How Public Warehousing Provides Savings Throughout Your Entire Company

Brendamour Warehousing, Distribution & Services can save your business money by providing warehouse, inventory, logistics, and distribution management services.
No matter the industry, the type of your business, or the size of your company, your ultimate goal is to make a profit. There are various ways to enhance the bottom line, such as streamlining operations, making cuts, or, in some cases, expanding. Another way to realize sizeable savings throughout the entire company is through the use of a public warehouse.
At some point in time, businesses have to balance inventory with the need for space, equipment, and labor, whether it’s at certain times to meet a high demand peak season, or to respond to a growth period. It is during these instances when a public warehouse with 3PL services, such as Brendamour Warehousing, Distribution & Services, can offer the flexibility a business needs, while providing savings throughout the company.
Purchasing Savings
As a general rule, buying in bulk saves money. However, space limitations prevent many businesses from taking advantage of bulk buying. That’s where 3PL public warehouses can be beneficial.
Not only can companies lower their purchasing costs by buying and warehousing their bulk goods, supplies, and other resources, but public warehouses also use their purchasing power to buy large quantities of materials needed to support the distribution system of the businesses that rent their warehouse space. These savings are passed on to those businesses, thus lowering their purchasing expenses.
Accounting Savings
Often times, it’s difficult to gauge whether market conditions will sustain building or leasing buildings, equipment, or systems long term. Rather than businesses making this type of investment, public warehousing frees up needed space and allows businesses to allocate capital to areas of the business that directly contribute to generating profit.
Furthermore, the pay for what you use model of public warehousing enables businesses to scale down when business slows and scale up during peak seasons without expending a great deal of financial resources. This allows the company to operate more efficiently and effectively based on sales demands, thus improving the bottom line.
IT Savings
The warehousing, distribution and logistics areas see numerous technology updates, which leads to a significant IT investment for many businesses in an area that is not their core focus. This is where a third party logistics provider (3PL), like Brendamour Warehousing, can save companies significant money.
Rather than continually purchase or lease the latest technology to manage warehousing, distribution, and logistics functions, tap into the information technology of third party warehouses. Since these areas are the core business of 3PLs, they make the investments into the latest state-of-the-art technology, including equipment, hardware, and software, that handle all aspects of storing, moving and tracking goods.
What’s more, these information technology systems are easily integrated into any company’s supply chain, making for a smooth transition without interruption of business. When it comes to IT, businesses that use a public warehouse enjoy a win-win arrangement. The business benefits from the use of cutting edge IT without having to invest large sums of money.
Human Resources Savings
Without a doubt, a major challenge for businesses is personnel. The need to hire additional workers during peak seasons, conduct layoffs when business slows, and retain quality employees all factor into the profitability of a company.
A 3PL like Brendamour Warehousing and Distribution removes that challenge. Because our core business is servicing our clients with efficient, effective, and quality warehousing, distribution, and logistics services, our human resources management plan has to be top notch. After all, the quality of work we provide your business relies solely on the quality of our workers.
As businesses know, it takes a lot of money to manage all facets of a workforce, including hiring, salary, and benefits. While these tasks are necessary for a company’s core competencies, savings are realized by eliminating them for non-core tasks, such as logistics, and tapping into the experienced workforce of a 3PL.
Logistics Savings
Supply chain, inventory, and transportation management can easily eat up a company’s profits, especially if they are not the core focus of the business. It is in these three areas where a 3PL public warehouse can help businesses realize significant savings.
For starters, 3PLs are experts in supply chain execution and management, and in identifying strategies to streamline processes and costs. After all, they work in the field every day and intimately know how the market operates.
In terms of inventory, it is often a major challenge and expense for businesses, with too little or too much inventory significantly costing the business. A public warehouse provides stable control over the movement of goods by using automated technology to project and manage inventory needs to ensure accuracy at all times.
Businesses realize even greater savings in distribution and transportation costs by using a public warehouse. Besides realizing savings from consolidating goods into one facility for distribution, businesses can lower transportation expenses through more efficient transportation routes.
In addition, 3PLs use their high usage of common carriers to get reduced transportation rates, which they pass along to their customers. Public warehouses also have the latest in hardware and software advancements that offer businesses less costly distribution services than what they are currently doing on their own.
The Bottom Line
As you can see, public warehouses are a valuable resource in a company’s strategy for success. The expertise, flexibility, state-of-the-art equipment, hardware and software, and investment in human resources that 3PLs provide allow companies who rent their warehouse space to save on costs not related to their core competencies while receiving quality services that ensure customer satisfaction.
To learn more specifically how Brendamour Warehousing, Distribution & Services can offer your business savings throughout your entire company, contact us for a free consultation.
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