Los Angeles Logistics Efficiency Strategies for 3PL Cost Savings

The Bottom Line

• Careful location planning improves logistics efficiency by keeping warehouses close to ports and accessible by major population centers.
• Outsourcing can provide 3PL cost savings on labor and technology. Most especially, it can cut real estate costs while providing prime warehousing locations.
• Exploring proven transportation options, like cross-docking and transloading, can ensure timely delivery while cutting unnecessary steps.

Every company in the world wants effective and efficient logistics operations. But it’s not easy. 

There are so many variables to account for when it comes to making a timely and mistake-free delivery. From extreme weather to traffic, the potential sources of disruption are seemingly endless. A well-planned logistics strategy can, however, minimize the impact of these disruptions and keep your customers happy. 

Here are a few tried and true strategies to keep your logistics operations efficient and low-cost. 

1. Carefully Plan the Location of Your Warehousing Facilities

The key to logistics efficiency is minimizing the distance goods need to move. Optimizing the location of your storage facility can unlock these efficiencies. 

To keep it as simple as possible, your warehouses need to be located near other key points in the supply chain. If, for instance, your company imports goods from overseas, you must have a warehouse in close proximity to the port of entry. 

As an example, Cummins Logistics has a warehouse within a few miles of the Port of Los Angeles.

With that in mind, it’s best practice to locate your facilities in a location that’s equidistant to a nearby port and population centers. This can unlock logistics efficiencies by cutting down on costs such as gas while reducing the impact of unforeseen delays caused by weather and traffic.

2. Outsource Your Warehousing

Very few companies have the resources to build new warehousing facilities–particularly in areas in which land is expensive, like southern California. Partnering with a 3PL provider can be your company’s ticket to cost savings. 

Outsourcing your warehousing to a third party can create a range of logistics efficiencies for your business, with the most obvious one being that you don’t need to invest millions of dollars in building or leasing warehousing space. You also don’t need to worry about paying for energy costs and labor. Instead, you pay a monthly rate to have your items securely stored until they’re needed. 

3. Consider Your Transportation Options

Logistics is the art and science of moving items from one location to the next. You can usually discover new efficiencies when you focus on the means by which items are being transported between stages in the supply chain. 

For example, if you’re a company that sells goods that simply fly off the shelves, you can’t afford to have items stuck on a pallet in a warehouse facility. A 3PL vendor that offers choices like cross-docking services, in which teams unload outbound trucks, move items through the facility, and immediately place them on an outbound truck, can pay dividends in this case. 

Or, maybe you’re a company that needs to quickly transport goods from a maritime port to a broader inland transportation network. In that case, you will likely want to seek out a vendor with experience in transloading services. 

By mastering the movement of goods, your company can cut down on delayed deliveries and keep your customers satisfied. 

Create a More Efficient Logistics Operation Today

Cummins Logistics is here to help your company conquer supply chain logistics. Our facility in Commerce, CA is located within 20 miles of the Ports of Los Angeles and Long Beach, and downtown Los Angeles and Anaheim. We also have a skilled team that can offer services like cross-loading and transloading. 

FAQ

How far is Commerce from the Port of Los Angeles?

Commerce is roughly 20 miles north of the Port of Los Angeles and about 8 miles east of downtown Los Angeles.

How does outsourcing save money in logistics?

3PL cost savings primarily come from three benefits:

• 3PL vendors can service multiple customers in a single warehouse (or warehouse system), splitting labor and overhead costs across their customers and making it less expensive for each individual.
• A vendor with a warehouse already owns valuable real estate, saving you from steep initial costs. 

3PL vendors can specialize, allowing them to streamline their part in the supply chain, saving you costs associated with steep learning curves related to logistics efficiency.