- Posted On : 10/13/2020
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Finding the Right Warehouse Space During High Demand
A 3rd party logistics company can assist clients in locating the warehouse space for their business needs. With the phrase "out of stock" becoming common for online shoppers and store aisles continuing to show empty shelves, 2020 has witnessed the supply and demand concept on display like never before. While a lot of customers prioritize securing paper towels, the logistics industry and the shippers, in general, are more concerned with the presence of a different commodity, which is industrial real estate.
Despite the economic downturn induced by the Corona virus pandemic, the demand for industrial real estate, including fulfillment and warehouse space remains high due to strong consumer spending (double-digit growth in e-commerce sales). Shippers deal with record-high asking rents and low vacancy rates, calling for swift action when leasing or buying space to meet demand.
Whether you need more space to handle your business's growing demands or to store more safety stock in your supply chain, many companies don’t have the necessary resources, expertise, or time to find and secure the space required to keep their products flowing. A trusted 3PL partner can assist, even when demand is high.
Understanding your pain points
Before getting in touch with a 3PL to help find warehouse space, you should have clarity on what pain points you’re looking to address. Is your operation outgrowing its current space? Are you unsure of how much inventory to have on hand? Are you losing business because you're unable to deliver products to customers quickly enough? If identifying pain points becomes a problem, you may find yourself trying to resolve a symptom of the problem instead of fixing the problem itself.
A seasoned 3PL can help identify the root cause of your challenges and develop a holistic solution collaboratively. Suppose that solution consists of the need for extra storage space. In that case, it can have an in-house real estate department dedicated to discovering facilities to address their customers' needs, along with logistics engineers who design customized facility layouts to optimize your operation one time in that new space.
Taking advantage of 3PL professional networks
Looking out for real estate in any capacity can be a full-time job. However, in the ultra-competitive industrial market, it becomes more challenging. When the time comes to secure space, firms must be prepared to make quick decisions, or they risk losing out to a competitor. When crossing state lines into new territories with new regulations, this process becomes doubly difficult.
3PL providers with expertise in warehousing are continuously vetting industrial real estate space for their customers. Often, these providers have long standing relationships with the landlords and commercial brokers who represent these facilities across the country, providing a substantial benefit to firms that choose to work with a 3PL partner, instead of managing the search space on their own.
Are you looking for dependable logistics solutions? Give Montage Fulfillment LLC a call now (323) 588-6508