Pick and Pack
Warehousing, the storage of the actual product, is one of the most labor intensive and time-consuming aspects of running a business. Efficient warehousing strategies result in reduction of losses due to damage, better inventory controls and reduced labor costs. An effective stock management system is crucial to the important warehousing aspect of moving product from the production line to the retail outlet, to the customer.
What is pick and pack?
One of the most important aspects of warehousing is the management of “pick and pack”. Pick and pack refers to a warehouse management system which allows product to be stored and retrieved in the most efficient manner possible. Imagine a room with boxes stacked in every corner. Finding one specific box in the piles would be nearly impossible. A pick and pack system organizes the product in a way that allows for efficient retrieval.
The storage of merchandise requires attention to concerns like the prevention of damage to the product and efficient use of space. By stacking the boxes or pallets in a prescribed manner, less space is used, reducing cost. The more efficiently merchandise is stored, the more easily it can be retrieved for packing and transit, reducing both the time shipping and receiving take to accomplish and the manpower needed.
Why is pick and pack important?
A pick and pack system is crucial to managing stock and inventory. Product loss is a high cost of doing business. Damaged product means lost income. A pick and pack system reduces loss due to damage. Inefficient warehousing not only causes damaged product, it can mean longer shipping and handling times when product can’t be easily retrieved for shipping. Customers require reliable, quick delivery of their products. When products cannot be delivered in good condition and in a timely manner, customers will turn elsewhere for their product needs and sales will go down. Efficient warehousing supports sales and service and increases customer satisfaction.
How can a 3PL company help?
A third-party logistics, or 3PL company, is a company which handles outsourced aspects of logistics like warehousing, inventory control, shipping and receiving, even branding and packaging functions. Since a 3PL company is solely focused on these tasks, it brings a level of expertise that is difficult to accomplish for a single company.
3PL companies tend to specialize in an industry or type of product, and so have experience with the challenges of warehousing a particular product. This expertise means that companies contracting with a 3PL company receive high-quality, cost-efficient warehousing services that help reduce stock losses, damage to inventory and shipping times, resulting in higher customer satisfaction and more efficient operations.
By outsourcing pick and pack to a 3PL, a company can take advantage of a streamlined, integrated system of shipping and receiving. The optimized process creates a more effective delivery system for the end customer, increasing customer satisfaction and loyalty. Since 3PL companies also offer branding and packaging services, brand recognition is increased as well, making a third party pick and pack system an excellent choice for a growing or established business.
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