Strengthening Supply Chains with Decentralized Warehousing

There’s no perfect formula for anticipating demand for your products. Instead, those working in logistics are tasked with balancing ebbs and flows in demand with dynamic supply chain challenges (both the regular kind and the global catastrophe kind). The right balance keeps store shelves stocked and customers happy — without forcing businesses to pay for tons of excess storage space.

Decentralized warehousing is a strategy designed to achieve this balance. Let’s examine some of decentralized warehousing’s key advantages, and how a trusted 3PL can help implement cost-saving storage strategies throughout your company’s logistics:

How Decentralized Warehousing Works

Decentralizing employs multiple small facilities across several key metro areas (as opposed to one massive “centralized” location) to store goods closer to the end consumer. The intended result is a quicker, cheaper shipping — plus the added benefits of multiple pickup locations for customers, and an added measure of protection to your distribution network in the wake of major disruptions.

Businesses can acquire a series of in-house facilities or (more commonly) partner with a pre-existing network of storage spaces. Taking advantage of third-party warehousing and fulfillment spaces is generally the more efficient and flexible option for businesses looking to quickly expand their existing distribution network.

Advantages of Decentralized Warehousing

Maintaining stock in multiple facilities closer to consumers offers businesses the two attributes every supply chain needs to thrive: efficiency and resiliency.

Demand in specific regions can be met more efficiently as products are distributed based on orders and data specific to the area — plus, it makes next-day shipping more cost-efficient (a must for today’s customer conditioned to expect faster, cheaper delivery).

Decentralized inventory strategies boost supply chain resiliency by mitigating the risk of your entire operation getting sidelined by a single disruption — power outages, fires, road closures and other disasters can shutter a business keeping all of its goods in one central hub.

Operating multiple smaller facilities also provides opportunities to improve your supply chain without putting your entire organization at risk. Companies can play with new systems, test new markets and even try out new suppliers on a small scale to garner insights that could later improve their inventory management.

Streamline Your Warehousing Strategy with First Call

Adopting a managed decentralized logistics network is the simplest solution for businesses seeking faster shipping times and improved flexibility. First Call Logistics offers the following warehousing services to assist companies of all sizes and industries with their storage needs:

• Advanced WMS (Warehouse Management/Inventory Management): WMS is essential for providing visibility into your business’ existing inventory and supply chain fulfillment operations.
• Integrated TMS (Transportation Management System): TMS allows customers to track inventory levels and monitor goods in transit, providing regular status updates from initial shipment to completed delivery.
• Established Carrier Network: An existing multi-modal network of carriers our team trusts to get the job done.
• 24/7 Customer Support: First Call is always a phone call away to answer questions and address emergencies.

Contact a First Call expert today for more on shielding your supply chain from disruptions, accelerating shipping speeds and saving on your logistics.