Today’s supply chain is challenging, to say the least. Any business that moves product from a warehouse to a customer can expect obstacles in between points A and B. Assuming product arrives to the warehouse on time as planned, storage could become a sticking point. You need — but don’t necessarily have room — to stay stocked. Meanwhile, warehouse space is costly, leases are inflexible and staffing is another story of its own.
A storage yard can alleviate these issues and, in the process, position your business for success and growth. Strategically located storage yards paired with dedicated drop yard services can add several new dimensions to your warehousing operations, including:
1. Cost Efficiency
William Donahoe, director of operations at office furniture installer Environments Plus, has been coming to Mckinney Trailer Rentals for trailers, trucks and drivers for nearly a decade. With Environments Plus experiencing a pandemic boom in business and the company’s new, expanded warehouse bursting at the seams, Donahoe turned to his trusted Mckinney account manager, Cabot Ferrill.
Environments Plus had occasionally tapped into Mckinney’s drop yard services for an outlet in a pinch but had not envisioned a storage yard as an ongoing hub. Ferrill explained the breadth of Mckinney’s drop yard operations, and soon after, Environments Plus began designating upward of 25 trailer loads of product for yard storage in any given month. Leasing another warehouse wasn’t a realistic option, nor did it need to be with access to a storage yard. While meeting the urgency, drop yard services also allowed for cost efficiency.
“Instead of having to go out and lease a building for five years, you can operate through our storage yards,” Ferrill said.
Donahoe added, “If I have 200 pallet positions arriving at a full warehouse, I can rent trailers from Mckinney and put that entire shipment in one of their yards without the exorbitant cost and undertaking of leasing a new warehouse. And when that shipment goes out, I don’t have to keep paying rent for it.”
Donahoe likened storage yards to a secret weapon for business. Quite simply, they enable scalability. When product is overflowing in the warehouse, a storage yard is readily available. When business slows down, the overhead costs of warehousing are lower and therefore not as much of a sore thumb. And when it picks back up, you’re ready to make things happen for your customers. “The ebb and flow of product is always a challenge, particularly in our business, where we’re dealing with large orders for large companies to furnish their workplaces,” he said. “Drop yard services are really a brilliant offering from Mckinney. They make logistics less of a moving target.”
There are immediate ways to manage excess product on-site, but they’re not secure nor sustainable. Companies might resort to tarping pallets in the parking lot or clearing space in corporate headquarters. A storage yard stands as an expansion of your warehouse, while drop yard services act as an extension of your team. It’s important, however, to choose a reputable drop yard operator like Mckinney that ensures security. Donahoe confirmed that Environments Plus has never had a security issue or concern at Mckinney’s facilities.
Environments Plus often has sizable shipments that will sit in their warehouse for an extended period. For example, if desks arrive, the customer’s full order may not be ready to be shipped to the installation site until the legs arrive too. Construction delays and installation scheduling come into play as well. In these instances, and especially those exasperated by pandemic supply chain disruptions, Donahoe values what he calls the ability to move laterally, meaning he and his team can quickly react and find space at a storage yard.
Ferrill noted that Environments Plus makes great use of Mckinney’s many services at once, including trailer rentals, pick-up, delivery and repositioning, all in tune with drop yard services. “It’s not just a transaction,” Ferrill said. “They trust us to be a key link in their supply chain.”
A storage yard is only as reliable as the people running it. At Mckinney, our drop yard services are constantly in motion with the goal of making things as easy as possible for our customers. “Mckinney’s customer service is absolutely top-notch,” Donahoe said, offering an example of a typical phone exchange:
Environments Plus: “Hi, do you have trailers available?”
Mckinney: “Yes, we do. How many would you like?”
Environments Plus: “One please.”
Mckinney: “You’ve got it, and for how long?”
Environments Plus: “One day please.”
Mckinney: “Confirmed, the trailer will arrive at your site tomorrow.”
Donahoe continued, “And just like that, the trailer shows up, then it’s gone, and the process repeats as needed. All the while, none of that excess product is taking up warehouse space.”
Mckinney’s storage yards grew into an entire service line during the pandemic and one that helps our company as well by subsidizing our rent. It’s a win-win that we’re proud to offer and committed to delivering. Environments Plus is just one of the many companies using any number of our 16 drop yard locations across the country. Learn more about how Mckinney storage yards and drop yard services can help position your business for success.