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Public Warehousing

-The Variable Cost Model for Supply Chain Management via 3PL-

Michael Mozney

The essence of the public warehouse supply chain model is that it offers clients a variable cost solution to their fulfillment services & to the warehousing and distribution of their goods. The ultimate goal to the variable 3PL approach is to provide the client with an excellent warehousing & fulfillment services process at the lowest overall cost. The variable public warehousing solution squeezes costs out of the fulfillment services and warehousing and distribution side of the clients operation and maximizes their overall profits. Public warehousing is used by all of the fortune 5000 companies as it meets a number of key goals including:
  • Seasonality of Business:
    Most customers experience highs and lows in their business cycles especially within their fulfillment services & warehousing and distribution areas. The ability for logistics companies to manage this seasonality is critical to the profitability of their clients. Having a 3PL that can provide seasonal storage of your products is a valuable asset to your organization. The right 3PL will provide multiple options for seasonal fulfillment services.
  • Changes in Inventory Levels:
    When business is booming, logistics companies manage the increased volumes. At the same time the expenses that the client absorbs for the warehouse services provided will increase due to the expanded business. When business is slower, logistics companies manage the decrease in volumes and order fulfillment. The corresponding expenses associated with the fulfillment services decrease as well for the client as the clients expenses are adjusted to meet the current demand being processed by the 3PL. Sorting through logistics companies and finding the right one will lead your organization towards a variable cost model for fulfillment services.
  • Provides Transportation Services:
    A complete 3PL team will provide a single source solution to warehouse services, fulfillment services, and transportation requirements. Logistics companies with transportation divisions often provide a more economical way to complete the sale between you and your customer by proving a single source solution to the supply chain side of your business.
  • Provides for warehousing expertise:
    A local fulfillment warehouse will become your local & regional expert in that market. The team of local professionals that become your 3PL partner will become an invaluable asset to your team. A warehousing and distribution company that not only is located in a market but understands the market will help to decrease your order cycle times, expand your local market, and provide a very cost effective solution to your third party logistics (3PL).
  • Reduction in Risk:
    If you have a third party logistics (3PL) partner managing all of the 3PL aspects of your supply chain including the public warehousing, contract warehousing, pick and pack, parcel distribution, kitting, packaging, assembly, order fulfillment, pool distribution, and consolidation, you have completely reduced your initial and on going risk associated with getting your goods to market. The capitol expenses associated with entry or continued operation are all assumed by the logistics companies that are managing your supply chain operation.
  • Multiple Points of Distribution:
    Since "Risk" is reduced by using a 3PL, it affords companies the opportunity to expand into multiple markets in very short periods of time. With a variable cost model for your third party logistics (3PL), you can afford to grow your business and increase your fulfillment services side of your business. More business in a larger market allows for more profits to clients that use and understand the third party logistics (3PL) model.
  • Agility & flexibility:
    The key to all great business models!! Make your operation extremely flexible by choosing the right third party logistics (3PL) team. Easy entry or exit from a market, variable pricing based on flexible cost programs, risk reduction on capital, local expertise, and the ability to operate your supply chain side of your business efficiently and cost effectively is what creates a great business model. Finding the right third party logistics (3PL) to manage your fulfillment services has its rewards!
  • Leading 3PL IT technology:
    Let the 3PL own and manage the latest in order fulfillment & public warehousing technology. You will run your supply chain operation with the most effective technology at a limit risk.

For additional information on "Variable Cost Public Warehousing" please contact us or Email us at or call us at 312-328-0254.

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.

Public Warehousing | Contract Warehousing | Pick N Pack | Distribution/Consolidation
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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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