Los Angeles Logistics: Your Gateway to Cost-Effective 3PL Warehousing

Summary:

• A good 3PL provider with a Los Angeles warehouse can improve your logistics and help you stay cost-effective.
• Location, labor, workflows, space management, and strategic support all add to the benefits from finding the right warehouse.

Los Angeles sees millions of shipping containers pass through its ports every single month. If you want to thrive in such a congested market, you need a good plan.

Partnering with third-party logistics can help you optimize and stay ahead of the competition. Today, you can learn more about Los Angeles Logistics and how access to a local warehouse can improve your outlook.

Location

They say location is everything for a reason. Easily one of the largest contributing factors to logistical costs, the 3PL warehouse in Los Angeles’ location can affect more than just fuel costs. It impacts regulations, shipping volume, delivery times and a whole lot more.

A warehouse near a port lowers fuel costs with every single delivery. Lowering that initial turnaround gets your goods off of the ships and into the warehouse faster and cheaper with fewer chances for something to go wrong. These savings add up quickly.

Simultaneously, warehouse location can lower the overall footprint of your Los Angeles logistics. Items that stay local spend less time on the same trucks as items that have a longer route. This small efficiency trends toward significant footprint reductions over time.

Lastly, your warehouse location impacts your adaptability and scalability. Being close to a port is important, but you want a warehouse with easy access. If trucks are stopped in traffic jams, or if your warehouse has limited direct access, you might see shipping bottlenecks that are easily fixed with a change of venue.

Labor

Labor is your next major concern with 3PL warehousing. Los Angeles logistics providers take many different approaches to staffing and management, and those decisions will impact the price of a contract.

Smart labor management can keep overhead low while leaving room for adaptations when demand changes suddenly and voluminously.

As an example, a 3PL warehouse in Los Angeles can keep a relatively small core crew running the warehouse. This minimizes labor costs while keeping a knowledgeable, experienced staff that can run a clean workflow. When demands spike, the provider can hire temporary workers to fill needs and ebb and flow appropriately.

Workflows

Separate from the idea of labor management, clear workflows help 3PL providers control costs for Los Angeles logistics. When task designation is clear, you and your provider know your roles, and you can both plan accordingly.

Here’s an example: A 3PL warehouse might only provide storage services. That means that they do not transport goods to or from the warehouse, and they do not add picking or sorting services. 

Knowing this, you can efficiently plan shipments to and from the warehouse, and you know that every item will stay packed on a pallet while it sits in that warehouse. You don’t have to waste resources on sorting or picking in the wrong location, and your 3PL contract can be streamlined because the reduced responsibilities lower their overhead.

It’s one of many ways a Los Angeles logistics provider can run a warehouse, but it highlights how a clear division of labor allows you to make smart plans.

Space

It’s easy to assume that a large 3PL warehouse in Los Angeles provides more options, but this can create a two-edged sword. Larger warehouses increase expenses. If that space is not utilized well, those expenses creep into your service contract.

You do need a provider with flexible warehouse space that meets your demand and accommodates changes in that demand. At the same time, you don’t want to foot the bill for too much extra space.

The solution?

Your 3PL provider should strategize to accommodate multiple clients. They can keep much of the warehouse full throughout the year, lowering your costs, while leaving some space for surges.

Red Tape

Importing is complicated. Many fingers touch the pie, so to speak.

It’s essential to understand who handles each aspect of Los Angeles logistics. This impacts customs, regulations, taxes, and the many intricacies that make logistics so challenging.

When you utilize a 3PL provider with clear processes, the red tape questions are demystified. You know your exact place in the operation, and that allows you to ensure that the right people handle your logistics red tape correctly.

Cummins Can Support Your Logistics

Cummins has been operating in Los Angeles since 1976. With a 3PL warehouse in Los Angeles, you get the benefits of a prime location paired with a seasoned company that knows how to leverage its expertise.
If you want to see how to master Los Angeles logistics, talk to an expert today.