Just as in real estate, when it comes to the benefits of working with the right third-party logistics (3PL) provider, it’s all about location.
Fulfillment center location is among the most important considerations when selecting the ideal 3PL partner to handle your company’s shipping, receiving and inventory management. A strategically-based warehouse can lower costs, increase efficiency and reduce supply chain disruptions, which can all positively impact your bottom line.
Cost Effectiveness
Fulfillment center location is a balance of several factors, including proximity to a port, real estate prices, workforce logistics and transportation costs. Because of this equation, the ideal location is constantly evolving.
For example, a few decades ago warehouses very close to a port could be obtained for a reasonable amount of money. Over the years, however, skyrocketing real estate rates — a 300% increase near the Port of Los Angeles — have pushed what is considered “close to port” farther out.
Labor costs and real estate prices are higher next to port, making warehouses farther out much more cost-effective, even though these locations carry more transportation costs to bridge that distance.
Inbound & Outbound Operations
When it comes to a 3PL partner’s warehouse location, in addition to the aforementioned inbound operations (costs of labor and real estate), it’s also important to examine outbound operations.
Consider where the majority of your customers are located and where you ship the most products. For instance, do your customers purchase your product from a storefront, or are your products shipped to them directly from the dock/warehouse? It’s important to have a location that’s beneficial for both inbound and outbound processes.
For example, G&B Fulfillment recently partnered with Milwaukee-based toy retailer Fashion Angels in order to mitigate added costs based on shipping from the company’s Midwest location. Like many companies, Fashion Angels manufactures their products in Asia, and their products came in through the Port of Los Angeles.
However, their products needed to be shipped directly from the Port of Los Angeles to their Midwest location. This significantly increased shipping costs. Once Fashion Angels partnered with G&B Fulfillment, they were able to use GBF’s Southern California warehouse, providing Fashion Angels with the location needed to shorten shipping times and streamline logistics.
New North-Central California Fulfillment Center
GBF recently announced it will open a new, state-of-the-art warehousing facility in Woodland, California. Located 90 minutes from the port of Oakland and 19 miles northwest of Sacramento, the new 317,779-square-foot facility is slated for completion in July 2023 and will help shippers lower costs, increase efficiency and reduce supply chain disruptions.
Woodland offers the right balance of an available workforce, affordable rent and robust transportation infrastructure. The new location will result in GBF clients paying less than half of the cost for storage/rent as they would at a more port-adjacent facility.
Whether you need ecommerce fulfillment, multichannel solutions or transportation management solutions, you can trust the experts at G&B Fulfillment to provide the support your business needs as it grows. To learn more about the benefits of partnering with a 3PL provider and GBF’s ideal locations, contact us today.
