Every new year brings exciting new trends, and the public warehousing industry is no different. While they may not be the latest fashion trend or color of the year, the 2016 trends in public warehousing and distribution will be beneficial for both businesses and their customers.
Take a look at these five developing trends that Brendamour Warehousing and other industry leaders have identified as the top public warehousing and logistics trends for 2016.
1. The Internet of Things
The Internet of Things (IoT) is a network of physical assets that are embedded with sensors, software, or other electronics to give them network connectivity capability so they can collect, send, receive, and exchange data.
A lot is being discussed about the IoT and how it can be applied to different applications throughout various industries. In logistics, the IoT allows businesses with enterprise resource planning (ERP) software to integrate all aspects of inventory, warehousing, and distribution activities between the public warehouse it partners with and that facility’s warehouse management system and transportation management system.
This network of connected devices, in turn, gives businesses mobile access to their performance data at any time. This allows for increased accuracy, improved efficiency and reduced costs, essential ingredients for competing in today’s global marketplace.
2. Electronic Data Interchange
Real-time communications are essential for a smooth running supply chain. An electronic data interchange (EDI) enables businesses to exchange logistics information electronically in a standard format so all vendors involved in producing and moving their goods are kept in the loop.
While some companies already use EDI, those who don’t will find it challenging to conduct business in 2016 and beyond. EDI fosters compliance throughout the entire supply chain, so 2016 will see more companies embedding EDI in their applications.
3. Inventory Optimization
As technology allows businesses to gather more data about consumers’ buying habits, market trends, etc., greater opportunities for inventory optimization will exist in 2016.
Companies that utilize big data analytics will attain smarter solutions to improve their inventory planning, including forecasting, demand planning, and speedier order fulfillment across all channels.
Furthermore, by working with a public warehouse, businesses can optimize floor space utilization and warehouse inventory according to the findings of their big data analyses. These efforts will result in substantial bottom-line savings.
Businesses that optimize inventory will also realize a lean and stable supply chain, with an emphasis on enhanced efficiencies and a maximized workflow.
4. Traceability Through the Entire Supply Chain
In most every type of business, there is some form of compliance, whether established by the business itself, or required by government or industry regulations. In 2016, the focus on compliance will extend to traceability.
Real-time traceability allows businesses to see where their goods are at the moment by tracking the chain of custody. This encompasses not only what’s in the warehouse facility, but also from where the goods originated, the various transportation paths they take within the supply chain, any modifications made to the goods or packaging along the way, and their final destination.
More importantly, this information can be shared among everyone involved in the supply chain, fostering real-time accountability and quality of product.
5. Collaboration With Third-Party Logistics Providers
A full integration of all systems cannot be accomplished without collaboration among all those involved in a company’s supply chain. But in 2016, businesses will more fully recognize the value of partnering with a third-party logistics (3PL) provider.
A 3PL goes beyond public warehousing and distribution to offer other key logistics services. As an example, Brendamour Warehousing and Distribution is a 3PL because it offers a full array of logistics services, including warehousing, distribution, processing, packing, contract trucking, and importing and exporting.
Collaborating with a 3PL instead of doing logistics internally or using separate vendors affords businesses the opportunity to tap into vast industry knowledge and trends.
Businesses also realize discounted pricing that 3PLs are able to secure from their logistics partners, including freight and distribution carriers.
Get Ready for the New Year
Facing a new year brings both excitement and challenges. However, businesses can ease those challenges by making a resolution to switch to a public warehouse with 3PL services.
Brendamour Warehousing can help you identify your needs and establish a plan of action to ensure your supply chain and associated logistics work efficiently and deliver savings to your business.
To get started, simply contact Brendamour today for a free consultation.