Warehouse|DC News

Five Time-Tested Tactics for Increasing Your 3PL Warehouse’s Profitability

As the global economy grows ever more connected, opportunities for warehouses, 3PLs, and distribution centers continue to expand.

Today’s 3PL warehousing world is brimming with unprecedented opportunities.

From the skyrocketing growth of e-Commerce to the increases in drop-shipping, B2C fulfillment and more, the entire logistics industry is poised for exponential growth.

In order to seize these opportunities, however, most 3PL warehouses know they must upgrade many areas of their operations. 

Their challenge is to make all of the changes that will be required – without impacting their present levels of profitability or impacting the productivity of their current operations.

Fortunately, there are a number of proven strategies 3PLs and warehouses can employ that will not only position them to grab these new opportunities – but actually enable them to increase their profitability.

To optimize your logistics operations, here are a few techniques that can help you optimize your people, processes, and assets:

1. Analyze Your Profitability by Account – In order to understand where you can improve your profitability, your 3PL must first understand where it is making money – and where it is losing it. You can do this by performing a detailed analysis of every customer account.

Best practices show that performing this analysis for every customer on a monthly basis can prevent profit leaks and help you begin pricing adjustment discussions in a timely manner.

2. Evaluate Your Staffing – Your employees’ have an enormous impact on your overall profitability. Measuring productivity and profitability is a complex analysis. Employers must assess the performance of everyone on your payroll, and evaluate their investment in training and educational efforts to grow their teams.

Remember, employee performance affects your profitability every single minute of every single day. Even small changes in behavior and attitude can yield enormous results over the long run.

3. Question Your Processes – The small, routine, and highly repetitious tasks that power your warehouse often offer tremendous opportunities for cost-savings. Any improvement, optimization or reduction in effort will be repeated over and over again throughout the work, can quickly add up to have a huge positive effect on your bottom line.

Every process should be scrutinized and tested to see where it could be improved. Once you have reviewed each process individually, analyze your warehouse operations as a whole.

4. Assess Your Physical Assets – Warehouse space, equipment, and other physical items are often overlooked when conducting a review of your business. And, while it may appear that holding on to existing assets saves you money, a closer analysis could reveal it actually costs you a lot more – both today and in the future.

If you’re trying to squeeze one more year out of an older piece of equipment you might actually be spending more on maintenance or lost productivity than it would cost to upgrade the item.

Worse still, the perception that your operation isn’t state of the art can leave your current or prospective customers with a negative impression of your level of technological sophistication. A thorough assessment should surface these issues.

5. Upgrade Your Technology – Simply put, technology offers the fastest, easiest to implement, and most reliable avenue for increasing one’s profits. For 3PL warehouses, this revolves around their choice of Warehouse Management System (WMS).

In addition to providing 24/7 visibility and seamless integration, today’s WMS serves as your technological command and control center. 

Choosing the right WMS for your business and customer needs will increase revenue by streamlining processes and delivering reliable results. 

For example, a cloud-based (SaaS) system will become increasingly important as such technologies like automated packing and shipping, autonomous vehicles and the Internet of Things become commonplace throughout the logistics industry.

These technologies offer immense opportunities to increase your 3PL warehouse’s profitability.  Having the proper WMS in place to manage your business will be crucial to getting the results you desire.


Article Topics
Best Practices   Warehouse|DC   Warehouse Management   Cloud   Ecommerce   Software-as-a-Service   Third Party Logistics   Warehouse Management Systems   All topics


Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.

 
Latest Warehouse|DC News
Material Handling Tips For Maximizing Warehouse Space
Warehouse storage space is expensive, so it makes sense to make the most of your warehouse storage capacity in order to reduce carrying costs and increase material handling efficiency.

5 Ways to Assess Your Warehouse Technology Needs
When looking to leverage new technology, each warehouse must assess their business and determine the solutions that offer not only best practices that are tried and true for today’s customers, but also…

Swisslog Optimizes Efficiency at the North Pole
Swisslog automation and software is making Santa's job easy...

Robotic Automation to Supplant 800 Million Jobs Worldwide by 2030
As many as 800 million workers worldwide may lose their jobs to robots and automation by 2030, equivalent to more than a fifth of today’s global labor force according to a new report by the research…


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles