Oftentimes, packaging and distribution are handled as distinct processes in the supply chain, and often by different companies. If you’re looking to boost efficiency and cut costs, consider working with a warehousing company that has successfully integrated these services under the same roof. According to an article in Inbound Logistics, taking care of final packaging in the distribution center can reduce overall costs by up to 30 percent, as well as shave seven days off of your order-to-delivery cycle.
Reduced costs across the board.
You’ll notice a significant drop of costs when you work with a 3PL whose packaging and distribution operations have joined forces. Reduced freight costs are the most noticeable. In a conventional warehouse, inventory must travel out to a contract packager, then travel back to the warehouse for final distribution. That’s two additional legs of travel! Another Inbound Logistics statistic states that these two extra legs alone can drive up freight costs by up to 38%. And in addition to reducing costs, you’ll also reduce your carbon footprint – an equally important benefit.
You might also see a decrease in operating costs, since workers can be cross-trained to work in both areas.Additionally, cross-trained workers can float to different areas depending on where they see the most need, addressing bottlenecks and reacting swiftly to changes in demand in both areas.
Finally, you’ll save on materials, too – especially if your product requires repackaging. It’s always more cost-effective to put your value-added services as close to the end of your supply chain as possible. By integrating packaging and storage into a single operation, you can customize your secondary packaging more cost-effectively and closer to demand.
It’s important for transportation, warehousing, distribution and packaging to all be in communication with one another. The easiest way to do that is by taking care of everything under one roof. And less travel means you’ll have a better idea of where your product is at all times, minimizing inventory uncertainty and facilitating more efficient use of resources throughout the supply chain.
More travel means more opportunity for something to break or get lost. Cut down on product loss by cutting back on transportation.
Overall, an integrated supply chain is a streamlined supply chain. At Commercial Warehousing, we’ve identified the inefficiencies in the traditional system and have adapted our processes to better serve our customers. Look no further for a turnkey 3PL partner equipped with the facilities, resources and experience to provide you with on-site packaging services that manage your products safely at the highest level of service.