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?
.jpg?width=6000&name=Wintergreen%20Bulk%20(1).jpg)
Implications
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 Realities
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 providing supply chain support to brand leaders and market innovators in industries including food and consumer packaged goods. With food-grade multi-client and dedicated distribution facilities in the United States, The Shippers Group provides supply-chain solutions with outsourced warehousing, transportation, contract packaging, and e-commerce fulfillment services. Since 1901, The Shippers Group has relied on core values of integrity, innovation, excellence, and safety to grow customer relationships, focus on continuous improvement, and engage sustainable business practices that deliver results. More information is available at www.theshippersgroup.com.
