Warehouse Logistics Strategies for a Better Contract Logistics Experience

January 24, 2024

3PL Warehouse and Contract Logistics Management

The cost of contract warehouse logistics may vary, but it’s all part of the revenue share spent on outside partnerships. Consider this, according to Supply Chain Management Review, FMCG companies usually outsource their supply chain management to third-party logistics providers (3PL) and spend 7.5% of revenues on such services.

Contract logistics, or leveraging a 3PL’s existing customs bonded warehouses and distribution centers, is an area of fulfillment that shippers should prioritize, but what else is possible?

Some may own facilities, and even with a plan to work with a 3PL, it helps to know a few things about improving your use of contract logistics. 

According to Waredock, the “contract logistics market is expected to grow at a compound annual growth rate (CAGR) of 5.3%.” Warehouse logistics play a pivotal role in the overarching framework of contract logistics, serving as the backbone of product storage, management system, and distribution. Careful coordination of these elements ensures goods are received, stored, and dispatched efficiently, minimizing delays and reducing costs. Contract logistics providers rely heavily on advanced warehouse logistics to meet clients' dynamic demands, adapting to supply and demand fluctuations with ease and flexibility.

The Challenges of Warehouse Logistics

The landscape of warehousing distribution faces challenges, ranging from managing complex inventories to accommodating rapid shifts in consumer behavior. Companies often grapple with optimizing warehousing and distribution, floor space, ensuring timely order fulfillment, and integrating new technologies.

Moreover, maintaining high safety standards while keeping operational costs low adds to the complexity of managing a modern warehouse.

Warehouse logistics encompasses various processes in managing the movement and storing of goods within a warehouse, from the moment they enter until they are dispatched. This function proves crucial in contract logistics as it directly impacts the efficiency and effectiveness of the supply chain, influencing customer satisfaction and the bottom line.

Choose a Partner That Prioritizes Inventory Controls

The logistics of a warehouse is the cornerstone of an adequate inventory and import control system, ensuring that stock levels are maintained at an optimal balance to meet demand without incurring excess holding costs. This involves precise forecasting, regular inventory counts, and strategic stock rotation procedures.

Evaluate the Provider’s Warehouse Layout and Design

The physical layout and design of a warehouse space significantly impact operational efficiency. A well-planned layout allows for a streamlined flow of goods and warehouse management, reducing handling times and potential bottlenecks.

Focus on Your Overall Strategy and Team Development

Adopting effective picking and packing techniques can minimize errors and speed up the distribution process. A skilled and well-trained workforce is essential to execute warehouse logistics strategies effectively. Continuous training ensures that staff stay up-to-date with the latest technologies and practices, fostering a culture of efficiency and safety.

Always Leverage Integrated Tech for Visibility

Integrating advanced technology systems is essential for modern warehouse logistics. These systems facilitate real-time data collection, process automation, and enhanced communication across the supply chain. Implementing efficient storage and retrieval systems, such as automated racking and conveyor belts, can significantly speed up the handling of goods, reducing labor costs and enhancing throughput in warehouse operations. Streamlining receiving and put-away processes ensures that incoming goods are quickly and accurately accounted for and placed in the appropriate storage facilities, setting the stage for efficient operations.

Leverage Data Analytics Across Your Tech Stack

Utilizing real-time data analytics and reporting tools allows for better monitoring of key performance indicators and facilitates proactive warehouse operations management. Fostering collaboration with suppliers and customers through shared platforms and communication channels leads to a more responsive and transparent supply chain.

Take Advantage of Automation Where Possible

Deploying automation and robotics in warehousing and distribution reduces manual labor, increases accuracy, and improves safety, leading to a more efficient operation. Leveraging IoT applications for inventory tracking enables continuous monitoring of stock levels and environmental conditions, optimizing inventory management and warehousing distribution. Utilizing AI for demand forecasting and inventory optimization allows for more accurate predictions of customer demand and smarter inventory decisions.

Ensuring Warehouse Safety and Security

Adhering to industry regulations and standards is non-negotiable for ensuring the safety and security of warehouse operations. Conducting regular risk assessments and developing mitigation strategies are critical for minimizing potential hazards and disruptions. Investing in employee training and enforcing safety protocols protects staff, goods, and equipment and upholds the integrity of warehouse operations.

Elevating Contract Logistics through Modern Warehousing and Distribution Strategies

From inventory management to the adoption of cutting-edge hi-tech logistics, these strategies are integral for navigating the complexities of modern warehousing distribution. Implementing robust warehouse logistics strategies is not just a matter of operational efficiency; it's a strategic imperative that can define the success of contract logistics services.

Streamline your warehouse strategy by contacting Crane Worldwide Logistics and requesting a quote today. From Columbus to Cork, Crane Worldwide has warehouse space available to serve your business. 


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