Although economic recovery undoubtedly lies ahead, it is likely to come gradually – more slowly than other recoveries in recent history.
Along with the upturn will come new ways of doing business. As companies cautiously consider increasing inventories, they will be wary of adding assets in the form of new or fully leased warehouse space. Instead of investing in space of their own, they likely will turn to those that already own the asset, such as asset-based 3PLs, to secure space in a more cost-effective manner. By outsourcing more of their logistics operations, they can intensify their focus on driving new business and managing costs to stay as competitive as possible.
During times of recovery, 3PLs offer many cost-effective strategies that allow companies to be more flexible and responsive to customer needs as business rebounds. Three practices, in particular, can be especially effective in accommodating today’s economic realities: cross-docking, to take costs out of supply chains and accelerate the velocity of inventory; secondary packaging and product customization; and a shared-space environment, allowing companies to adapt more quickly to changes in the marketplace.