What is third-party storage and what are its advantages?
What is third-party storage and what are its advantages?
With the continuous development of cross-border e-commerce, third-party warehouse distribution custody services will be required while the scale of enterprises continues to grow. So, what is third-party warehousing?
Third-party warehousing, also known as third-party logistics warehousing, refers to the business model in which enterprises entrust their goods to independent third-party logistics service providers for warehousing management and logistics distribution.
In this mode, enterprises no longer need to own and manage warehouse facilities themselves, but hand over the warehousing and logistics links to professional third-party logistics companies.
01 Application scenarios
In essence, third-party warehousing is a partnership established between manufacturing companies and professional warehousing; it is precisely because of this partnership that third-party warehousing companies, compared with traditional warehousing companies, can provide cargo owners with storage, loading and unloading, and consolidation. , order classification, spot inventory, in-transit mixing, inventory control, transportation arrangements, information and a complete set of other logistics services required by cargo owners.
Third-party warehousing services generally cover the following:
Cargo warehousing: Third-party logistics companies provide professional warehousing facilities, including warehouses, shelves, yards, etc., to properly keep customers' goods.
Cargo management: Third-party logistics companies are responsible for the management of goods in, out, inventory, classification, sorting, etc. to ensure the inventory and flow control of goods.
Order delivery: Third-party logistics companies provide fast and accurate delivery services based on customers' order information, including picking, packaging, packaging and shipping of goods.
Inventory management: The third-party logistics company plans and manages the inventory reasonably according to the customer's demand and sales situation, so as to reduce the inventory cost and ensure the supply of goods.
Information management: Third-party warehousing services are usually equipped with advanced warehouse management systems (WMS) to track the incoming and outgoing and inventory status of goods in real time to provide customers with accurate inventory information.
After-sales service: third-party logistics companies provide timely after-sales service in the warehousing and distribution links, including return processing, after-sales support, etc.
02 Characteristics of third-party warehousing
01 Effective use of resources
The use of third-party warehousing is more effective than self-built warehousing in solving the problem of low- and peak-season storage of products that are common in seasonal production, and can effectively utilize equipment and space. At the same time, the management of third-party warehousing is professional. Management experts have more innovative distribution concepts and know more ways to reduce costs, so the logistics system is more efficient.
02 Expand the market
Shipment number: It is the shipment number created by the seller in the Amazon background to be sent to the Amazon warehouse. It is unique and the format is FBAXXXXXXX. The shipment label refers to the label posted on the outer box of the package. One shipment number may have multiple boxes, which will be reflected in U001 and U002 of the shipment number. It is the outer box identification of the goods when the Amazon warehouse receives the goods.
03 Reduce transportation costs
Third-party warehousing companies handle a large number of goods from different cargo owners at the same time. After consolidation operations, transportation costs can be greatly reduced through large-scale transportation.
04 Testing new markets
When cargo owners promote existing products or launch new products, they can use short-term third-party warehousing to examine the market demand for the products. When a company tries to enter a new market area, it takes a long time to establish a distribution facility, and through a third-party warehousing network, the company can achieve its goal.
