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Warehousing

How Warehousing and Distribution Works (What to Look for in a 3PL)

Steve Schlecht
Written by
Steve Schlecht
Published on
July 12, 2024
Last updated on
August 2, 2026
Table of Contents

Warehousing and distribution is the process of storing goods in a facility and then moving them efficiently to their next destination, whether that's a retail shelf, a fulfillment center, or a customer's front door. When done right, it keeps your supply chain moving without costly delays, damaged freight, or inventory chaos.

If you're running a growing business or managing a complex supply chain, you already know that finding the right logistics partner isn't just about finding empty shelf space. It's about finding a team that can store your product, manage your inventory, and ship it out fast, accurately, and at a cost that makes sense for your operation.

We've seen what separates high-performing supply chains from struggling ones, and it almost always comes down to the quality of the warehousing and distribution setup behind them.

This article breaks down exactly how the process works, what to look for when evaluating a third-party logistics (3PL) provider, and how companies like Buske Logistics deliver this at scale across the U.S. and Canada.

What Warehousing and Distribution Actually Involves

Most people assume warehousing is just storing boxes in a building. In reality, it's a coordinated system involving receiving, putaway, inventory management, order picking, packing, and outbound shipping, all happening simultaneously across thousands of SKUs.

Here's what a full-cycle warehousing and distribution operation typically covers:

  • Receiving: Inbound freight is unloaded, inspected, and verified against purchase orders.
  • Putaway: Goods are assigned to storage locations using a warehouse management system (WMS).
  • Inventory tracking: Real-time visibility into stock levels, locations, and movement.
  • Order picking: Items are selected based on customer orders, often using scan-based or voice-directed systems.
  • Value-added services: Kitting, labeling, repackaging, sequencing, or quality inspection before shipment.
  • Outbound shipping: Orders are packed, manifested, and handed off to carriers or fleet vehicles.

Each of these steps adds complexity. A miss at any stage, whether it's a mislabeled pallet or a missed pick, creates downstream problems that cost real money. That's why the facility layout, the technology stack, and the people running the operation matter so much.

According to CSCMP and Kearney's State of Logistics Report, U.S. business logistics costs run roughly 7.8% to 8.8% of GDP depending on the year. Recent editions put 2025 at $2.6 trillion, or 8.7% of GDP, while a newer estimate comes in at $2.4 trillion, or 7.8% of GDP. Getting your warehousing operation dialed in is one of the highest-leverage ways to protect margin.

The Importance of Logistics Warehousing and Distribution

With over 100 years of experience, Buske Logistics understands the critical role that efficient warehousing and distribution services play in supply chain success. We know firsthand that companies often face challenges related to storage, inventory management, and the timely distribution of products, making reliable logistics solutions essential for maintaining operational efficiency and meeting customer expectations.

This is where logistics warehousing and distribution step in, providing a strategic advantage by ensuring your products are stored safely, managed efficiently, and delivered on schedule.

Research shows that 79% of companies with high-performing supply chains see higher revenue growth than the industry average. Companies that optimize their supply chains have 15% lower costs, a 15% reduction in supply chain expenses, a 50% reduction in inventory holdings, and a threefold acceleration of cash-to-cash cycles (Invesp).

Effective distribution strategies infographics.

The Difference Between Storage and Strategic Distribution

There's a big difference between renting warehouse space and building a real distribution strategy. Storage is passive while distribution is active.

A strategic distribution setup means your inventory is positioned close to your customers, your orders ship faster, and your freight costs drop because you're not always shipping long distances from a single point. For companies serving both B2B and B2C channels, this layered approach is critical.

Here's how the two compare:

Factor Basic Storage Strategic Distribution
Inventory Visibility Manual or limited Real-time WMS tracking
Order Turnaround 24–72 hours Same-day or next-day
Freight Cost Control Reactive Optimized by zone
Scalability Limited Flexible, scales with demand
Value-Added Services None Kitting, labeling, sequencing
Carrier Options Single carrier Multi-carrier rate shopping


When we look at what separates high-growth brands from those stuck fighting logistics fires, it's almost always that the best performers treat distribution as a competitive advantage, not an afterthought.

Buske Logistics operates over 40 facilities and 8.5 million square feet of warehousing, packaging, and distribution space across the U.S. and Canada, with additional operations in Mexico. That kind of footprint means product can be positioned closer to end customers, which cuts transit times and shipping costs in real, measurable ways.

Why Industry Experience Changes Everything in 3PL

There's a reason enterprise shippers and Fortune 500 companies don't trust their supply chains to just any logistics provider. Experience in this industry isn't a nice-to-have, it's the difference between a partner who anticipates problems and one who creates them.

Buske Logistics has been in this business for over 100 years. A century of experience means we've built processes, relationships, and operational muscle that newer providers simply haven't had the time to develop.

We've navigated recessions, pandemic-level supply chain disruptions, automotive industry cycles, and the rapid shift to e-commerce fulfillment, and still come out on the other side with a stronger network each time. That depth of experience shows up in real ways:

  • Industry-specific protocols: Handling automotive parts, food-grade products, aerospace components, or healthcare materials all require different compliance standards. Buske serves all of these verticals.
  • Carrier relationships: Long-term carrier contracts and volume leverage translate directly to better freight rates for clients.
  • Workforce stability: A provider with deep roots in logistics attracts and retains experienced warehouse managers and operations staff.
  • Technology investment: Decades of operational data inform better WMS configurations and process improvements.

How to Evaluate a Warehousing and Distribution Partner

Not every 3PL is built the same. When we walk through the evaluation process with potential clients, we focus on a handful of criteria that separate average providers from excellent ones.

Technology and Visibility
Your 3PL should give you real-time access to your inventory data. That means a WMS with client portal access, order-level tracking, and the ability to generate reports on receiving accuracy, order fill rates, and cycle counts. If a provider can't show you your own inventory in real time, that's a red flag.

Facility Network and Location
Where are their facilities? Are they positioned near your major customer bases, your suppliers, or key transportation corridors? A single facility in the middle of nowhere won't help you serve a national customer base efficiently.

Scalability
Can they grow with you? If you run a seasonal business or you're scaling fast, your 3PL needs to flex its labor, equipment, and space without disrupting your service levels. Ask about peak-season capacity and how they handle volume spikes.

Compliance and Certifications
Depending on your industry, your provider may need food-grade certifications, ITAR compliance for defense-related products, or ISO quality standards. Buske, for example, serves aerospace and defense clients alongside automotive and food and beverage companies, and each vertical has its own compliance layer.

Track Record With Similar Clients
Ask for references from clients in your industry and at your volume level. A provider that's excellent for a small DTC brand may not have the infrastructure to support a Fortune 500 enterprise, and vice versa.

Things to Know

  • Not all 3PL providers offer the same services. Some specialize in storage only, while others offer full-cycle fulfillment including kitting, labeling, and returns processing.
  • Warehouse location matters as much as warehouse size. Proximity to your customers or key freight lanes directly impacts your delivery speed and shipping costs.
  • A WMS (warehouse management system) is non-negotiable for any serious distribution operation. If your 3PL can't provide real-time inventory visibility, it's a liability.
  • Value-added services like sequencing, kitting, and custom packaging can eliminate steps in your own manufacturing or retail process, saving labor costs downstream.
  • Contracts matter. Understand minimum volume commitments, rate escalation clauses, and exit terms before signing with any 3PL.
  • Industry-specific experience is critical. A provider who handles automotive sequencing operates very differently from one focused on e-commerce fulfillment.

Key Takeaways

  • Warehousing and distribution is a multi-step operational system that covers receiving, storage, order fulfillment, and outbound shipping.
  • Strategic distribution positions inventory closer to customers, which lowers freight costs and speeds up delivery.
  • Choosing the right 3PL partner requires evaluating technology, facility network, scalability, compliance, and proven industry experience.
  • Over 100 years of experience gives Buske Logistics a meaningful operational advantage over newer providers.
  • Buske operates 40+ facilities and 8.5 million square feet of space across the U.S., Canada, and Mexico, making it one of the largest 3PL networks in North America.
  • Logistics costs represent 8-10% of U.S. GDP. Optimizing your warehousing setup is one of the most direct ways to protect margin.

Ready to Build a Better Distribution Operation?

If you're evaluating 3PL providers for warehousing and distribution, start by requesting a facility tour and a detailed service scope from any provider on your shortlist. Ask specifically about their WMS capabilities, their location footprint relative to your customers, and references from clients in your industry.

You can also contact Buske Logistics directly to talk through your specific volume, industry requirements, and location needs. With over 100 years of experience and one of the largest 3PL facility networks in North America, Buske is built to handle complex supply chains at scale.

Frequently Asked Questions

Q: What is the difference between warehousing and distribution?

Warehousing refers to storing goods in a facility, while distribution refers to the active process of moving those goods to customers, retailers, or other destinations.
Warehousing is the physical location and infrastructure where inventory sits. Distribution is the operational process of getting that inventory where it needs to go, on time and in the right condition. Most modern 3PL providers handle both functions under one roof, which reduces handoff delays and improves overall supply chain efficiency.

Q: How do I know if I need a 3PL for my warehousing and distribution needs?

If your business is outgrowing its own storage capacity, struggling with order accuracy, or spending too much on freight, a 3PL is worth evaluating.
Signs you need a 3PL include: fulfillment errors rising, warehouse labor becoming hard to manage, shipping costs eating into margin, or your internal team spending too much time on logistics instead of core business. A good 3PL absorbs that complexity and turns it into a scalable system.

Q: What industries does Buske Logistics serve?

Buske Logistics serves industries including automotive, food and beverage, aerospace and defense, healthcare, retail, and industrial manufacturing.
Each of these verticals has different handling requirements, compliance standards, and fulfillment timelines. Buske's 100+ years of experience across all of these sectors means they've built industry-specific processes rather than using a one-size-fits-all approach.

Q: How large is Buske Logistics' facility network?

Buske operates 40+ facilities covering 8.5 million square feet of warehousing and distribution space across the U.S., Canada, and Mexico.
That footprint makes Buske one of the top 20 3PL providers in North America. The scale of the network allows clients to position inventory in multiple regions, reducing transit times and regional freight costs simultaneously.

Q: What technology does a good 3PL use for warehousing?

A top-tier 3PL uses a warehouse management system (WMS) that provides real-time inventory tracking, order-level reporting, and client portal access.
Beyond the WMS, leading providers also use barcode scanning, voice-directed picking, and carrier integration tools to automate fulfillment steps and reduce error rates. Technology is one of the clearest differentiators between average and excellent 3PL performance.

Q: What are value-added services in a distribution context?

Value-added services are additional operations performed on goods inside the warehouse, such as kitting, labeling, repackaging, sequencing, or quality inspection.
These services eliminate steps that would otherwise happen at a factory, retail location, or fulfillment center downstream. For automotive clients, for example, Buske provides sequencing services that deliver parts to the assembly line in the exact order they're needed, reducing downtime and improving line efficiency.

Q: Is it better to use one 3PL or multiple providers?

Using a single 3PL with a broad facility network is usually more efficient than splitting across multiple providers, because it simplifies inventory management and reduces coordination costs.
That said, there are scenarios where redundancy across two providers makes sense, especially for businesses with very large volumes or those operating across very different product categories. The key is making sure your primary provider has the scale, locations, and capabilities to handle the bulk of your needs without gaps in coverage.

The Bottom Line on Warehousing and Distribution

Getting this right is not a back-office problem. It's a front-line competitive advantage. The companies that invest in a capable, experienced distribution partner consistently outperform those trying to manage it in-house or through under-resourced 3PLs.

Buske Logistics has spent over 100 years building exactly the kind of infrastructure, expertise, and network that modern supply chains demand. Whether you're a Fortune 500 manufacturer or a fast-growing mid-market brand, the right 3PL partner turns warehousing and distribution from a cost center into a growth enabler.

Reach out to Buske today to see how their network can work for your business.

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About the Author

Steve Schlecht

Steve leads Marketing and Sales at Buske Logistics, a top-20 privately owned 3PL founded in 1923. He has spent over a decade helping mid-market and enterprise brands optimize their warehousing and distribution operations across automotive, food and beverage, retail, and CPG sectors.

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