Service Providers Must Step Up to Facilitate & Scale Omnichannel Retailers

Scott Hothem • February 21, 2012

Barrett Distribution Centers COO, Tim Barrett, provides 3PL perspective to concept presented in Dec. 2011 Harvard Business Review (HBR), “The Future of Shopping.”

A decade after the dot-com implosion, e-commerce is living up to its initial hype. For consumer goods manufacturers and retailers, morphing traditional brick and mortar and e-commerce retailing has become imperative to the success of their brands and companies.

World class third party logistics providers (3PLs) should be investing now in systems, processes and team training to provide the integrated solution these companies will need to fully leverage the advantages of selling in both channels. To succeed, this process must be seamless to the end consumer, the manufacturer, and the retailer.

We are early in the curve of e-commerce growth. Forrester Research estimates that e-commerce in theUnited Statesalone is nearly $200 billion, or 9% of retail sales. Five years ago, this number was 5%. E-commerce is likely to reach 15-20% of total sales within the next few years. And the business model is now highly profitable, unlike during the dot-com bubble of the late 1990’s: Amazon’s five year return on investment is 17%, whereas traditional discount and department stores average 6%.

Soon it will be hard to even define ‘e-commerce’ and harder still, to clearly delineate e-commerce sales and returns from brick and mortar sales and return activity in our facilities. Retailers and customers will be interacting simultaneously through multiple channels – websites, physical stores, kiosks, direct mail catalogs, call centers, and mobile devices. According to Darrell Rigby of Bain & Co in a recent Harvard Business Review article, unless conventional retailers adapt to these changes, integrating disparate channels into a seamless experience, they are not likely to succeed. Rigby coined the term, ‘Omnichannel retailing’ for this new retail environment.

Integrating the logistics backbone for these Omnichannel retailers requires collaboration and detailed planning. A critical first step is to provide the technology to manage one inventory for the entire enterprise. For example, the manufacturer or retailer may want to allocate certain SKUs or volumes of inventory for each segment of the business. In order to successfully support this strategy, the third party logistics provider must be able to dynamically manage these various inventory segments behind the scenes for the customer. Inventory will need to move seamlessly “on the fly” between segments in order to optimize the sell-through for the 3PL’s customers.

High levels of integration are required between segments to optimize sales. The systems of the third party logistics provider must communicate inventory levels real time to the customer’s websites and enterprise resource planning (ERP) systems. Sophisticated 3PLs are also able to manage fill rate rules, back orders, and replenishment functions on behalf of the client. These systems will optimize order fill rates and ultimately sales volume.

Successful 3PLs are also an asset to an integrated returns and reverse logistics operation. Cross-channel returns must be seamless to the client and the end consumer. Warehouse Management System (WMS) returns modules need to be adept at not only accounting for the return, but communicating in a timely manner to the client so that the end consumer is satisfied with a refund or replacement item the same day the return is received. After accounting for the return, inspecting and dispositioning the item, and satisfying the end consumer, theReturnsCenter should be accumulating returns data and reason codes, and converting this information into actionable reporting for the manufacturer or retailer. From these reports, market-driven companies can spot patterns, and make changes to ultimately improve the front end sales experience for their customers, improving satisfaction levels for the consumer with the first purchase and improving customer brand loyalty and reducing returns. For the manufacturer, this type of actionable knowledge can lead to improvements in product quality, or simply better information on the product that is provided to the consumer in their purchase process. Both improved product quality and consumer expectations will lead to higher brand loyalty and lower returns over time.

Taken together, these strategies will lead to increased sales and lower costs for our customers – really the ultimate goal of a world class logistics provider, and trusted partner to the innovating retail segment.

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Why Do Companies Choose a Warehouse Near a Port? (August 2026)

By Faith Artieda • August 21, 2026

Companies choose warehouses near ports to reduce transportation costs, speed up inventory movement, improve supply chain efficiency, and simplify the import process. By storing goods closer to where they enter the country, businesses can move products into inventory faster while supporting efficient distribution to customers and retail partners. Key Takeaways Warehouses near ports help businesses reduce inland transportation costs and accelerate the movement of imported goods. Port-adjacent facilities improve inventory availability, shorten lead times, and support more resilient supply chains. An experienced 3PL can combine a strategic port location with advanced technology and fulfillment expertise to streamline inbound and outbound logistics. Why Do Businesses Store Inventory Near a Port? For companies importing products from overseas, the journey doesn't end when a container reaches a U.S. port. Goods still need to be unloaded, transported to a warehouse, processed, and prepared for distribution. Choosing a warehouse near a port helps minimize the time and cost associated with moving products inland. Instead of transporting containers long distances before inventory becomes available, businesses can quickly receive, inspect, and store products close to the port of entry. This approach improves inventory availability and creates a more responsive supply chain, especially for businesses managing high-volume imports or seasonal demand. How Does a Port Warehouse Reduce Transportation Costs? Transportation costs can increase significantly once imported goods leave the port. A warehouse located nearby reduces the distance containers must travel before inventory is received, helping businesses lower drayage and domestic transportation expenses. It can also reduce handling throughout the supply chain, creating a more efficient flow of goods from arrival to fulfillment. For companies importing products regularly, these savings can have a meaningful impact on overall logistics costs. How Does a Warehouse Near a Port Improve Supply Chain Efficiency? Speed is one of the biggest advantages of warehousing near a port. When imported inventory can be received and processed quickly, businesses gain faster access to sellable products. This helps reduce lead times, replenish inventory sooner, and respond more effectively to changes in customer demand. Port-adjacent warehouses also provide flexibility during peak shipping seasons by allowing businesses to move inventory efficiently through receiving, storage, and fulfillment operations. Which Businesses Benefit Most from Port Warehousing? While nearly any importer can benefit from a warehouse near a port, certain industries often see the greatest value. Businesses that frequently import consumer packaged goods, apparel, footwear, food and beverage products, health and beauty items, consumer electronics, or other high-volume products often rely on strategically located warehouses to improve inventory flow and reduce transportation costs. Companies with omnichannel distribution networks also benefit by positioning imported inventory for both retail replenishment and direct-to-consumer fulfillment. How Can a 3PL Maximize the Benefits of a Port Warehouse? A warehouse location is only one part of an efficient supply chain. The expertise and technology behind the operation are equally important. An experienced third-party logistics (3PL) provider can manage receiving, inventory storage, order fulfillment, transportation, and value-added services from a single facility. This helps businesses reduce operational complexity while maintaining visibility throughout the supply chain. Barrett Distribution operates a food-grade warehouse in Curtis Bay, Maryland, located within 10 miles of the Port of Baltimore. The facility is designed to support high-volume retail distribution, omnichannel logistics, ecommerce fulfillment, and value-added warehousing services. Barrett also provides advanced warehouse technology, transportation management, and real-time inventory visibility to help customers manage imported inventory efficiently. Is a Warehouse Near a Port Right for Your Business? If your business imports products internationally, stores large volumes of inventory, or serves customers across multiple sales channels, warehousing near a port may be a strategic advantage. A port-adjacent warehouse can reduce transportation costs, improve inventory availability, and create a faster, more resilient supply chain. When combined with an experienced logistics partner, it can also simplify inbound operations while supporting efficient fulfillment to retailers, distributors, and consumers. As global supply chains continue to evolve, businesses that strategically position inventory closer to major ports are often better equipped to respond to changing demand and maintain high service levels. Frequently Asked Questions Why do companies choose a warehouse near a port? Companies choose warehouses near ports to reduce transportation costs, accelerate inventory movement, simplify imports, and improve supply chain efficiency. How does a warehouse near a port reduce shipping costs? By minimizing the distance imported goods travel after arriving at a port, businesses can lower inland transportation and handling costs while improving inventory flow. What industries benefit most from port warehousing? Industries including consumer packaged goods (CPG), apparel, food and beverage, health and beauty, consumer electronics, and ecommerce often benefit from warehousing near major ports because they rely on frequent imports and efficient inventory distribution. Does Barrett Distribution offer warehousing near a port? Yes. Barrett Distribution operates a warehouse in Curtis Bay, Maryland, located within 10 miles of the Port of Baltimore. The facility supports omnichannel fulfillment, retail distribution, ecommerce fulfillment, and food-grade warehousing with advanced inventory management capabilities.

Best Warehouse Location for Fast Shipping (2026)

By Faith Artieda • August 21, 2026

The best warehouse location for fast shipping is one that places inventory close to your customers while providing access to major transportation networks, parcel carriers, and ports. Choosing the right location can reduce shipping costs, shorten delivery times, and improve customer satisfaction. Key Takeaways Warehouse location directly impacts shipping speed and costs. Proximity to customers and transportation hubs leads to faster fulfillment. A strategic 3PL can help determine the best warehouse network for your business. Why Is Warehouse Location Important for Fast Shipping? Warehouse location influences nearly every aspect of your supply chain. The farther a package has to travel, the longer it typically takes to reach the customer and the more expensive it becomes to ship. Positioning inventory closer to your customer base helps reduce transit times while improving overall shipping efficiency. For businesses that serve customers across the United States, selecting a warehouse with access to major highways, parcel carrier hubs, airports, and ports creates additional opportunities to move products quickly and reliably. Where Should a Warehouse Be Located? There isn't a single "best" location for every business. The ideal warehouse depends on where your customers are located, how your products move through the supply chain, and whether you serve ecommerce, retail, or wholesale channels. Companies importing products often benefit from warehouses located near major ports, allowing inventory to move into storage more quickly and reducing inland transportation costs. Businesses with nationwide customers may benefit from multiple fulfillment centers positioned in different regions to shorten shipping distances. Is One Warehouse Enough? For growing companies, one strategically located warehouse is often the most cost-effective solution. It simplifies inventory management while keeping operating costs lower. As order volume increases and customers become more geographically dispersed, multiple warehouse locations can improve delivery speed and reduce shipping expenses by placing inventory closer to end customers. How Does a 3PL Help Optimize Warehouse Location? A third-party logistics provider analyzes customer locations, shipping patterns, transportation costs, and future growth plans to recommend the most effective warehouse strategy. Rather than selecting a location based solely on geography, a 3PL helps businesses build a fulfillment network that balances speed, cost, and scalability. Frequently Asked Questions What is the best warehouse location for fast shipping? The best warehouse location is one that minimizes the distance between your inventory and your customers while providing access to reliable transportation infrastructure and carrier networks. Does warehouse location affect shipping costs? Yes. Shorter shipping distances generally reduce transportation costs while improving delivery speed. Should my warehouse be near a port? If your products are imported, locating inventory near a major port can reduce lead times and lower inbound transportation costs.

Overflow Warehousing Explained: When and Why Your Business Needs It

By Faith Artieda • August 20, 2026

For many businesses, warehouse space is never a concern—until it suddenly is. Whether it's preparing for peak season, managing a surge in customer demand, or receiving an unexpected shipment from a supplier, running out of warehouse capacity can create operational challenges that impact every part of the supply chain. Rather than scrambling to make room or delaying inventory deliveries, many companies turn to overflow warehousing. This flexible storage solution helps businesses manage fluctuations in inventory without the expense of expanding or leasing a permanent facility. Understanding how overflow warehousing works and when to use it can help businesses maintain efficient operations while continuing to meet customer expectations. What Is Overflow Warehousing? Overflow warehousing is the temporary storage of excess inventory at an off-site warehouse when your primary facility reaches capacity. Instead of overcrowding your existing warehouse or slowing down operations, inventory is stored at a secondary location until it's needed. These facilities are often operated by third-party logistics providers, giving businesses access to additional warehouse space without the long-term commitment of building or leasing another distribution center. Overflow warehousing is designed to provide flexibility. Whether you need extra storage for a few weeks or several months, it allows your business to adapt to changing inventory levels without disrupting daily operations. Why Businesses Use Overflow Warehousing Inventory levels don't stay the same throughout the year. Seasonal demand, promotional events, supplier schedules, and business growth can all create temporary spikes that exceed available warehouse space. Retailers often increase inventory well before the holiday shopping season to ensure products are available when demand rises. Manufacturers may receive large production runs that need to be stored before distribution. Importers frequently experience inventory surges when overseas shipments arrive all at once. Without additional storage, these situations can lead to crowded aisles, inefficient picking paths, delayed receiving, and reduced productivity throughout the warehouse. Overflow warehousing provides businesses with the flexibility to absorb these temporary increases while keeping their primary operations organized and efficient. Signs You May Need Overflow Storage Many businesses don't realize they've outgrown their warehouse until operational issues begin affecting customer service. If warehouse aisles are becoming congested, inventory is being stored in temporary locations, or employees are spending more time moving products than fulfilling orders, it may be time to consider overflow warehousing. Other indicators include preparing for peak season, launching new products, increasing safety stock, onboarding new customers, or experiencing rapid business growth. When warehouse utilization consistently approaches capacity, even small increases in inventory can create significant operational bottlenecks. Securing overflow storage before space becomes critical helps avoid unnecessary disruptions. The Benefits of Overflow Warehousing One of the biggest advantages of overflow warehousing is flexibility. Businesses can quickly increase storage capacity without investing in additional buildings, equipment, or permanent labor. Overflow facilities also help improve warehouse efficiency. By relocating slower-moving or reserve inventory to a secondary location, the primary warehouse can focus on faster-moving products and daily order fulfillment. This often results in improved organization, faster picking times, and fewer errors during receiving and shipping. Another important benefit is cost control. Expanding or purchasing warehouse space requires significant capital investment and long-term planning. Overflow warehousing allows businesses to pay only for the storage space they need, making it a more cost-effective solution for temporary inventory increases. Working with a third-party logistics provider can also provide access to experienced warehouse teams, inventory management technology, and transportation services, helping businesses scale operations without adding internal resources. Overflow Warehousing During Peak Season Peak season is one of the most common reasons businesses utilize overflow warehousing. As inventory levels increase in preparation for holiday sales and seasonal demand, warehouse capacity can disappear quickly. Bringing inventory into storage early helps ensure products are available when customers begin placing orders, but it also requires additional space. Overflow warehousing gives businesses the ability to stage inventory ahead of peak season while keeping their primary fulfillment operations running efficiently. Rather than overcrowding picking areas or limiting receiving capacity, inventory can be strategically stored and replenished as demand increases throughout the season. This approach helps improve productivity while reducing the risk of shipping delays during the busiest months of the year. Choosing the Right Overflow Warehousing Partner Not all overflow storage solutions are the same. Businesses should look for a logistics partner that offers more than just available warehouse space. Inventory visibility is critical. A reliable warehouse management system should allow businesses to track inventory accurately across multiple locations and provide real-time updates when products are received, stored, or shipped. Location also matters. Choosing an overflow warehouse near manufacturing facilities, ports, transportation hubs, or your primary distribution center can reduce transportation costs and improve delivery times. Operational experience is equally important. A warehouse partner should have established processes for receiving, storing, managing, and distributing inventory while maintaining high standards for accuracy and service. Many companies choose to work with a 3PL because they can provide integrated warehousing, transportation, and fulfillment services under one provider, creating a more streamlined supply chain. Is Overflow Warehousing Right for Your Business? Overflow warehousing isn't only for large retailers or global manufacturers. Businesses of all sizes can benefit from additional warehouse capacity when inventory levels temporarily exceed available space. If your company experiences seasonal demand, rapid growth, supplier fluctuations, or large inventory purchases, overflow warehousing can provide the flexibility needed to maintain efficient operations without committing to permanent expansion. By planning ahead and securing additional storage before capacity becomes an issue, businesses can reduce operational disruptions, improve warehouse productivity, and continue delivering the reliable service customers expect. Preparing for Growth with Flexible Warehousing Today's supply chains require businesses to be more adaptable than ever. Customer demand can change quickly, inventory needs fluctuate, and warehouse space is a valuable resource that should be used efficiently. Overflow warehousing provides a practical solution for companies that need additional capacity without the cost and complexity of expanding their facilities. Whether you're preparing for peak season, managing unexpected inventory increases, or planning for future growth, having access to flexible warehouse space allows your business to respond with confidence. When integrated into a broader logistics strategy, overflow warehousing becomes more than just extra storage—it becomes a tool for improving efficiency, protecting customer service, and supporting long-term business growth.