The 5 Most Important Words in 3PL Warehousing
To an outsider, 3PL warehousing may seem like a fairly simple business. You have stuff stored in a building. Someone tells you to ship some of the stuff, which you do in a merrily way. Then you get more stuff and put it away temporarily until someone asks you to ship that stuff. Easy! Well there’s obviously a lot more to it. We’ve prioritized 5 areas that we think should be part of every successful 3PL warehouse. No, you do not have to take a vocabulary test on these but they should be an integral part of your business.
EDI
EDI (Electronic Data Interchange) is an electronic communication system that provides standards for exchanging data via any electronic means. It allows business documents to easily be exchanged from one business to the other instead of manually entering data. This increases efficiency and it eliminates manual data entry, wasted time, human error, and the need for paper. If EDI is not currently part of your system it must be on the plan to add. Learn more about EDI on our website here or check out our partner SPS Commerce here.
Scanning
This is important in 3PL warehousing for the same reason it is important at grocery stores and convenient stores. Barcode scanning increases efficiency in warehouses by saving time and energy and enabling you to easily monitor, store, and track inventory at all times without error. It allows you to quickly locate all inventory by knowing exactly where it is, how long it has been there, and where it is going.
Workflow
A sequence of industrial, administrative, or any other process that a piece of work passes through from initiation to completion. This includes every step in the 3PL warehousing process from manufacturing, receiving, storing, transporting, and delivering goods to the end consumer. Workflow breaks down every step of the process and helps keep organization and productivity high.
Accuracy
The physical count of goods being accurate is very important in 3PL warehousing because if a client is billed for 200 goods then they better receive 200 goods. If they only receive 190 goods then they will be mad that you ripped them off but if they receive 210 goods then your warehouse is losing money. It is also important because it helps locate everything when you need it because everything is where it is supposed to be.
Safety
Safety is important in every aspect of life but especially in 3PL warehousing. There are endless ways for employees to get hurt so it is extremely important that proper safety procedures are understood and followed at all times. If you are new to 3PL warehousing or don’t yet have a formal safety training program in place, you may want to start by adding OSHA’s Warehouse Safety Pocket Guide to your employee onboarding and review processes.