Growing companies are faced with many challenges, especially their supply chains. As the volume of products increases, market size grows, and new locations are added to the distribution range, Canadian businesses in particular encounter a wide range of factors that impact their ability to remain competitive. In order to gain competitive advantage, it’s critical to evaluate your approach to warehousing and make smart choices that enable continued growth and success.

For many companies operating in Canada, storage and warehousing of products presents numerous problems that must be overcome. The distance between major urban centers can be quite vast in this country, and market demands can fluctuate substantially as the seasons change. In order to meet these challenges, more and more Canadian companies are turning to third-party logistics (3PL) warehousing solutions.

3PL warehousing provides several advantages to companies that are faced with growing pains in their supply chain. Although each company will naturally have a different set of circumstances under which they operate, the overall benefits of 3PL warehousing are generally the same for most companies. Let’s now explore some of these benefits in more detail.

Benefits of 3PL Warehousing

Flexibility

Sales seasonality has some serious implications on business operations, as it means fluctuations in your consumer demand throughout the year. These ebbs and flows in the sales cycle can be extremely difficult for fixed warehousing assets to accommodate, since these fixed resources are always either under capacity or over capacity depending on the time of year and the volume of sales.

3PL warehousing resources add flexibility to your supply chain by providing the extra space you need during higher volume surges, and then keeps costs low when you require less space during quiet sales periods. This flexibility provides your company assurances that no matter what the upcoming season may bring, your warehousing capacity will meet the needs of the business. To read more about managing sales peaks, read this whitepaper.

Scalability

Another benefit that 3PL warehousing provides is the ability to scale with your business as it grows. Unlike seasonal cycles which raise and lower with at least some level of predictability, the need for ongoing increased warehouse capacity as a result of business growth cannot always be foreseen.

When your company experiences substantial growth in a short period of time, you need a warehousing solution that can provide the additional capacity immediately, which is exactly what 3PL warehouse facilities provide. Your business can rest easy knowing that when you need more space, it will be there and ready for you to use at the right time.

Of course, rapid and unexpected growth isn’t the only reason that scalability is a benefit. In cases where your company is aggressively seeking new markets, additional scalability can come in the form of 3PL warehousing resources in other locations across the country. As your company sets its sights on new markets in distant locations, the coast-to-coast coverage of a 3PL warehousing network can be a major strategic advantage.

Reduced Overhead

Every company needs to manage their overhead costs to help ensure financial stability and predictability, and the ideas of taking on additional overhead in the form of dedicated warehousing space is not something that many companies would be excited about. 3PL warehousing solutions help alleviate that stress by providing your company exactly the space you need at exactly the time you need it.

Flexible and scalable warehousing solutions from 3PL logistics firms allow your company to minimize the costs associated with warehousing while simultaneously enabling greater supply chain efficiency and improved ability to adapt to market demands.

Value-Added Warehousing Services

In addition to simply providing the extra space your company needs, 3PL services also include many other benefits that your business can leverage. Besides distribution services (inventory management, material handling, automation, packaging, and fulfilment), a 3PL can provide a variety of value added logistics services which you can leverage to supplement your internal capacity, shorten turnaround times, and improve overall consistency for your customers.

3PL warehousing resources can also include assistance with regulatory compliance, which is especially valuable for companies that are involved in the healthcare industry.

These specialized facilities are equipped specifically to deal with the stringent rules and regulations that are necessary to properly store, handle, and transport sensitive products and equipment.

Expanding Your Capacity for Growth

Overall, all of these benefits work towards the common objective of your company’s growth. By providing your business with nimble warehousing solutions, the ability to expand capacity virtually instantaneously, and cost savings through greater efficiencies, 3PL services help ensure the continued success of your company.

As the market evolves to become even more competitive, your business needs every advantage it can get in order to maintain and grow market share. Flexible and scalable warehousing solutions can provide a substantial edge over your competition.

To learn more about 3PL warehousing and how flexible warehousing solutions can benefit your company, contact the SCI team today.