Running a warehouse operation is no small task. Keeping tabs on inventory levels, arranging shipments, ensuring timely deliveries—the complexity of the operation can quickly become overwhelming for even the most experienced logistics teams. If your warehouse isn’t running as it should be, then chances are you have a string of problems holding your business back.

Let’s examine some of the more common signs that your warehouse isn’t working and how partnering with a third-party logistics—3PL—provider, like American Warehouse Inc., can be the game-changer your business needs.

Signs Your Warehouse Isn’t Working


  • High Error Rates in Order: Fulfillment: If your customers are usually receiving wrong or delayed orders, then that is a surefire sign that your order fulfillment process needs some serious improvement. These can cause customer dissatisfaction, returns, and even lost revenue.
  • Inefficient Inventory Management: Overstocking or stock-outs are indicative of poor inventory management. Without real-time information or accurate forecasts from your inventory system, you may lose sales opportunities while capital is tied up in excess stock.
  • Inadequate Space Utilization: If you are running out of storage space, yet not operating at maximum capacity, then there may be some layout design problems, inefficiencies in racking systems, or other inventory placement issues.
  • High Operational Costs: Increasing labor, storage, and transportation costs can drain profitability. If your warehouse operations are not optimized, then you might be spending more than you should to keep things running.
  • A lack of scalability: Your current warehouse processes might be alright for your present volume, but will they be ready for growth? If your systems can’t scale, your business risks stagnation.


How 3PL Solutions Can Fix Your Warehouse Problems

  • Improved Order Accuracy and Speed: A 3PL provider uses advanced technology and proven processes to ensure that orders are picked, packed, and shipped with precision, which reduces error rates and increases customer satisfaction.
  • Advanced Inventory Management Systems: The 3PLs offer modern inventory management solutions that provide real-time visibility into inventory levels, predictive analytics, and fast and efficient replenishment processes to avoid both stockouts and overstocking.
  • Optimal Space Utilization: Through knowledge of warehouse layouts and logistics flow, a 3PL can redesign your storage systems to optimize the efficiency of available space and reduce wasted resources.
  • Cost Savings through Consolidated Operations: Using economies of scale, a 3PL will be in a position to negotiate better rates for transportation with carriers, further reducing overhead costs and eliminating efficiencies that bloat your operating costs.
  • Scalable Solutions for Growing Businesses: A good 3PL can scale with your business, providing flexible solutions that adapt to seasonal demand, business expansion, or market shifts without disrupting operations.