3rd Party Logistics Applications

The efficiencies generated by outsourcing logistics have made 3pl’s extremely popular. Recent studies show that 80 percent of Fortune 500 companies outsource at least one function – the largest such number in history.

What is logistics? A recent study defined logistics as: That part of the supply chain process that plans, implements and controls the efficient flow and storage of goods, services and related information from the point of origin to the point of consumption, in order to met the customers’ requirements. Today's modern, efficient warehouses/distribution centers are the heart of logistics, and provide control, efficiency and velocity for goods moving through the system.

A bit broad, but the elements that make up the modern logistics industry continue to evolve as the breadth of value added services warehouse logistics providers offer does. This expansion has been accelerated by three vital trends in the new economy:

• The general trend toward outsourcing,
• The previously unprecedented growth of e-commerce and
• The importance of the partnership aspect of the manufacturer/marketer-logistics provider relationship.

A recent study found that 95 percent of the U.S.’s chief executives believe they should have some form of logistics strategy, and nearly 50 percent of the nation’s CEOs are currently incorporating supply chain planning into their overall business strategies.

One thing is certain: no matter how logistics is defined, the function accounts for 8.7 percent of the total U.S. Gross Domestic Product ($910 billion in 2002). It is growing dramatically in terms not just of services provided and outsourced but in terms of volume. The industry’s 3PL provider element alone counts for more than $78 billion and is estimated to be growing by 15-20 percent per year.

3pl’s continue to position there business with “value add” it still comes down to warehousing. The more efficient utilization of the box both cubic & square footage, offers more capacity, and of course more billable actions.

Compact’s innovative mobile solution offer a significant advantage for 3pl’s offering up to 50% greater capacity and yet full accessibility to each customers SKU. This formula of selectivity and cost per square foot provide a competitive advantage. 

Two drawing of 3pl warehouse designs are illustrated, the value is as follows:

• 65% increase in billable product
• Fastest turning SKU’s have been relocated nearest to staging and shipping docks
• Other storage solutions are incorporated to develop the most efficient warehouse possible
• 30% INCREASE in productivity, reduced pick routes
• Slowest moving product is located in modules equipped with remote (RF) activation eliminating aisle being opened

Compact’s innovative warehouse design incorporates over 64 open aisles for picking & replenishing, this design offered a 78% increase in capacity over wide aisle select. Productivity gains in pick time and truck turns at the dock.  When storage rows need to be replenished Compact’s mobile carriage move either right or left creating a 13’ aisle.

Compact’s classic “T” BONE warehouse design offers fast turns, seasonal growth, pick operation and remote (RF) activation for all of the Compact modules.