08 25 blog hero

3 Reasons Why Choosing a Midwest Fulfillment Service is Smart for Business

Ah, the Midwest.This region not only offers scenic beauty and a relaxed lifestyle, but it’s also becoming a hub for Midwest fulfillment services. The Midwest is considered one of four census regions in the United States and is home to almost 69 million people (21% of the US population). With 12 pivotal states forming its landscape, the region presents an ideal location for businesses looking for efficient logistics solutions.

The Midwest is home to esteemed universities churning out top talent and pivotal industries like auto, aviation, and manufacturing providing jobs – both of which help drive its economy. According to Rahul Varshneya, writing for Inc. Magazine, even millennials are increasingly finding the Midwest a great place to settle down and raise a family. They are now the largest generation and are expected to make up to 75% of the workforce by 2030.

The Midwest is also attractive from a logistics perspective. Distribution and order fulfillment centers are booming in this area. These companies are finding that they have advantages over those located on the coasts. Let’s look at the specific advantages of Midwest logistics and how that can help companies better meet their customer’s needs.

Reduction in Transportation Costs

One of the biggest expenses for logistics companies is transportation. There are several factors at work. Inflation is running rampant and fuel costs are up. It is costing more to buy and maintain trucks. And with the driver shortage, driver pay has increased substantially, despite a recent increase in capacity.

A Midwest fulfillment center has the potential to ease some of this burden. A centrally located facility can decrease the distance to your customer base. Fewer miles traveled mean less fuel, less wear and tear on vehicles, and reduced driver time. Midwest fulfillment services can also benefit from the region’s robust transportation infrastructure, including major airports, ports along rivers, railroads, and interstate highways.

Located in Ohio, Aero Fulfillment Services is a third-party logistics (3PL) provider that is close to many of your customers. Because of Aero’s large volumes, they have unique arrangements with their shipping partners, enabling them to pass on substantial savings to you. Reduction in Warehouse and Fulfillment Costs

The cost of labor varies widely across the country. Businesses can garner significant advantages from Midwest fulfillment services. Whether it’s cost-effective labor rates, reduced overhead costs, or business-friendly legislation, the Midwest stands out. According to the US Bureau of Labor Statistics, employee compensation ranges from a high of $41.44 per hour in the West to a low of $33.41 in the South. The Midwest comes in at $35.60 and the Northeast at $41.35. This includes wages, salaries, and benefits. It’s easy to see that as the number of employees in a company increases, there can be substantial labor savings in the Midwest.

Overhead costs are another factor to consider. They are incurred during the regular course of running a business, regardless of how much product is sold. Rental fees, utilities, insurance, equipment, and office supplies are cheaper in the Midwest. Real estate and building costs are also lower. Whether a distribution center is looking to rent space, build from scratch, or add on, a central location makes good sense.

Business-friendly legislation makes it attractive to be based in the Midwest. Many areas offer incentives and tax breaks for those looking to base their operations in the center of the country.

Aero can help you reduce warehouse and fulfillment costs. They can pass their savings from a Midwest location on to you. As an additional benefit, centralizing inventory can eliminate the complexities and additional costs of a multi-facility set-up. Call Aero today to learn about their full line of services.

Faster Deliveries

The ever-growing “Amazon Effect” has recalibrated customer expectations towards faster deliveries. To cater to this demand, businesses are realizing the necessity of strategically located warehousing. This is where Midwest fulfillment services, with their central locations, offer an edge in delivery efficiency. A Midwest warehouse will often be in the center of the customer base, making deliveries more effective and efficient.

60% of the US population is within a one-day drive of Aero’s warehouses.  Their location is served by several major transportation corridors that help reduce lead times and increase efficiency. Additionally, their proximity to transportation corridors helps reduce lead times and increase efficiency. Their dedicated freight management team has experience with both inbound and outbound operations, small and large loads.

Aero Fulfillment Services, a stalwart in the Midwest fulfillment services landscape since 1986, harnesses advanced technology to deliver tailored solutions for their customers. Aero provides flexible, innovative, and transparent solutions to meet the unique needs of every client.

Consider Aero’s two Midwest fulfillment centers for your fulfillment needs. Their quote will factor in the current volatility of the supply chain and their implementation process will make it easy to switch. Take this 1-minute survey to get started today!