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Vin Gulisano Mar 4, 2024 12:11:47 PM 10 min read

The Advantages of Choosing a 3PL Warehouse in a Strategic Location for Your Business

Amid rising labor, real estate, and supply chain costs, businesses are relying on efficient warehouse solutions to manage expenses while meeting customer expectations at the same time.

The evolving logistics landscape highlights the critical need for efficient and reliable warehousing solutions from third-party logistics (3PL) providers.

One of the critical trends for efficient warehousing solutions is establishing a presence in lower-cost locations to cater to these needs. A 3PL warehouse in a strategic location can support retail and consumer package goods fulfillment as well as distribution for e-commerce and direct-to-consumer merchants.

Given rising costs in the logistics hub of Southern California, the Sacramento region in Northern California has become a location of choice for premier 3PL warehousing solutions.

Sacramento is a vital industrial market that serves a highly populated and growing metro area.

Nearly 3.9 million people live within 50 miles of Sacramento, and growth is projected at 4.0% over the next five years. Companies can reach 16.7 million consumers within 250 miles.

Greater Sacramento lies within the Northern California Megaregion, with convenient access to the Bay Area. The region’s interconnected transportation system enables efficient freight transportation across the nation and around the globe.

Importance of Strategic 3PL Warehousing Solutions

Sacramento’s geographic location and advanced 3PL services provide a competitive edge to businesses. That’s why G&B Fulfillment relocated to Woodland, in the Sacramento metropolitan area, in 2023.

The four counties of the Sacramento region represent a cost-effective alternative to the Southern California Inland Empire market, offering relief from congestion, port issues, and skyrocketing warehousing costs.

Southern California’s labor and warehouse storage rates have risen dramatically in the past few years, pricing some customers out of the market. GBF’s leadership team decided to move to Sacramento so they could continue providing cost-effective, high-quality services for their clients.

Cargo moving to and from GBF’s Sacramento facility strategically bypasses major traffic routes, facilitating faster and more efficient distribution. While trans-Pacific voyages to and from the Port of Oakland may have slightly longer transit times than Southern California crossings, the time difference is more than made up by lower costs for storage and drayage. Faster delivery from the ports means customers’ products are ready for sale sooner, allowing them to compete in a fast-paced market environment.

Key Advantages of Sacramento’s 3PL Warehousing Solutions

Sacramento’s 3PL warehousing solutions, such as proximity to major transport routes, state-of-the-art technology, and customizable services, are a game changer for companies that require seamless, simple warehousing and fulfillment solutions.

Although it’s located on the West Coast, the Sacramento region offers easy access to major markets to benefit businesses in terms of logistics and distribution.

Sacramento is a one-day drive from the highly populated areas of eastern Nevada, northern Oregon, Los Angeles and the San Francisco Bay Area. Distributors and logistics companies connect with the nation via major highway systems at the intersection of Interstate 80, Highway 50 and Interstate 5.

Sacramento also serves as a major junction for rail freight, with east-west and north-south Union Pacific lines serving San Francisco to Chicago and San Diego to Seattle. The Union Pacific intermodal terminals at Lathrop and the Port of Oakland connect inbound and outbound freight with less congestion delays than other West Coast ports.

The Port of Oakland loads and discharges more than 99% of the containerized goods moving through Northern California. Oakland’s cargo volume makes it the ninth busiest container port in the United States, according to the Port of Oakland.

With ocean freight access at the Port of Oakland, shippers experience fewer delays due to port and traffic congestion. Vessels spend less time at a berth in Oakland compared to Los Angeles and Long Beach, for example.

The area also has air cargo service via Sacramento International Airport and the regional Mather Airport.

Sacramento’s 3PL warehouses, like G&B Fulfillment, use proven, robust technology to enhance inventory management, order fulfillment, and tracking.

Sacramento’s 3PL providers offer tailored solutions to meet diverse business needs, ensuring flexibility and scalability. G&B Fulfillment provides value-added services such as kitting and labeling. Fulfillment processes can be customized to meet retailers’ and distributors’ requirements, including managing retail compliance programs.

How Businesses Benefit from Sacramento’s 3PL Warehousing

By utilizing Sacramento’s 3PL warehousing solutions, companies enjoy benefits such as cost savings, improved efficiency, and better customer service.

Many of these benefits result from the location in proximity to a large customer base and transportation network. Locating inventory close to customers allows merchants to offer low-cost, fast shipping to buyers in nearby zones.

A smaller, less expensive real-estate environment offers flexibility to the 3PL to scale for customers. In the Sacramento region, it’s cost-effective to lease smaller spaces or buildings to accommodate incremental or seasonal growth for a client, compared to highly competitive markets in Southern California.

For fast-selling consumer goods, a 3PL warehouse in Sacramento can add product to inventory faster and ship it to its destination quicker and at lower costs. Whether a company is involved in B2B distribution, direct-to-consumer delivery, or a mix of both, a Sacramento 3PL offers a competitive advantage.

G&B Fulfillment helped Fashion Angels, a leading toy and activity manufacturer based in Milwaukee, Wisconsin, overcome supply chain delays and rising costs. Fashion Angels engaged with G&B Fulfillment to receive products and clear customs to shorten the product’s time to market and mitigate cost increases.

With the Sacramento 3PL location, Fashion Angels was able to cut shipping and clearance times from about two months to two weeks at the height of supply chain disruptions, with millions of dollars of savings as well.

Securing Success with Strategic 3PL Warehousing in Sacramento

With the move to Sacramento, G&B Fulfillment has strategically positioned itself to provide unparalleled 3PL logistics solutions. The relocation has proven to be a resounding success, offering frictionless fulfillment to elevate the logistics experience for businesses across many industries.

Companies benefit from faster, less costly warehousing and fulfillment services strategically located to reach major markets nationwide.

As logistics challenges and costs continue to multiply, G&B Fulfillment’s Sacramento/Woodland 3PL location is positioned to help businesses navigate these challenges.

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