What is third-party warehousing

What is third-party warehousing

With the continuous development of cross-border e-commerce, while the scale of enterprises continues to grow, third-party warehousing and hosting services will be required. So, what is third-party warehousing?

01 Application Scenarios

In essence, third-party warehousing is a partnership between production enterprises and professional warehousing; It is because of this partnership that third-party warehousing companies, compared with traditional warehousing companies, can provide shippers with storage, loading and unloading, LLX, order sorting, spot inventory, in-transit mixing, inventory control, transportation arrangements, information and other logistics services required by shippers.

Third-party warehousing services generally cover the following:

Cargo warehousing: Third-party logistics companies provide professional storage facilities, including warehouses, shelves, storage yards, etc., to properly keep customers' goods.

Goods management: The third-party logistics company is responsible for the management of goods warehousing, warehousing, inventory, classification, sorting, etc., to ensure the inventory and flow control of goods.

Order delivery: Third-party logistics companies based on customer order information, fast and accurate delivery services, including goods picking, packaging, packaging and shipping.

Inventory management: third-party logistics companies according to customer demand and sales situation, inventory planning and management to reduce inventory costs and ensure the supply of goods.

Information Management: Third-party warehousing services are often equipped with advanced warehouse management systems (WMS) to track the incoming and outgoing of goods and inventory status in real time to provide customers with accurate inventory information.

After-sales service: third-party logistics companies provide timely after-sales service in the warehousing and distribution links, including return and exchange processing, after-sales support, etc.

02 Features of third-party warehousing

01 Effective use of resources

The use of third-party storage is more effective than self-built storage to deal with the light and peak season storage problems of products that are common in seasonal production, and can effectively use equipment and space. At the same time, the management of third-party warehousing is professional, and management experts have more innovative distribution concepts and more methods to reduce costs, so the logistics system is more efficient.

02 Expand the market

Shipment number: that is, the shipment number created by the seller in the Amazon background to be sent to the Amazon warehouse, unique, in the format of FBAXXXXXXX. 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 the shipment number U001, U002, and is the outer packing box identification of the goods confirmed by Amazon warehouse when receiving the goods.

03 Reduce transportation costs

Third-party warehousing companies handle a large number of goods from different owners at the same time, and after LCL operations, transportation costs can be greatly reduced through large-scale transportation.

04 New market testing

When promoting existing products or launching new products, shippers can use short-term third-party warehousing to examine the market demand for products. When a company tries to enter a new market area, it takes a long time to set up a distribution facility, which can be achieved through a third-party warehouse network.

Third-party warehousing, also known as third-party logistics warehousing, refers to the business model in which an enterprise entrusts its goods to an independent third-party logistics service provider for warehousing management and logistics distribution.

In this model, enterprises no longer need to own and manage the warehouse facilities, but the warehousing and logistics links are completed by professional third-party logistics companies.