There’s never been a more important time for innovations in warehousing. Australia is holding strong as a player in global trade, and our economy is increasingly reliant on our small to medium businesses—which means that our warehousing solutions need to get more flexible if they’re going to efficiently service our markets.
The rise of e-commerce, and the increasing pressure of both domestic and international demand for our goods is leading more and more Australian businesses to seek the help of third-party logistics providers to help them serve their customers. It’s a time for great opportunity for 3PLs, but with such fierce competition, warehousing has got to be a priority for those serious about being leaders in logistics and supply chain management.
The changing focus of Australian business owners
The obvious issue for every company looking for a logistics provider is cost. But surprisingly, it’s becoming less of an issue for many Australian businesses.
The goods have to be stored and moved, period. There’s a financial cost involved to maintain the momentum of a supply chain, and most businesses won’t deliberate too long on the size of the invoices. What they seem to be more interested in is the flexibility of the warehousing, and the efficiency of the inventory management systems, which are the essential components of a short lead time and a better bottom line.
Because Australian business owners have to consider every possible avenue for servicing their customer base and streamlining their supply chain to keep up with their competitors, they’ve got their fingers on the pulse of logistic industry trends. 3PLs know this, which is why in recent times so many providers are breaking away from traditional logistics frameworks and innovating new and better ways to offer their services.
The potential clients of 3PL providers have a few demands, but they’re virtually all centred on a simple premise: flexibility.
Warehousing options to suit dynamic businesses
Traditionally, smaller businesses have been limited in their warehousing options because of their size, and the resulting lack of resources to take the substantial financial risk of investing in standard warehousing services.
When it comes to warehousing, one size fits all won’t cut it anymore—no matter the size of the enterprise. Things have obviously changed, and whether that’s due to the dynamic nature of modern trade, the increased impact of bigger seasonal peaks, or the rise of e-commerce, Australian businesses are getting what they’re asking for: scalability.
Good flexibility and scalability in warehousing is what 3PLs are made for. Warehousing works best together with a 3PLs transportation systems, because scalable storage is well supported by the smaller, more frequent distribution patterns that characterise their style of supply chain management. Australian 3PLs are skilled in providing complete solutions to their clients’ logistics needs, increasing their storage space in peak demands, and scaling it back in quiet periods to conserve valuable resources—because of the nature of this vast country, and their experience in facing the biggest challenges of the logistics industry.
The real benefits of scalable warehousing
Perhaps the biggest benefit of flexible storage is reducing the cost to the business paying for the warehousing. 3PLs are now competing to offer completely customised storage options to best support their clients where high seasonal volumes demand more space—along with flexible pricing to meet the clients’ budget, so they’re not paying for space they’re not using.
But perhaps the more important benefit is the increased efficiency that comes with using a 3PL. A business owner on the borderline of having enough of their own storage will know how even a modest increase in demand can make their entire supply chain unmanageable. But for what they pay a 3PL, they’re gaining in efficiency, because their busy and slow periods of demand, and their long- and short-term needs, are managed equally well.
3PLs are experts in scalable warehousing. But that’s because their expertise is in the entire process of logistics management. Warehousing isn’t just a place for a business owner to dump their goods: it’s a place for them to be stored appropriately for their types, volumes, and unique requirements; a place for them to be secured from damage, loss and theft; and a place where they can be professionally monitored and managed so the business owner will always have a clear picture of how their business is running. 3PL warehousing does a lot more than save businesses money: it shows them how well their customer base is being serviced.
Logistics management: Australia’s business partner in global trade
Flexibility is the key to success for virtually all Australian businesses—especially the growing ones. Scalable warehousing is an important component of a streamlined supply chain, and taking advantage of the abilities of a good 3PL to deliver a dynamic service can provide substantial cost savings, significantly reduced lead times, and more reliable distribution and fulfilment.
While it might be tempting to spread your logistics costs across multiple logistics service providers, investing in the one 3PL can also increase the efficiency and sustainability of a business’s supply chain. There’s no comparison to working with a good 3PL whose expertise spans both accurate and efficient warehousing solutions, and broad delivery capabilities across a range of modalities.
S.A.L. Global Logistics are experts in traversing unstable market conditions, variable demand periods, and myriad delivery service requirements to deliver our customers the best 3PL services available in the country.
Contact us for more advice or information on our scalable warehousing and innovative logistics solutions, and we’ll be happy to help you move your business further in front of your global competitors.