Oakland, California, 06.27.11 – Aspen Logistics, Inc.’s sees a recent increase in Northern California business as a sign of an approaching economic recovery and a change to the supply chain model towards outsourcing. The logistics company’s business in Northern California has been driven by a series of contract wins. Two of these contracts were for substantial business with a large confectioner and a medical manufacturer.
The logistics company certainly feels that these are indicators of growth in the market and a trend towards revaluating logistics costs. Aspen, a third-party logistics company (3PL) handles the supply chains for a number of major brands in the retail industries. The company created a Northern California campus in the Oakland area a little less then a year ago. After a long lull in customer demand, Aspen has begun to see companies actively searching for outsourcing solutions in the supply chain.
The new influx of customers is a sign that companies are trying to adapt to the marketplace and position themselves ahead of increasing demand. Until recently, potential clients were merely conducting exploratory exercises – costing-out the potential opportunities without having any defined needs to move forward. But, in today’s market, fixed assets have become risky ventures. Real estate and overhead costs are now ominous burdens that are less than predictable. Manufacturing companies are reluctant to have any undue risks on their books, so they are moving towards 3PL solutions. This allows them the means to still control a robust distribution process without taking on its liabilities. By outsourcing, companies are able to focus on larger efforts in improving manufacturing, quality, and R&D. 3PLs like Aspen have a great opportunity today to capitalize on a renewed effort to outsource.
The Northern California market was stagnating until recently, even with its access to the vast production of food goods and produce. A year ago, Aspen found an opportunity to move their footprint into the market, but soon after experienced a relatively low demand. Now that there is some movement driving interest, the 3PL is ready to make a wider commitment into the market.
For additional information please contact Chris Ticknor Aspen’s Director of Marketing, or call Aspen (800) 741-7360.
Aspen Logistics Inc. is a top 100 third party logistics firm who has been in business for over 30 years and operates approximately 3 million square feet of modern refrigerated and ambient warehouse facilities along with their own fleet of trucks. Aspen specializes in a variety of value-added services, including co-packing, pick pack, just-in-time inventory management and time sensitive custom deliveries. Aspen is a specialist in the retail and healthcare supply chain and understanding the details involved with shipping to major retailers and grocery chains has been a key to its successes.