Warehouse inventory management can enjoy a significant boost in productivity with access to outsourced services and tools. In most cases, inventory management companies with medium and large warehouses are conveniently located in areas that have easy access to interstate highways, ports, airfields, trucking hubs, and more. In addition, these facilities usually come prepared with trucking fleets and all the required equipment needed to transport various goods. Rather than struggling to make everything fit into one management system and building a single warehouse management system to manage inventory, outsourcing to third-party platforms allows for broader access and a greater variety of tools to be utilized. And according to Gartner, “More businesses are looking to outsource fourth-party logistics (4PL) than ever before, with 42% of respondents to Gartner’s Logistics Outsourcing Survey and Analysis looking for providers that can design, build, run and measure logistics functions.” Inventory assistance with bonded warehouse management for the modern warehouse system is best managed by outsourcing for the following reasons.
Improved Inventory Flexibility
Warehouse inventory management serves as the foundation for many industries in the global market. And since market trends and customer demands are constantly changing, the supply chain must continue to adapt to meet numerous needs in various sectors. By outsourcing warehouse inventory tracking and management to a company with an inventory management system already in place, scalability and flexibility remain strong. Partnering with 3PL and 4PL providers can streamline the entire process of inventory management and warehouse operations. It allows management teams the freedom and flexibility to quickly adapt to workflow changes without fretting about possible mishaps with the monitoring systems.
Better Overall Customer Service
Continuing with the idea of letting someone else worry about the details of warehouse inventory management, this is a great way to keep the focus directed to customers. A common misconception within the industry says that outsourced inventory management will weaken services and negatively impact the ability to provide excellent customer service. In reality, the exact opposite has proved to be accurate time and time again. Subcontracting inventory management offers team members and management alike the peace of mind that professionals can handle the technical aspects and operations, which frees up in-house personnel to focus on customers and deliver the best customer experience possible, especially ahead of peak season demands.
Less Work to Train Staff on Yet Another System
When supply chain directors and warehouse managers decide to outsource services, the benefits include fast and easy access to modern technology. The latest innovations and most practical tools that make warehouse inventory management as efficient and organized as possible come pre-vetted and pre-tested. Rather than working endless hours training personnel on new systems and software, worrying about delayed shipping, or spending time and money hiring potentially risky new employees, outsourcing makes everything easier from start to finish.
Freer Resources for Managing Your Business
Warehouse inventory management can eat into resources faster than most realize. Unnecessary processes within inventory management practices can take up a lot of excessive time that could be focused on customer service or more meaningful work within the supply chain. Money is easily wasted on pointless training, needless monitoring, and busywork that innovative technology or third-party team members could easily manage. Outsourcing inventory management makes it easier to focus on business aspects that prove profitable, like marketing, industry relationships, customer experience, carrier relations, and developing new ideas. All of this frees up resources for better overall business management and day-to-day operations.
Lower Operational and Management Costs
One of the main reasons warehouse inventory management outsourcing has become so popular is the sheer costs that warehouse management and inventory monitoring can add to overall operations. Warehousing and distribution activities account for more than a quarter of the logistics costs for businesses, making it a challenge to keep up with in-house operations. More and more managers now ask why we should spend so much money and resources on building and maintaining solutions ourselves when experts can handle it? Improving warehouse workforce efficiency must focus on management and inventory control as well as customer relations and carrier relationships in order to lower costs.
Streamline Warehouse Management With the Right Supply Chain Logistics Partner
Warehouse inventory management continues to be an essential aspect of successful supply chain operations and logistical management. As a vital part of growth and expansion in any market and industry, reducing costs, maintaining customer relations, and effective networking are critical aspects of intelligent management practices. Simply outsourcing inventory and warehouse management translates into a wise investment thanks to the expertise of a combined warehouse and drayage service provider to oversee everything. Contact Port City Logistics to learn more about how your company can begin outsourcing warehouse management today.