Keeping Your Belongings in Storage

Posted on: 12 May 2021

Storage is a significant concern for most businesses today. It is especially so since the costs of renting or leasing commercial property have been rising over the years. Third-party logistics (3PL) companies are an instant solution for businesses that require extra storage space to store inventory and raw materials. They offer warehouses where you can keep your products for short or long periods. Below are some various considerations you should make when hiring a 3PL company to offer warehousing services. 

Reputation Of The 3PL

Your immediate concern would be the quality of services that the 3PL offers. Therefore, contact some of its clients and inquire if they are satisfied with the company's services. You should also assess the 3PL's business policies. Remember, once you sign the engagement contract, the 3PL becomes your business partner. 3PL's that have solid relationships with the local communities, numerous awards and recognitions, will instantly enhance your business image. 

Capabilities And Specialisation

Can the 3PL solve your storage needs? Inform the company about the volume of goods that your business handles and ask them to explain how they will solve your storage needs. Typically, the 3PL should have sufficient space in their warehouses. Logistics and storage go hand in hand. As such, the warehouses should be in strategic locations. Examine the flexibility of the 3PL. For instance, what would happen if you receive an urgent order and need to double your storage space overnight? An experienced 3PL can handle such situations with ease. 

Inquire about the 3PL's specialisation. For example, if you are in the food business, you would want a 3PL to provide cold warehouses. Additionally, the 3PL should understand the life cycle of your product, the required temperature ranges and how to handle the product. 

Extra Services

Other than storage, what other services can the 3PL provide? For example, some companies will repackage your goods at their warehouse. Others have advanced order fulfilment systems that can supplement your current distribution system. In some cases, you would need a 3PL that can offer trans-loading services. It allows you to transfer goods from one transportation mode to the other. 

Terms Of Contract

The terms of engagement should be fair to both parties. For example, the 3PL pricing should be reasonable to ensure you do not run out of working capital. Additionally, the 3PL should be ready to review its pricing to reflect the current state of the market. You should also inquire about the 3PL's insurance arrangements. 

When hiring a 3PL to provide warehousing services, assess the company's reputation, capabilities, specialisation, services and terms of contract. Contact a 3PL warehousing company for more information.