One of the greatest powers Costco or IKEA has is the vast amount of real estate for warehousing. Not only does it cut costs but it also reduces delivery times by having a central hub for all shipments to be made from.
However, when showroom space is more important than storage space, you need to either setup your own warehousing in the city or use a logistic company’s storage room to free up space.
Some popular companies in Vancouver are Delgate, 18Wheels, Comet, and Pacific Coast which all provide warehousing services. Yet, most hire 3rd party logistic companies to perform last mile deliveries as their own fleets cannot accommodate all their clients on their own. The reason for this is simple, the cost of managing multiple fleets can get taxing and adds an extra layer of complexity for 1 logistic company to handle. If they’re not at the size and scale of something like Fedex, UPS, or Canada Post, economically it would put the company in the red, and it’s very hard to estimate the scope of a company’s growth.
Even though it increases the cost of the bottomline, logistic companies are willing to take the hit to guarantee that they can accommodate their clients. This extra cost is paid by you should you do business with them, but ultimately is still a cheaper option than a small or medium business to create their own internal logistics company.
The One Exception
Delgate the one exception, is a Vancouver based company that not only provides warehousing services on par with others in the city, but have also partnered up with “it’s here” – a delivery technology similar to Uber or Lyft. With this application they are able to manage their fleets and expand without any extra management costs. This is a similar technology to how Amazon manages their delivery network. By means of automation, they’re easily able to perform full EDI integrated fulfillment which is optimal for appliance, furniture, or large pallet deliveries.
From small courier drivers to 5 ton trucks, their fleet can fulfill final mile deliveries for documents, products, furniture, or pallets. Efficiency allows them to reduce costs in receiving and delivering products, granting management more time to focus on warehousing. Additional services like palletizing, picking, co-packing, and labeling are thus at a cheaper cost than their competitors, while not reducing the quality of their service.
With these reduced costs, Delgate is confident in their service that you will not want to switch over to another company. A synergy between a large warehousing company and a logistics company that can do everything from white glove services, same day deliveries, customer communication/notification and more.