{"id":1272,"date":"2015-02-06T15:23:26","date_gmt":"2015-02-06T20:23:26","guid":{"rendered":"http:\/\/www.xtl.com\/?p=1272"},"modified":"2020-08-31T20:28:24","modified_gmt":"2020-08-31T20:28:24","slug":"top-10-reasons-outsource-warehousing-operation","status":"publish","type":"post","link":"https:\/\/www.xtl.com\/portal\/top-10-reasons-outsource-warehousing-operation\/","title":{"rendered":"Top 10 Reasons to Outsource Your Warehousing Operation"},"content":{"rendered":"

Here\u2019s a list of the top 10 reasons why businesses outsource warehousing operations to reduce costs and make their businesses more competitive.<\/p>\n

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  1. 1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Focus on your core<\/strong><\/li>\n<\/ol>\n

    If warehousing and shipping isn\u2019t your core business, then outsourcing your warehousing operations to a 3rd<\/sup> Party warehouse often results in greater focus on core business activities like sales, marketing and new product development.<\/p>\n

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    1. 2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Risk Reduction<\/strong><\/li>\n<\/ol>\n

      Warehousing and shipping comes with all kinds of risks; from financial risk of inventory loss and damage to possible injury of your workforce.\u00a0 Outsourcing your warehousing and shipping operation typically results in less business risk for you.<\/p>\n

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      1. 3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Better Systems and Performance<\/strong><\/li>\n<\/ol>\n

        A 3rd<\/sup> Party Logistics warehouse\u2019s main business is warehousing and shipping products.\u00a0 They have systems and processes suited to do just that.\u00a0 Typically, their investment in technology specifically related to manage inventory, pick, pack and ship is greater than the average business where this operation is not their core business.\u00a0 By outsourcing to a 3PL Warehouse you can take advantage of their leading edge technology without the huge investment!<\/p>\n

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        1. 4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Cost Reductions in Storage<\/strong><\/li>\n<\/ol>\n

          Typically, outsourcing your warehousing operation to a 3PL Logistics company results in an overall cost reduction.\u00a0 Here\u2019s why:\u00a0 Most businesses have cyclical sales.\u00a0 That is to say sometimes they need to carry more inventory than others.\u00a0 So, if you are taking care of your own shipping and warehousing you have to own\/lease capacity for your peak inventory.\u00a0 Even if that only happens once per year.\u00a0 A 3PL has the ability to mix and manage different customers with different peaks in their business.\u00a0 Therefore, you only have to pay for what you use.<\/p>\n

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          1. 5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Cost Reduction in Labour<\/strong><\/li>\n<\/ol>\n

            Much like warehouse space capacity, labour usage for a typical warehouse has peaks and valleys.\u00a0 If you\u2019re running your own warehouse, you need to staff for the peaks and then have less than optimal labour usage when you\u2019re not busy.\u00a0 If you choose to outsource to a 3PL then the labour a 3PL uses is spread of many customers, reducing slack time and waste.<\/p>\n

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            1. 6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Better use of Capital<\/strong><\/li>\n<\/ol>\n

              Warehousing is an expensive proposition in terms of capital and investment.\u00a0 If you\u2019re like most business, you fight for every dollar of capital for investment.\u00a0 If you\u2019d rather invest your precious capital in developing new products or buying new machinery that gives you a competitive advantage, then 3PL warehousing is for you.\u00a0\u00a0 Because you only pay for what you use, it\u2019s an expense, not a capital investment.<\/p>\n

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              1. 7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Economies of Scale in Shipping<\/strong><\/li>\n<\/ol>\n

                Because 3PL\u2019s ship for a variety of customers, that volume of shipments are pooled together allowing the 3PL Warehouse to get better shipping rates on your behalf.\u00a0 You save based on their larger volume of shipments.<\/p>\n

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                1. 8.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Agility<\/strong><\/li>\n<\/ol>\n

                  If you\u2019re business suddenly grows or shrinks, this has a huge impact on your investment in storage space and your human resources if you\u2019re managing your own warehouse operations.\u00a0 It takes time to ramp up or slow down.\u00a0 You may miss market opportunities while you\u2019re building and hiring.\u00a0 With a 3PL you have access to instant capacity.\u00a0 This makes your business more agile and responsive to the market.<\/p>\n

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                  1. 9.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>Choice of Location<\/strong><\/li>\n<\/ol>\n

                    When you choose to outsource warehousing and operations to a 3PL, you have a choice of location.\u00a0 You no longer have to have your warehouse attached to your head office geographically.\u00a0 You can choose a 3PL that makes geographic sense where it\u2019s optimal to serve your customers.\u00a0 This typically results in savings from shipping operations and better customer service.<\/p>\n

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                    1. 10.\u00a0\u00a0 <\/strong>\u00a0<\/strong>Improved Service<\/strong><\/li>\n<\/ol>\n

                      Because a 3PL warehouse\u2019s sole business is to pick\/pack\/ship, they are specialists.\u00a0 They have the systems and people to excel at this operation.\u00a0 Most business that chooses to outsource their warehousing operations experiences an improvement in customer service as a result.<\/p>\n

                      XTL Distribution has warehousing operations in Toronto and Montreal with over 75 years combined experience in warehousing and distribution<\/a> operations.\u00a0 Plus, XTL\u2019s Distribution operations combined with XTL Logistics and XTL Transport give clients unparalleled access to warehouse, logistics and transportation assets in Canada.\u00a0 Contact us for a free consultation on how we can help you leverage 3PL warehousing <\/a>to reduce your costs and make your business more competitive.<\/p>\n","protected":false},"excerpt":{"rendered":"

                      Here\u2019s a list of the top 10 reasons why businesses outsource warehousing operations to reduce costs and make their businesses more competitive. 1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Focus on your core If warehousing and shipping isn\u2019t your core business, then outsourcing your warehousing operations to a 3rd Party warehouse often results in greater focus on core business activities like sales, marketing and new product development. 2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Risk Reduction Warehousing and shipping comes with all kinds of risks; from financial risk of inventory loss and … <\/p>\n

                      Continue reading “Top 10 Reasons to Outsource Your Warehousing Operation”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":1273,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english-versions"],"acf":[],"yoast_head":"\n10 Reasons to Outsource Warehousing and Distribution<\/title>\n<meta name=\"description\" content=\"Great reasons to outsource your warehousing and distribution to XTL Distribution. 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