Discover the key factors for selecting the ideal warehousing service and avoid common mistakes that could compromise the efficiency of your supply chain.
The global warehousing industry has experienced exponential growth in recent years. According to a report by Mordor Intelligence, this upward trend is expected to continue. The global warehousing and storage market is projected to grow from $691.74 billion to $963.74 billion by 2028, with a compound annual growth rate (CAGR) of 6.86%.
This growth is driven by the boom in cross-border selling and nearshoring, as businesses aim to bring production and storage operations closer to end markets. This strategy reduces delivery times and improves supply chain efficiency. Strategic locations are becoming critical for relocating production activities due to their favorable geographic positioning and access to skilled labor.
In this context, more companies are outsourcing their warehousing services. Aerodoc has developed a comprehensive guide on what to consider when choosing a warehousing provider to assist in making informed decisions. Addressing questions like “what to do” and “what to avoid” can significantly affect business outcomes.
What to Do When Choosing a Warehousing Service
Define Specific Storage Requirements
Before selecting a provider, it is essential to identify your business’s storage needs. Consider product type, special storage conditions, expected volume, and geographical location.
Companies like Aerodoc excel in offering tailored services, including container loading and unloading, monthly storage, inventory management, picking and packing, and integration with e-commerce platforms. These customizable services ensure alignment with the unique needs of each customer.
Research Reliable Providers
Choosing a warehousing provider involves thoroughly evaluating their reputation and industry expertise. References from existing customers and a proven track record are vital indicators of a reliable service. With over 25 years of experience serving demanding industries such as satellite, telecommunications, and technology sectors, Aerodoc stands out as a trusted partner.
Establish Clear Contractual Agreements
Transparency in contracts is essential to avoid misunderstandings. Agreements should clearly outline rates, service levels, responsibilities, and procedures for handling non-compliance. Well-defined contracts help preempt and effectively resolve potential disputes.
Leverage Appropriate Technology
Implementing inventory management systems and tracking tools streamlines logistical operations. For instance, Aerodoc employs SAP technology, a globally recognized leader in enterprise management solutions, to develop its ERP (Enterprise Resource Planning) system. This software supports day-to-day business activities, including accounting, procurement, project management, risk management, regulatory compliance, and supply chain operations.
Maintaining Constant Communication
Open communication channels between customers and providers allow real-time adjustments, imperative for addressing unforeseen challenges and implementing improvements in logistical processes.
A robust ERP system, such as SAP, establishes the foundation for effective information management. At Aerodoc, SAP technology supports the specific needs of the technology industry, particularly in managing Part Numbers, Serial Numbers, and even multiple serial numbers for a single piece of equipment. This capability ensures seamless tracking of devices that may have more than one serial identifier.
Communication and traceability are cornerstones of Aerodoc’s operations. Estefanía Sisatzky, Senior VP of Operations & Customer Service at Aerodoc, illustrates this with a clear example:
“Often, we perform Asset Management during reverse logistics or RMA (Return Merchandise Authorization) processes. For instance, when a defective asset is returned, we track its original serial number and send it to a repair facility. Once repaired, it goes back to the client. At the same time, we retrieve the interim equipment we provided during the repair period to reintegrate it into the inventory. Traceability in this process is critical—knowing where the asset is, where it was delivered, and tracking it throughout the temporary importation and exportation processes in various countries. This level of precision demands an ERP capable of maintaining complete traceability,” Sisatzky explains.
Pitfalls to Avoid When Selecting a Warehousing Service
Focusing Solely on Cost
Choosing the cheapest provider without evaluating other factors can compromise service quality. Essential elements such as reliability, responsiveness, and regulatory compliance must be part of the decision-making process.
Overlooking Strategic Location
Warehouse location directly impacts transportation costs and delivery times. For example, Miami is a strategic logistics hub for Aerodoc due to its robust port activity and its role as a gateway between the Northern and Southern Hemispheres, making it ideal for maritime export operations.
Underestimating Security and Compliance
A provider must ensure adherence to legal regulations and security standards. This guarantees product safety and avoids penalties. Aerodoc operates under stringent compliance protocols to meet the high standards required by demanding clients, such as AAA-rated public companies.
Ignoring Scalability
Your chosen provider should be equipped to grow alongside your business. Managing demand surges without compromising service quality is critical. Aerodoc, with its global network of agents in over 172 countries, delivers flexible solutions designed to adapt to client growth.
Skipping Regular Service Evaluations
Periodic audits are key to confirming that the provider meets agreed-upon standards and identifies improvement areas. This practice fosters a dynamic customer-provider relationship that remains aligned with business objectives.
The Evolution of Warehousing: From Physical Storage to Integrated Solutions
The warehousing sector has evolved from being merely a storage service to becoming a pivotal component of the modern supply chain. With the integration of advanced technologies, such as the ERP systems employed by Aerodoc, warehouses have transformed into intelligent logistics centers that drive operational efficiency and innovation.
In response to shifting market demands, innovative providers like Aerodoc have introduced hybrid models. In these arrangements, customers use their own warehouses while outsourcing operations such as inventory management, transportation, regulatory compliance, and more. This flexible approach empowers businesses to maintain control over their assets while benefiting from the expertise and scalability of a third-party provider.
Companies like Aerodoc showcase how warehousing has become an all-encompassing solution, seamlessly connecting all links in the supply chain—from inventory management to transportation and compliance. Therefore, choosing the right provider is necessary for any business aiming to scale and remain competitive in a globalized marketplace.
Contact the team of experts at Aerodoc to learn more about their tailored services and how they can help your business thrive.
Q&A
- What factors are essential when choosing a warehousing provider? It’s key to define specific storage needs, research reliable providers, establish clear contracts, use appropriate technology like ERP systems, and maintain open communication.
- What are the most common mistakes when choosing a warehousing service? Focusing solely on cost, overlooking strategic location, neglecting security and compliance, underestimating scalability, and skipping regular service evaluations.
- How has warehousing evolved in the supply chain? Warehousing has shifted from simple storage to a vital logistics component, integrating advanced technologies like ERP to optimize inventory management and enhance traceability.
- Why is strategic warehouse location important? A strategic location reduces transportation costs and delivery times, boosting supply chain efficiency.
- How does technology enhance warehousing operations? Technology like ERP systems improves traceability, inventory management, and compliance, ensuring efficient and tailored processes for customers.
