Although there are a lot of companies in the country, a lot of them will not have the facilities to store bulk orders of goods when they come into the country, or when they have been manufactured. To this end, some third party companies have constructed such facilities and also offer other services too. Contract warehouse services are ideally placed to hold goods, under temperature controlled conditions if necessary, before delivering them on to designated addresses around the country. In fact, 3PL (third party liability) is also another way of doing the same thing.
These facilities make it possible for companies to buy goods in huge amounts until they are needed on the factory floor or in outlets around the country where they will be sold on in retail facilities. For example, one company may import goods from outside the country. This may be goods for a specific holiday so the company will be expecting to sell masses of the goods.
The facility will not only store them in the correct way, it will also break down the loads, maybe repacking in advertising boxes for the importing company, before taking them across the country to where they have been ordered. This takes so much strain off the importing company since they will not have to hire extra workers or worry about the storage etc.
When it comes to food, these facilities also have to be temperature controlled to make sure that the food is kept in good condition, and also that it does not stay in the place for too long also. This could be fresh seafood, which must come in, be repackaged and then sent out in a matter of hours or a day, to frozen food which must be kept solidly frozen. In fact, without this kind of facility, most of us would not have that cheap turkey for Thanksgiving!
So really, these third party companies make it possible for us to have the goods that we need all year round, plus they help to stabilize the price of the goods too. Because goods are normally cheaper per unit when bought in huge bulk, the knock on effect is that we, the public, feel the benefit too.
These third party companies also have sister companies which usually print cartons and boxes for the importers too. This one stop shop approach is fast becoming the best way to do business and, along with the ability to repackage everything on site, it also provides free advertising on the cartons too. This kind of double whammy makes it very attractive to exporters and importers everywhere, or even for those companies which supply chain stores all across the country. The organizing is taken care of by the third party company leaving the originating company free to sell the goods and do the marketing. Because of this, the company could well grow progressively but without the need to tie up capital in buildings which would remain empty for long periods during the financial year.
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