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What Factors Should I Consider when Choosing a Warehouse Location?

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With demand for industrial space increasing in the third quarter (57 million SF absorbed nationwide), more businesses than ever are looking for warehouse space. Whether companies are looking to outsource to a 3PL or to plant their own warehouse, determining the right location is the most crucial step. It can be the difference in how efficient and successful a business is. Here are the most important factors to consider in this process: Available space: The first step in locating a warehouse is finding open space. Companies must find a warehouse that can handle all of their requirements, though this may prove difficult in a scarce real estate market. Finding space may also include the ability to scale up in growth periods, not just finding sufficient space for your current product. If your storage needs are evolving, and you need to prepare for growth, outsourcing to a 3PL with public warehousing may be the best option. Price/Taxes: Doing a full cost analysis is crucial for any business before converting warehouses. This analysis includes everything from the initial cost of moving, building utilities, and local/state taxes. Massive, urban areas typically require higher prices, while smaller cities generally come with fewer expenses. Research the local government policies of the desired warehouse location as the local taxes and regulations can vary significantly. Once a complete cost breakdown is finished, the decision can become clear on where to warehouse. Infrastructure: The ability to have easy access to roads, interstates, or railways is critical for effective transportation. The main factor for most distributors is being located in a city with two or more highways intersecting. Being in a transportation hub allows for easy moving in all four directions and lets businesses pay less for fuel consumption. If the infrastructure is the most significant factor in locating a warehouse, look toward established markets and major highways. Proximity to consumer base: Having the consumers of your product close to the warehouse location helps distributors tremendously. Not only does it cut costs on freight, but it also allows faster deliveries to consumers. Determine the region or state where your most substantial customer base is and find a warehouse in that area to make quicker and cheaper deliveries. While being in a bigger market may be more expensive, going to one of these markets will likely bring a business closer to its consumers. Spartan Logistics has 18 strategically placed locations throughout the country. We offer solutions for businesses in various industries and have decades of experience in public and contract warehousing. To view the full list of our locations, click here.  Read More

Topics: Rise of 3PL Services, Future of Logistics, Supply Chain Strategy

Understanding Differences in Transportation Methods

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When a customer outsources their transportation to a third-party logistics (3PL) company, they has several different options on which method of freight to use. Choosing the right system is crucial for both the customer and the provider to run an efficient operation. Each method comes with different costs, time, and effort required. Therefore, each company needs to understand the transportation options available through a 3PL. Full-Truckload (FTL): FTL are shipments of freight which are loaded to either a trailer’s maximum capacity or maximum weight. This method is common for businesses with large shipping volumes (typically above 20 pallets) who are looking to maximize their product per truck. FTL service also ensures that your product is the only one on the truck and is delivered on time. Less-Than-Truckload (LTL): LTL is any shipment of freight which does not require use of an entire trailer. For businesses with smaller volumes, (1-10 pallets per truck) LTL shipments are beneficial. Another benefit of LTL shipping is many 3PL’s will combine multiple LTL customers into one truckload, which saves costs on the use of trucks. However, this method can result in shipments which arrive late because a driver then has multiple stops to make in one trip. Intermodal: Intermodal shipments consist of freight which is moved by using two or more modes of transportation. One common application of intermodal shipping is product that is transported by rail or boat, but the warehouse is in a site which neither are easily accessible. The freight must then be moved by truckload to the site where it will be delivered to the final destination. Businesses typically don’t prefer to move freight this way because it is more expensive and requires multiple carriers, but it is often necessary for longer distance trips. Over-the-Road (OTR): OTR transportation is freight which is carried over long distances, typically by FTL. It requires significant time and cost to move when a business utilizes a warehouse far from the final shipping destination, but allows a driver to be fully dedicated to the truck and its security. We have a vested interest in bringing you the most efficient transportation services. We want to make it our business to make you successful. To learn more about Spartan's transportation and logistics and Services, contact our sales team.  Read More

Topics: Rise of 3PL Services, Rise of 3PL Fulfillment Services, Intermodal transportation

Choose a rail warehouse in Toledo, Ohio

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As the economy begins to rebound from an extended shutdown, the need for warehouse space is only going to increase. This increase can be primarily attributed to a move away from traditional retail and toward order fulfillment centers. However, it is not often that 90,000 square feet of quality warehouse space with easy rail access comes available. The vacancy rate for industrial property in the Toledo market remains very low at 4 percent, indicating a shortage in warehouse space. As a result, manufacturers may struggle to find space to store their products and will look to locate a 3PL provider.  Read More

Topics: Toledo Ohio, 3PLs in Toledo Ohio, Warehouses in Toledo Ohio, Rise of 3PL Services, Rise of 3PL Fulfillment Services, Warehouses with rail capacity

Warehouse Investment 101

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Purchasing a warehouse or leasing warehouse space for your company can provide you with many different benefits: It can give you a place to store overflow at your facility You can build inventory off-site Allow you to access storage for the products you sell frequently. If you don’t have the capital at this time, scroll down to Consider partnering with a 3PL. Before you decide to obtain a warehouse, consider the following:        Read More

Topics: Revolutionizing logistics, Supply Chain Strategy, Logistics News, Regional Distribution Center, Supply Chain Risks

How should 3PL's React Coming out of this Global Recession?

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Warehouse managers have been forced to change many of the procedures they operate by over the past two months due to COVID-19. From sanitation guidelines to interrupted supply chains, 3PL companies have had to adapt with the changing times. These events have led to significant delays in operations and some decline in overall business.  However, as we move into this post corona virus world, the demand for warehouses is expected to surge for several reasons.  Read More

Topics: Rise of 3PL Services, Rise of 3PL Fulfillment Services, Future of Logistics, Logistics News

The Coronavirus Impact and How 3PL's Should React

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Everyone is reacting to the Covid-19 virus and the uncertainty and stress of the resulting changes are making us all fearful. Take a deep breath and remember our priorities: Care for people and prevent the spread of any illness Provide for continuity of operations to service customers Minimize financial impacts to employees, customers, and our operations. Internally, Spartan Logistics will take all conceivable actions to protect and inform our team and their families.Once this is accomplished, we have an obligation to consider the impact the virus has on our customers and how we can assist them.  Major retailers such as Apple have reported that a prolonged outbreak could interrupt its supply chain, while Amazon has expressed concern that it won’t be able to import enough inventory to meet its annual Prime Day obligations. As one of China’s four central railway hubs, a virus outbreak quickly spread along the supply chain to the rest of the world, with outbreaks in 47 countries. Nearly 95% of Fortune 1000 companies are experiencing supply chain distruptions due to the rippling effect of the virus. Companies of less than 100 employees are likely going to be effected as well, seeing delayed goods, unfulfilled orders and unpaid invoices.  Read More

Topics: Revolutionizing logistics, Supply Chain Strategy, Logistics News, Regional Distribution Center, Supply Chain Risks

The Generation Z Evolution and Why 3PL’s Should Be Ready

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Why is there a Shortage in Warehouse Space?

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Some days this feels like the best of times for those who operate logistics companies and who operate industrial real estate, but the worst of times for those looking for a bargain on warehouse space. There has been significant economic growth, and the U.S. industrial market continues to expand. Nationwide, warehouse vacancy decreased to 4.3% in the first quarter of 2019. This is near the lowest this number has been since this data began to be tracked in 1980. In certain markets, it is even lower, sometimes just a few properties. Moreover, the Class A and B space was the first to be absorbed; much of what is currently available is Class C and D, and these are mostly 50-year obsolete properties and shuttered manufacturing plants. In response to this trend, new warehouse construction is going through the roof, with 258 million square feet in new space under construction, the majority of which are speculative buildings. However, this supply of new warehouses is still less than current demand. Are you challenged to find high quality warehouse space and service providers where and when you need them?  Spartan Logistics has been planning for this day for 30 years.  Read More

Topics: Diminishing Warehouse space, NAI Harmon Group

Consider a Logistics Warehouse/RDC in Napoleon, OH

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 As the economy continues to prosper, e-commerce sales have become a way of life and manufacturing production overruns are becoming increasingly familiar. So where do you turn? You could consider an expansion to the existing property or locate a 3PL warehouse to store 50,000-100,000 square feet of production overruns as inventory and manage it for you. It’s not often that industrial property with >100,000 square feet is readily available. Q1 2019 saw a slight uptick in vacancy rate to 5.0 percent—so all eyes are on leasing activity now. Spartan Logistics customers reach out knowing our unique expanded 3PL services include our affiliation with NAI Harmon Group of Toledo, OH, and Logan Creek Construction of Oregon, OH. Having these resources gives Spartan Logistics an opportunity to differentiate and locate available industrial real estate options for our potential and existing customers with a diverse portfolio of commercial property all across the US.    Read More

Topics: Warehouses in Toledo Ohio, Industrial Real Estate Market, Supply Chain Strategy, Regional Distribution Center, NAI Harmon Group

Spartan's Fort Smith, AR Warehouse Reduces Risk at the Rail Car

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Railways keep most industries moving, quite literally. Unloading rail cars in a warehouse setting need to be executed quickly and safely upon arrival, so they are well on their way.  So How Does Spartan Logistics Unload Rail Cars While Reducing Risk and Improving Production? With a collaboration of Spartan's Warehouse Manager, a local vendor with a national equipment manufacturer account, and a Director of Maintenance at the Spartan corporate level — the overall solution agreed upon was centered almost exclusively around the safety and increased productivity of a high-end rotating clamp truck to unload 2-3 ton paper rolls from rail cars from the Fort Smith, AR rail access warehouse.    Read More

Topics: Rise of 3PL Fulfillment Services, Supply Chain Strategy, Logistics News, Warehouses with rail capacity, Logistic Leaders