It’s a common mantra among businesses every year. It goes something like, “I would have had a better year profit-wise if it wasn’t for my overhead expenses.” Those businesses actually could have had a more profitable year if they used the services of a third party logistics provider (3PL). At Brendamour Warehousing, Distribution & Services, we always welcome the opportunity to show businesses how our warehousing, distribution and logistics services can turn ending the year with a so-so profit into one with a big profit.
3 Key Ways We Can Lower Your Overhead
As you know, overhead, such as inventory, warehousing equipment and technology, storage facility expenses, product handling and processing, distribution, returns, etc., is a major drain on your resources. All these expenses exist even if your inventory isn’t moving or your warehouse isn’t at 100 percent capacity. But when you use Brendamour’s 3PL services, you eliminate these major overhead expenses. We can handle your entire supply chain logistics at a fraction of the cost of you doing it in-house. That’s because you pay only for the services you use. With a 3PL, you’re able to scale warehousing space, labor and distribution based on inventory needs, including slow, seasonal, or peak business periods.
In particular, there are three main areas where Brendamour can significantly lower your overhead expenses.
- Inventory control. Warehousing is typically the main overhead expense. With our state-of-the-art warehouse management system, we’re able to maximize your warehousing so you’re not carrying costly and unnecessary inventory. We store your inventory, pick and pack orders and transport them so you consistently maintain the proper just-in-time inventory system balance.
- Logistics management. Managing logistics is another big draw on overhead expenses. Activities like order fulfillment, custom packing, light assembly, tracking and tracing orders, package labeling, billing, returns, etc., requires expensive IT solutions that need to be regularly maintained and updated. Since logistics is part of our business, we already have all the necessary equipment and advanced computer systems to manage the logistics functions for any type of company. By switching your logistics to us, you reduce your overhead expenses even more.
- Decentralized distribution. Since Brendamour has several warehouses, you can grow your business into new market areas without adding additional overhead expenses. In addition, because our warehouses are located near key transportation routes throughout the Midwest and have shipping agreements with different types of carriers that guarantee we receive the lowest transportation rates available, your overhead expenses for distribution will be significantly less than what you are paying now.
Lift Your Overhead Burdens
Just imagine your business without having to maintain a warehouse, perform inventory control, spend money to update warehousing and distribution technology, fill orders, manage special fulfillment requests from customers, handle returns, or hire and train extra help during holiday or other peak seasons. You’re seeing an image where you can allocate more resources to core business functions, right?
When you think about it, focusing on the core activities is what brings success and with most businesses, warehousing, distribution and logistics are not core competencies. To gain the competitive edge, it’s important to rein in overhead costs so the savings can be used on enhancing core activities.
Brendamour Warehousing and Distribution makes it easy for you to make the transition. And just think how much better you’ll feel after lifting that overhead burden from your bottom line. Contact us today to get started enjoying lower operational and administrative overhead costs.