How does a third-party (3PL) warehousing company thrive during the middle of a global crisis? Rapid problem solving is essential, but how do we execute under high stress when suddenly your customers have shipped practically everything from your facility and their supply chains are unprepared to manufacture to levels capable of replenishing stock levels? When left with a completely or partially empty distribution warehouse with rent and payroll expenses, what do you do to get back on track?
In early March 2020, there was an immediate and dramatic shift in consumer buying, while many barriers tested manufacturers’ agility to respond quickly. Strained back-end supply chains, sudden manufacturing c
New opportunities emerged enabling agile 3PL warehouses to respond positively. E-commerce sales increased demand for these services and proliferation of online grocery delivery impacted food supply chains and the role of the 3PL warehouse.
Manufacturers tested their agility to scale up manufacturing lines and processes quickly to replenish stock and meet the demand for their customers' orders. Real time data was critical, particularly regarding demand, but also for sourcing materials, increasing productions capacity, and transporting goods.
The Future is Bright for 3PL Warehouses
Never in recent history has any other crisis tested the modern food and CPG supply chain like the COVID-19 pandemic. The crisis pushed supply chains to be uber flexible and it also exposed some weak links. The upside of COVID-19 is that it enabled companies to reevaluate systems and processes to improve how they execute if faced with another national or global calamity.
As the nation rebounds from the COVID-19 pandemic, what should 3PL warehouses do to ensure they are well positioned to meet the needs of their customers and do well financially?
Ready to learn more about how a 3PL warehousing company must adapt in the face of crisis? Download our latest White Paper for detailed insights.
The Shippers Group is a leading national third-party logistics company headquartered in Dallas, Texas with distribution facilities in Texas, Georgia, California, Illinois, Florida, and Virginia totaling 16 locations and over 6.5 million square feet of space. To learn more about our areas of expertise, visit our Services page.