Why Strategic Warehousing is Essential for Today’s Manufacturers
For today’s manufacturers, there is a tremendous amount of capital required to buy and operate a dedicated warehouse facility. Additionally, there is also the liability and overhead required to manage employees, suppliers, and vendors. It can be extremely expensive to build, maintain and manage a warehouse on your own. Good news is, it’s not the only option out there.
Contract strategic warehousing is similar to public warehousing, except you are contracted for a longer period of time (usually years). Because of the longer contract, you get a lower price per year. With public warehousing, the fee is usually determined by the number of pallets you have, and there is not a contract. With strategic warehousing, you are signing up for a certain amount of time and space.
Contract warehouses provide tailor-made services to suit each manufacturer’s needs. Some of these services include, facilities cross-docking, packaging, inventory control, real-time inventory management, local transportation and quality control.
With a public warehouse, the lessee is charged fees for inbound and outbound transactions and storage. The user is expected to pay for any additional services that are desired. Strategic warehousing also requires the lessee to pay fees for services, but at a much lower cost.
Although public warehousing seems like the better option for inventory that fluctuates, most strategic warehousing services can also be flexible if needed. The costs associated with strategic warehousing services are spread across many customers. This option offers lower costs, guaranteed access, and outstanding service without purchasing your own facility.
Strategic warehousing services are crucial for customers looking to have a distribution center in a new region. This solution not only provides a clean, secure square footage for your inventory, it includes assistance with the management of your supply chain as well. A contract warehouse will be able to help your company achieve a consistent flow of goods, which arrive on time, with innovative inventory tracking.
AECI’s diverse contract strategic warehousing and fulfillment center services are carefully designed to reduce your operating costs. We take the time to learn your specific needs in order to offer versatile, customized solutions for your strategic warehousing concerns and distribution challenges. Contact us today to learn more about our contract warehouse services.