Do safety stock arrangements have you scrambling for storage space? Implementing a decentralized warehousing strategy can help.
As the nation comes out of the perils of COVID-19, supply chains and inventory levels are being tested in ways never envisioned. As a result, companies are rethinking their supply chains and the resiliency of their inventories in all aspects of their operations. This includes taking a hard look at warehousing and the need for more space.
Here’s what you should know about decentralized warehousing and how First Call Logistics can help implement decentralizing measures within your business to protect and optimize your existing supply chain.
Being Better-Prepared for Global Supply Chain Disruptions
The impact of the COVID-19 pandemic placed extreme pressure on the global supply chain, resulting in unique challenges that businesses are likely to experience for years to come. The shock of temporary economic shutdowns around the globe, stay-at-home safety measures, and radical shifts in consumer demands exposed a whole host of obstacles for logisticians to overcome in the present and to further mitigate in the future.
While there is no one-size-fits-all solution to global supply chain bottlenecks, there are proven strategies businesses can implement to place their stock closer to the end consumer and safeguard their distribution network against potential disasters. That’s where decentralized warehousing steps in, offering quicker, cheaper methods of delivering products and benefitting both businesses and customers alike.
How Decentralized Warehousing Works
Decentralizing your inventory system utilizes multiple small facilities across several key metro areas to store products closer to the customer and expedite the overall shipping process. Businesses can use existing customer data to identify the most advantageous regions in which to establish these facilities.
Operating multiple strategically-placed locations enables your business to better serve customers by shipping products more quickly, as well as providing additional customer pick-up locations. While decentralized warehousing operations can be done through self-owned warehouses, employing an existing managed decentralized logistics network is a more efficient and flexible option for businesses looking to quickly establish new warehousing locations and expand their existing distribution network.
Advantages of Decentralized Warehousing
Maintaining regional fulfillment centers offers businesses increased flexibility and adaptability. Demand in specific areas can be met more efficiently as products are distributed based on orders and data specific to that area, and next-day shipping becomes more cost-efficient (a must for today’s customer conditioned to expect fast, cheap delivery).
Operating multiple smaller facilities also provides opportunities to try out additional operational changes without putting your entire organization at risk — gathering data from testing new systems, markets, and suppliers can be done on a small scale to further refine your overall distribution network.
With giants like Amazon continuing to open thousands of distribution centers worldwide, staying competitive by offering convenient shipping times and rates (plus the ability to pick up or return items in person) can be an invaluable advantage for your business moving forward.
Streamline Your Warehousing Strategy with First Call Logistics
As companies continue refining their supply chain processes in a post-COVID world, decentralizing distribution with First Call Logistics’ existing network offers a fast and efficient option for your business, regardless of its size or industry. To learn how our growing network of B2B warehousing services, best-in-class technology, and extensive carrier network can provide your organization with supply chain efficiencies and cost savings year-round, contact us today!