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Parcel distribution in Chicago

Gerald Bussey

Parcel distribution is just one of the many services a third party logistics (3PL) company provides. They are experts in small package and parcel processing and distribution. Sometimes, 3PL’s work with major shipping companies such as UPS and FEDEX to get packages from Chicago all across the nation. Because Chicago is such a big, major, city, parcel distribution is a crucial service that many businesses require. 3PL companies offer a range of warehousing and transportation services (parcel distribution a major one) that can be custom tailored to meet the specific needs of their customers and their changing supply chain requirements.

In recent years there has been a growth in parcel distribution demand as online shopping has become a major trend. This has also led to an increase in the number of 3PL firms. Most experts agree that this explosive growth can be attributed to a number of key social and economic factors:
  1. Exponential growth of e-commerce
  2. Companies shifting toward out-sourcing
  3. The growing relationships between manufactures, marketers, and logistics providers
The importance of parcel distribution is growing amongst manufacturers, marketers, and consumers across Illinois, and the entire nation. Studies have shown that the increase in internet sales has increased revenues of parcel distribution companies. Logistical strategies have been revamped to keep up with the demand and have made supply chains more profitable and efficient.

Parcel distribution is big business. In recent years logistical companies have experienced exponential growth. Last year, FEDEX accrued over $34 billion; parcel distribution alone contributed over $7 billion.

For businesses, especially in the Chicago land area, developing a good relationship with a third party logistics firm is very beneficial. Some of the benefits include:
  1. Reduced transportation and distribution cost – 3PL firms focus 100% of their attention on supply chain management. To survive in their competitive industry they must operate in an efficient and cost effective manner. Those savings are passed along to their customers.
  2. Reduced need for personnel – A 3PL firm provides all of the personnel necessary to get the job done. As a result, their clients experience a reduction in personnel required at their firm and see an accompanying reduction in payroll and benefit expense.
  3. Increased parcel distribution availability -- Having a good relationship with a parcel distribution provider will be very beneficial. Providers will be able to better react to your needs if you need get a quick shipment out.
  4. Improved cycle time – 3PL firms work to operate in the most efficient way possible. A combination of expertise and experience allows them to perform logistics functions as quickly and efficiently as possible. The result is improved cycle time for their clients.
  5. Better customer service – The result of higher levels of efficiency in today’s logistics management is the ability to easily and quickly track products all the way through their supply chain from point of origin all the way to the end user.
  6. Reduced distribution and transportation costs – The profitability of logistics firms depends upon achieving the lowest transportation and distribution costs possible and those savings are passed on the their clients.

When using a third party logistics firm in Chicago, your company has the ability to benefit from the parcel distribution services of that company; having a good relationship with a 3PL parcel distribution provider helps reduce capital expenditures. This can translate back to the manufacturer as they are able to save money too and direct it to their primary operations. Consumers are even able to benefit somewhat from this partnership.

In today’s unpredictable economy, it is essential to have a good logistics strategy, with a major emphasis on parcel distribution that gives strong consideration to developing a relationship with an experienced third party logistics firm.

For additional information on “Benefits of Using one Warehouse Company in Chicago,” visit our website or contact us via email or telephone 847-439-0000.

Moran Distribution Centers facilities are located in city of Chicago area, Illinois, midwestern, United States.

Services include contract warehousing, public warehousing, pick n pack, distribution and consolidation, order fulfillment and parcel distribution. Specialty warehousing is provided for paper products, auto parts, retail, electronics and consumer products.

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Chicago Public And Contract Warehousing Locations At
Elk Grove Village, Il. and Bensenville, Il.

(312) 328-0254

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