ortaklarotel.com :Selecting a 3rd-party logistics provider for your company is a very important decision for your company for two major reasons: first, entrusting your valuable goods (and those of your prospective clients) in the hands of a 3rd-party warehouse provider means entrusting those goods to an organization whose reputation, track record and ability to deliver are not known for nothing. Second, by handing over such a large investment in your inventory, or goods to a potentially shaky logistics company, you are putting at risk the company’s goodwill. Many third-party warehouse providers have had their fair share of problems – from malfunctions of materials, broken goods, over-charging or other logistical failures. As with any investment, you must carefully weigh the risks and rewards. You may be left holding the bag for poor logistics management or poor business practices on the part of the 3rd-party logistics provider. Or, you may be the next victim.
In determining which warehouse services provider to contract with, it’s necessary to take into consideration your current needs, your long-term plans for growth and the stability of the chosen 3rd-party logistics provider. Ask yourself: How will you store, organize and transport your inventory? What level of inventory loss or damage do you expect to incur over the next few years? How will you minimize risk to all of these areas?
The first question you should ask of your chosen warehouse provider is whether they offer a comprehensive insurance package. Most importantly, you should ask for liability insurance. Whether you are purchasing a parcel courier service, an on-call delivery service or a drop-shipper’s service, you need to purchase adequate insurance to cover your company and your employees in case something untoward happens while transporting your goods to your customer’s door. These are just a few examples of the types of situations that could create a problem for warehousing companies. Depending on the type of goods that you’re currently delivering, you may need even more than just insurance protection; for instance, if you’re sending hazardous materials or if your employee is working under extreme physical stress or if they have any knowledge of dangerous objects that are in the area where your goods are stored.
In addition to finding the right insurance policy, you’ll also want to find a trustworthy warehouse provider. It’s easy to sign a short-term rental agreement with an individual seller or to select a third-party logistics provider based on reputation. However, finding a reliable, established company that can meet your long-term needs isn’t as easy. You’ll need to research companies within your industry to learn what their experience has been and what their track record says.
A warehouse provider with a strong reputation in the industry is one of the best ways to ensure that you meet your needs. This is why it’s important to compare rates and warehouse availability from different warehouse facilities. To maximize your profits and reduce waste, you’ll want to minimize the number of trips that your supply chain takes. One way to do this is to contract with a logistics management provider to provide a logistics consultant to manage the entire supply chain from start to finish. If there’s a gap in your warehouse capacity, a logistics consultant can help you assess what additional capacity you’ll need to meet your goals.
When shopping around for a warehouse provider, be sure to choose one that has experience in your industry. Ideally, a company that has handled similar supply chains in the past is someone you can easily trust. By knowing that your service provider knows the ins and outs of your industry, you can also be assured that your company will be able to continue to move through this process smoothly.
Depending on how you use your warehouse, a good logistics provider can help you save both time and money. For example, if you use your facility for inventory control, warehousing, or distribution, you may have a close relationship with a company that warehouses your products. In these cases, a third party warehouse provider may be your best choice. Because these companies handle everything from packing and paperwork to shipping, you can focus on managing your production process while your provider handles the logistics of delivering your goods.
Warehousing companies don’t always provide the goods directly to your customers. Some will have connections with distributors and manufacturers, which mean that they can ship to your customers and deliver directly to their doors. If you work with a third-party logistics company, however, you’ll still need to buy your own packing supplies and legal liability insurance. You’ll want to ensure that your warehousing company is adequately insured against damage, loss, and the unexpected. By choosing a warehousing company with an established record of quality service, you can rest assured that your business will run efficiently and legally. https://www.youtube.com/embed/rPqxu8YHRCU
