How To Choose A 3PL Logistics Warehousing Company To Offer Storage Services
Logistics is one of the challenges experienced by small businesses. More often than not, they do not have the resources and capital investment required to secure large storage spaces and ensure the distribution of their goods to all parts of the country. This is where third-party logistics companies come in. They manage the logistical aspect of operating a small business, thus allowing the owner to concentrate on producing quality products.
Storage is a critical aspect of the logistical function. As a small business, you could be in dire need of storage space as opposed to transport. So, how do you choose a 3PL to provide warehousing services? Below is a comprehensive guide.
Assess The Company's Specialisation
Small businesses have unique business needs. For example, they do not require a lot of storage space. Additionally, they may not require any storage space during the low season. As such, you should consider working with a company that understands your business needs. Conduct some background research to examine the 3PL's ability to deal with small and medium enterprises. Additionally, you should interview some of their clients to know how they rate the 3PL's services.
You will also need to assess the company licencing. Ideally, the company should have a valid operating licence to provide 3PL services in your state. It guarantees that the company will abide by the law.
Check The Warehouse's Features
Below are some things to look out for in a 3PL warehouse:
- The warehouse should be strategically located within your various distribution routes. It must be conveniently located in that you can easily access the warehouse.
- Check the products stored in the warehouse. For example, chemicals could contaminate your food products.
- What services does the warehouse offer? Modern warehouses offer product repackaging and labelling, cross-docking, and inventory management.
- Assess the efficiency of the warehouse. State-of-the-art warehousing software and experienced staff will ensure you have an easy time delivering and picking products from the warehouse.
Assess The Terms Of The Contract
As a rule of thumb, the company should have reasonable terms of service. For example, they should agree to adjust the hiring contract to suit your needs. For instance, they should adjust the standard pricing to suit your demand and supply curves. Besides, the company should allow you to change the warehouses to suit your business needs. The company should insure your items to ensure you do not suffer losses in case of an accident.
When hiring a 3PL logistics warehousing service, assess the company specialisation, check the warehouse features and assess the terms of the contract.