6 reasons why integrated warehousing and distribution works best

  • 6 reasons why integrated warehousing and distribution works best

    06-14-articleIf you’re looking for a new warehouse space, perhaps to extend your footprint into a different area of the UK, you’ll be looking for flexible terms, competitive costs and evidence of the supplier’s ability to provide the sort of quality service you need.

    You might also need distribution services.

    Why should you consider suppliers that offer both warehousing and distribution services, rather than those that just provide one or the other?

    Lots of companies offer both warehousing and distribution – can they be good at both?

    The answer lies in the integration of the two types of service. They fit together well, yes. But what are the benefits of using an integrated warehousing and distribution provider as opposed to a standalone service provider?

    1. Greater efficiency

    Efficiency in logistics is about meeting deadlines, managing costs and delivering quality. An efficient supply chain depends on timely delivery, highly organised storage and stock management, fast and accurate picking and packing, and distribution of the right goods to the right place at the right time.

    So as well as having the physical warehouse capacity and transport infrastructure in place, real efficiency comes from seamlessly integrated systems and management reaching across both warehousing and distribution operations, meaning that cost, reliability and quality guarantees can be met.

    2. Single point of contact

    Given normal operating conditions, any one 3rd party warehouse operator should be able to work with any other 3rd party distribution provider.

    Yet with multiple contacts in different businesses it doesn’t take much for the links in the chain to start breaking down. Working with a single company for the entire integrated warehouse and distribution operation can be a huge benefit when the unexpected happens. Ownership, accountability and responsibility will therefore  only sit in one place as well as there being  only one number to call if things go wrong or indeed if you need more work!

    3. Faster response times

    The single point of contact at your warehouse and transportation provider fronts a fully integrated, centrally managed logistics operation. Put simply, that means fewer links in the chain.

    With fewer processes to fall down, fewer weak links and a tighter communications and management structure, decision making response times are faster – meaning that your issues, queries and requirements will be attended to faster.

    4. Less supplier administration overhead

    Managing lots of suppliers can be a headache. If you deal with too many it can become a big drain on administrative overhead.

    Using a single integrated warehousing and distribution supplier as opposed to separate suppliers
    means simpler purchasing processes, fewer credit checks and less paperwork (such as purchase orders and invoices), as well as fewer phone calls, emails and faxes.

    5. More customised service

    Consolidating your logistics with a single supplier may also give you more influence over how your services are delivered, potentially opening the door to customised solutions tailored to your exact needs.

    6. Overall lower costs

    Single sourcing has well documented benefits including those mentioned above. Using an integrated supplier of warehousing and distribution services should result in greater levels of efficiency, better service and less room for failure.

    It should also translate into lower costs across the board, purely because of the inherent cost efficiencies of integrated systems and management compared to stand alone suppliers.

    Of course, that’s not universally true and quality of service should always be weighed up against price. It depends what your requirements are and what factors you prioritise when agreeing your supplier contracts.

     

    For more information or to discuss your warehousing and distribution requirements, contact Masters Logistical on [email protected] or call us on 01353 648222.

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