supply chain. 3PL allows smaller or emerging companies to outsource their logistics to companies who are ready to serve, adding value to operations from end-to-end.
In addition to logistics and distribution, many 3PL companies also provide services like packaging, kitting, and warehousing, helping organizations scale and improve service levels without significant investment into new infrastructure
On-Demand Warehousing vs. 3PL: What’s The Difference?
While on-demand warehousing offers many of the same services as a traditional 3PL service, its business model is more cost-effective, flexible, and agile. In today’s ever-changing and unpredictable business landscape, there is a real and present need to keep costs down, add value, and provide the best possible service to your customers and vendors.
So, let’s look at some of the many ways that on-demand warehousing is smarter than traditional 3PL.
The Space You Need, When You Need It
While 3PL ties companies into a commitment for space or timeframe, on-demand warehousing leverages available space when and if required. Instead of paying for space you might not use—or running out of space during crunch times—you pay for what you need when you need it.
Location, Location, Location!
Traditional 3PL services are usually located at distribution or transportation hubs, but on-demand warehouses can be found just about anywhere. This could be a significant advantage for you when entering new markets or partnering with new manufacturers as your lead-time is shortened, and customer service improves.
Simplified Reporting and Tracking
Mismatched inventory systems between your company and the 3PL potentially cause inventory opacity, resulting in misplaced shipments and lost inventory. Without a lot of time and diligence on your part, if there are issues, you might just have to write off the loss.
With FlexHouse on-demand warehousing, the Warehouse Management System portal allows item-level transparency of all parts or pallets in storage. Inventory visibility enables improved business processes from the factory floor to the customer’s door and all points in-between, ensuring complete control over every aspect of your business.
Transform Your Warehouse Into a 3PL
Flexible / on-demand warehousing allows warehouse operators the option to function as a 3PL service themselves. If you have empty real estate in your warehouse, you can make the most of it and improve your bottom line by partnering with an on-demand warehousing company whose mission is to keep that space occupied.
Special Requests
Do you have a unique space? On-demand warehousing accommodates a wide range of unusual space needs. Operators can offer, and businesses can request any special warehouse requirements as needed, such as minimum height, size, temperature and storage conditions, or bonded status.
Improved Communication
Leveraging the Warehouse Management System, communications between operator and business improve as a result of greater accuracy and accountability. Processes are completed as expected, and no matter where you base your operations, you will enjoy the peace of mind that you get from knowing that it’s “business as usual” on the warehouse floor.
Do you require on-demand warehouse space, or do you have unused space you want to monetize? Fill out our online form and tell us about your needs. We’d love to show you how we can help you grow.