A well-maintained inventory is a crucial aspect of 3PL logistics and warehouse management. It also ensures that inventory management costs are kept to a minimum without disturbing customer service. Stock management is covered under warehouse operations and consists of the assignment of locations, inventory traceability or stock management methods (such as FIFO, FEFO, or LIFO), and many others. If you also get puzzled by these puzzling terms read this blog to learn more about the What is Stock Storage in 3PL Logistics and various strategies for the effective inventory management.
Businesses engaging with 3PL services can streamline their supply chain, avoid the need for large-scale warehousing, and ensure efficient time management by learning about stock storage. In this blog, you will deeply cover the different aspects of stock storage in 3PL and the key differences between stock control, stock management, and stock optimization. By learning these key details you will get meaningful insights into how you can optimize your inventory for smooth operations around the year.
What is Stock Storage in 3PL Logistics and What Are Its Different Types?
Stock storage in 3PL is concerned with storing products in a warehouse or distribution center until they get used or distributed. Stock storage is an essential component of supply chain management and needs to be continuously maintained for efficient supply chain distribution. 3PL logistic providers use their warehouses and distribution centers. The different types of stock storage strategies implemented in the 3PL logistics operations are mentioned below:
Bulk Storage: The most common type of stock storage involves storing large quantities of a single product. This stock storage is mostly suitable for those products that do not require specific storage conditions and usually have a longer shelf-life.
Temperature-Controlled Storage: The stock storage that demands specific storage conditions, especially temperature-related. This strategy is usually adopted for pharmaceuticals, perishable goods, and electronics. The 3PL warehouse providers use different strategies to control temperature and set them in a specific range.
Mezzanine Storage: The use of a raised platform for storing the goods and products come under the Mezzanine Storage. It is an effective strategy for increasing the storage capacity of the warehouse. This type of stock storage is suitable for products that have a small footprint and can be stacked.
Rack Storage: The stock storage that involves storing products on the shelving units. The stock storage is suitable for products that need to be stored off the ground and require easy access.
Effective Strategies to Maintain Stock Storage in 3PL Logistics
Inventory management is a crucial aspect of making manufacturing operations more efficient. Stock storage is the central component of inventory management and requires strategic actions to preserve the quality of stored goods. Give a read to these effective strategies that 3PL logistic providers adopt for the management of stock storage.
Streamline the Warehouse Layout: One effective strategy to maintain stock storage is by organizing the arrangement of space within a warehouse also called warehouse layout. This will help you utilize the maximum space in your warehouse and reduce mistakes, accidents, and injuries.
Use of Efficient Order Management Processes: Implementing an efficient order management process is a useful way to manage your stock storage effectively. The order management process should integrate with the inventory management system, enable order tracking, provide real-time order status updates, and automate order fulfillment processes.
Regular Audits for Stock Storage Operations: Staying updated about the stock storage operations can help you tackle any upcoming problems or identify inefficiencies and areas for improvement. Conduct regular audits track inventory turnover, and analyze your stock storage processes to deal with any inefficiencies.
Using a Robust Inventory Management System: Many 3PL providers use effective inventory management systems for managing stock storage. The system helps you stay on track and get real data on the products to make data-driven decisions.
Best Practices in 3PL Warehousing for Inventory Management
3PL warehousing is driven by managing the several components of supply chain management of the business. The 3PL companies are responsible for managing the storage and distribution of goods for their clients, which makes efficient inventory management vital for smooth operations and customer satisfaction. The different ways to efficiently manage the inventory of businesses help them optimize their processes, reduce costs, and enhance customer service are elaborated below:
- Use of Key Performance Indicators (KPIs)
- Utilizing the Implementing Cross-docking
- Making the right choice between First-In-First-Out (FIFO) and Last-In-First-Out (LIFO)
- Staying updated on the inventory information
Conclusion
Stock storage is central to inventory management in 3PL logistics. Learning about various strategies to efficiently manage stock storage is crucial for robust supply chain management. The strategies discussed in this blog will help you gain valuable insights into how to manage stocks of different types.
