With the continuous development of cross-border e-commerce and the continuous growth of enterprise scale, third-party warehouse allocation and custody services will be required. So, what is third-party warehousing?
Third party warehousing, also known as third-party logistics warehousing, refers to the business model in which an enterprise entrusts its own goods to an independent third-party logistics service provider for warehouse management and logistics distribution.
In this model, enterprises no longer need to own and manage warehouse facilities themselves, but instead entrust the warehousing and logistics processes to professional third-party logistics companies.
01 Application Scenario
Essentially, third-party warehousing is a partnership established between production enterprises and professional warehousing; It is precisely because of this partnership that third-party warehousing companies, compared to traditional warehousing companies, can provide shippers with a complete set of logistics services such as storage, loading and unloading, LCL, order classification, spot inventory, in transit mixing, inventory control, transportation arrangements, information, and other requirements from shippers.
Third party warehousing services generally cover the following contents:
Goods warehousing: Third party logistics companies provide professional warehousing facilities, including warehouses, shelves, yards, etc., to properly store customers' goods.
Goods management: Third party logistics companies are responsible for managing goods such as inbound, outbound, inventory, classification, and sorting, ensuring inventory and flow control of goods.
Order delivery: Third party logistics companies provide fast and accurate delivery services based on customer order information, including picking, packaging, packaging, and shipping of goods.
Inventory management: Third party logistics companies plan and manage inventory reasonably based on customer demand and sales situation to reduce inventory costs and ensure goods supply.
Information management: Third party warehousing services are usually equipped with advanced warehousing management systems (WMS), which are used to track the entry and exit of goods and inventory status in real-time, in order to provide customers with accurate inventory information.
After sales service: Third party logistics companies provide timely after-sales service in the warehousing and distribution process, including return and exchange processing, after-sales support, etc.
02 Features of third-party warehousing
01 Effective utilization of resources
Utilizing third-party warehouses is more effective than self built warehouses in dealing with the storage issues of seasonal products during low and peak seasons, and can effectively utilize equipment and space. At the same time, the management of third-party warehousing is professional, with management experts possessing more innovative distribution concepts and mastering more methods to reduce costs, resulting in higher efficiency of logistics systems.
02 Expand the market
Shipment number: refers to the shipment number created by the seller in the Amazon backend to be sent to the Amazon warehouse, in the format FBAXXXXXXX. The shipment label refers to the label posted on the outer box of the package. A shipment number may have multiple boxes, which will be reflected in U001 and U002 of the shipment number. It is the identification of the outer packaging box of the goods confirmed by Amazon warehouse upon receipt.
03 Reduce transportation costs
Third party warehousing enterprises can simultaneously handle a large number of goods from different shippers, and after consolidation operations, they can greatly reduce transportation costs through large-scale transportation.
04 New Market Testing
When promoting existing products or launching new ones, shipowner enterprises can use short-term third-party warehousing to assess the market demand of the products. When a company attempts to enter a new market area, it takes a long time to establish a distribution facility, and through a third-party warehousing network, the company can achieve its goals.
Source: Souhang Network
