Third Party Warehouse & Distribution
Hogland's Single Source Alternative
A Growing number of businesses are looking to outside companies to provide solutions to their warehousing and distribution needs. As the price of real estate continues to climb, many manufacturing and distribution companies are finding that they can't afford to utilize their precious space for warehousing inventory. Many companies have moved from third party logistics providers to third party warehouse and distribution providers for solutions to their inventory and distribution problems.
In today's world of "just in time" service, vendors are finding that they need to maintain inventories close to their customers. The supplier who can consistently provide goods to the customer immediately upon demand has the upper hand when it comes to making the sale.
While there are economies of scale to be gained by operating a central distribution facility, some customers demand that minimum levels of inventory be held near them to meet their emergency needs They don't want to take ownership of the goods until they absolutely need them, forcing suppliers to have goods placed on "consignment" either at the customer facility or third party warehouse. In many cases, suppliers have found that they can realize a cost savings by shipping truckload quantities of standard materials to a third party warehouse for distribution as compared to the costs of providing direct less-than-truckload or air freight delivery when the customer places the order.
Our new facility was designed to help us provide solutions to the above scenario within the Puget Sound area marketplace. We currently have a number of customers who have truckload or import container quantities of their goods sent into our facility for unloading and warehousing. Orders are then transmitted to us to be pulled and shipped as required to meet their delivery requirements. Storage and handling charges are based upon actual inventory levels and transactions, rather than the typical fixed costs associated with maintaining your own warehouse. Essentially, it becomes our responsibility to manage the warehouse space, leaving our customer to concentrate on selling and producing their goods.
We have invested in the facility and material handling equipment necessary to operate an efficient warehouse and distribution center. These costs are then spread over a number of customers, based upon their specific volumes and handling needs. It truly creates a win-win situation for all parties involved.
The added bonus that Hogland Transfer Company provides is the ability to also pick up and deliver freight. This gives our customers a single source alternative for their warehousing and distribution needs.
If you would like to find out more about our warehouse and
distribution services, contact Steve Holtgeerts at 1-800-562-0413, or via e-mail.