Successful Import Logistics for the Ports of Los Angeles and Long Beach
At the Ports of Los Angeles and Long Beach, trade never stops.
In August 2024 alone, nearly 1.9 million shipping containers passed through the two ports – and the amount continues to rise. But the arrival of imported goods at either port is only the beginning of their journey. In fact, the next steps in the shipping process are arguably the most complicated.
So, what does it take to master import logistics in southern California? Let’s dive into it.
From the Ports to Your Facilities
Companies importing goods through the Ports of Los Angeles and Long Beach have two options once their shipments arrive: Move the goods directly to their facilities via truck or store them in a nearby, third-party warehouse until they are needed. Let’s walk through the advantages and disadvantages of each import logistics strategy.
Shipping Directly to Your Facilities
Some companies choose to handle shipping directly from the Ports of Los Angeles or Long Beach on their own. And there’s some merit to this approach.
When you choose to partner with a third-party warehousing provider, you are necessarily giving up control over a component of your supply chain. While there are many reputable vendors in this space, the managers and employees of these warehouses are not directly employed by the company. For companies that consider import logistics a competitive advantage, the inability to make personnel decisions and establish processes at the warehouses could be a dealbreaker.
But this arrangement can prove to be too costly for many businesses. It requires either purchasing existing warehousing facilities or purchasing expensive land in Los Angeles County to build new ones. From there, companies need to pay individual employees along with other facility costs, such as utilities and maintenance. And this doesn’t even factor in transportation costs.
Fortunately, companies with limited resources have alternative import logistics solutions available to them.
Partnering with a Third-Party Logistics Company
3PL providers offer companies the cost-effective support they need to implement and manage a successful logistics strategy.
It’s simple. After shipments arrive at either the Port of Los Angeles or Long Beach, a truck from a third-party transportation company or the company’s own fleet picks it up and then delivers it to a nearby warehousing facility. One of several things can happen next in the import logistics process.
- If there isn’t an urgent need for the goods, the company can store them at the warehouse until a customer places an order, or until the company needs to use the item in question.
- After the shipment arrives at the warehouse facility, the staff can immediately move it from the inbound truck to an outbound truck without breaking down the pallet. This process is typically called cross-docking.
- Finally, the warehousing provider can transfer the goods from a truck to a different form of transportation, such as a train, in a process called transloading.
Outsourcing import logistics to a 3PL provider not only reduces storage and transportation costs, but also potentially reduces late deliveries and errors. Managers of warehouses located near the Ports of Los Angeles and Long Beach have a deep understanding of how these ports operate, local roadways, and sources of delays.
Of course, not all 3PL providers can deliver successful logistics solutions. Here are a few questions worth asking when you’re evaluating 3PL vendors.
- Do You Offer Inventory Tracking?
If your company is like most others, you’re frequently importing goods into the country. Import logistics can quickly become challenging with keeping track of how much of your inventory is stored within your 3PL provider’s warehouse facilities.
Luckily, many top 3PL companies have made inventory management easy for their clients. Modern inventory management software supports successful logistics by allowing clients access to real-time data about their inventory levels and other key metrics such as order processing time, shipment status, and stock levels.
- Are Your Service Contracts Month-to-Month?
The needs of a business can change quickly. One month, your company could need a significant amount of storage space, and the next month you might not need nearly as much.
Some 3PL operators lock their clients into long-term deals that fail to account for changing business conditions that affect import logistics. You can avoid this by seeking out vendors that offer month-to-month contracts.
- Can I Talk With One of Your Current Clients?
Many 3PL operators claim to provide superior customer service. But in some cases, their customers don’t necessarily agree.
Rather than taking their claims at face value, ask to speak with one of their customers. They can give you insight into how quickly their issues have been addressed by the vendor.
Trust Cummins Logistics for Your Port of Los Angeles and Long Beach Shipments
For more than 40 years, Cummins Logistics has helped companies get their goods from the Ports of Los Angeles and Long Beach to their customers nationwide. Find out more about our successful logistics solutions today!