Until only recently, most companies thought that they had to do everything on their own, in-house. They were sure that it was necessary to run each and every leg of the supply chain, from the procurement of raw materials to the shipment of finished products to customers . Then the concept of outsourcing reached the United States.
While the term can be tracked back to the eighties, it did not become an common pick until only recently. For some unnamed , unexplained reason, business executives finally realized aware that focusing on core competencies, i.e., the things that they do best , was likely more profitably than throwing money away on the things they that did poorly .
At the very top of the list was logistics. A relatively new industry at the time, logistics is a system that ensures the speedy and efficient bringing of goods and services to consumers . It does this by focusing on three essential services: storage, shipping costs and supply chain management. The most popular storage and shipping technique today is called pick and pack.
More often than not, businesses will outsource this essential service . Let us take a minute to explain why. Pick and pack shipping relies on access to large storage warehouses, which are quite expensive to own or rent. The items that are stored in these warehouses are stored in bulk and are only broken down or separated as needed.
For example, if a business is selling baseballs, they will not unload a large shipment and place each baseball on a ledge for easy access and eventual distribution . Rather, they will keep bulk shipments of the baseballs in large containers or on pallets until they are needed. This is the simple secret of the pick and pack warehouse. They rely on the efficient use of warehouse space to help them save money.
The reason that this service is often outsourced to third party providers is because they have access to warehouses and they know how to efficiently manage space for several clients at a time. This allows them to cut storage and shipping costs simultaneously.
With the help of computers, the innovative pick and pack warehouse runs like a clock . The computer generates a list of all orders and employees then “pick” these items off of the shelves and “pack” them for an forthcoming distribution . Probably the most complicated part of the process is making certain that bulk orders have all been unpacked and that staff members have easy access to them. Once this is done, coordinating shipping manifests is merely a matter of following the order forms.
—————————————————-
Article contributed by Southern Fulfillment Services, a leading fulfillment company, providing warehousing, transport and logistics services to business of all sizes. Southern Fulfillment Services (SFS) is a privately owned Florida based company with production facilities in Vero Beach, Florida, Harlingen and Palestine, Texas.