Why Working with Third-Party Logistical Company is Beneficial

by Michael Kotendzhi | Logistics

With increased consumption habits among people in North America, food and beverage processing sector has significantly grown to become the second largest industry in Canada. The value of shipments was worth $105.5 billion in 2014, with all the signs of continuous growth. Due to increased production and distribution services, most of the manufacturing companies opted for third party warehousing and distribution services.

Outsourcing warehousing and distribution from a third party eliminates all the logistical nightmares and allows a processing company to concentrate on production only. As the operational manager of a food processing company, these are some of the benefits you will gain by outsourcing warehousing for food storing from a logistics company.

1. Resource Network

Warehousing for food storing from logistics companies gives you a chance to have a vast resource network that is not available in-house. When working with logistical companies, each step of the supply chain will be executed most efficiently and cost-effectively due to the availability of vast resources. Your company will be able to deliver quality services to the customers by leveraging on resources that you don’t have.

2. Scalability and Flexibility

Warehousing for food storing service providers allows you to scale transportation, labor, and space according to inventory needs. If your business is seasonal, you will be able to enjoy free transitions between industry ups and downs. Flexibility is also a great advantage as you will be able to utilize more space and resources when needed. Your business will be able to grow into new areas without barriers because you are enjoying warehouses and distribution services from your 3PL.

3. Save Time and Money

Food and beverage logistics will help your company to save time and money which can be invested in other areas of production. Food grade logistics providers eliminate the need to commit resources in transportation, technology, and warehouse space. There is no need to hire staff to execute logistics, which saves your business money. The food warehouse will help you to avoid costly mistakes and allow your business to build a global logistical network.

4. Continuous Optimization

Just like any other business, warehousing for food storing can overwhelm in-house supply chains, which will lead to delayed delivery and dissatisfied customers. The solution lies in ensuring that your customers are happy and your business continues to succeed. Besides, in-house supply chains have limited resources and therefore unable to provide quality and timely services. By partnering with warehouse and transportation companies, your company will be able to provide faster order deliveries and more accurate order fulfillment.

5. Reduced Operational Risks

When you handle your logistical operations, you expose your business to various unseen risks. For example, something bad can happen on the road to your only truck, which will lead to order delays and loss of customers. Trucking companies have more than one truck, which means that they will book another truck to continue with order delivery. The availability of additional trucks and drivers reduces operational risks and keeps everything running smoothly.

6. Focus on Core Competencies

Focusing on core competencies is one of the key reasons why some businesses fail, and others find it hard to break into the market. With warehousing for food storing service provider, you can focus on food processing, which is your core competency. Your company will concentrate on doing what it does best while a logistic company handles logistical activities.

7. Low Fixed Capital Commitment

Fixed cost is necessary for any company to acquire structures, equipment, and plant. However, outsourcing logistical services from a third-party provider eliminates the need for committing fixed capital in warehouse construction. Other logistical technologies such as warehouse management system will not be needed because they will be provided by the logistical company, which saves fixed capital.

Are you looking for food warehouse Vancouver? 18 Wheels Logistics provides warehousing, distribution, and transportation services in Vancouver and beyond. Our warehouse is a place of safekeeping where you will access logistical assistance under one roof.

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.