Many businesses in Illinois rely on logistics and distribution warehouses. In fact, warehousing and third party logistics companies are the biggest contributor to the local economy. Illinois is one of the busiest transport and warehouse management hubs in the Midwest. It is understandable with Illinois being home to one of the busiest ports in the Midwest that warehouses and supply chain management solutions have become integral to the state’s growing economy.
Illinois is home to America’s biggest economic hub, which is home to a lot of major corporations. Companies can only flourish if they focus on the areas that are core to their business models and entrust the running of certain sections to a company that has a specific specialty for instance a manufacturing company can be more efficient and reap more rewards if it concentrated on the manufacturing process and logistics and warehousing and logistics to a reliable company that has the expertise, the experience and the facilities.
Types of Distribution & Logistics Warehousing Solutions
There are many types of logistics and distribution warehouses in Illinois, each offering something different to set them apart form the other. Generally, warehouses are used by companies to store goods for a specific time period, but if that was all they did we would call them storage houses. Warehouses may pick and pack products and some companies offer shipping services as well. In the world of supply chain management there really are only three types of distribution and logistics warehouses: public, private and contract warehouses.
Public warehouses offer space that can be leased month to month. They are ideal for companies whose inventory changes seasonally and companies who always anticipate sudden surges in the sale of their products. They are cost effective because they allow companies to defer the cost of running their own picking and packing facility. A good public warehouse in Illinois is Moran distribution Centers inc.
Companies that need to store their products away from the manufacturing base own private warehouses. They are more like an extension of a business and hence are responsible for building maintenance, staffing, equipping the facility with picking, packing and inventory control systems. Every cost that needs to go into an efficient warehousing system falls on the head of the company. For instance, Nexus runs its own private distribution center in Chicago for logistics management and distribution.
Contract warehouses offer leases for a specific period ranging from a couple of months to years. The cost is calculated per square meter, which makes it less expensive than the previous options. They usually offer dedicated racking, forklifts and security. A lot of businesses in Illinois use logistics warehouses because they are able to tailor their service offer to the customer’s specific needs.
This means you will not be paying for something you do not need or space that you would not be using. United facilities, Inc. of Illinois offers a comprehensive service to companies that want to logistics their supply chain to a third-party company. They offer transportation services, warehouse management, Inventory management system, packaging and assembly solutions and other services.
Third party logistics firms like United Facilities and North American Warehousing Company can help business reduce capital expenditure for facilities, equipment, personnel, truck and other functions. Companies can supply those savings to other profit centers or the running of primary operations within their organizations.