Contract warehousing allows you, the owner, to absorb some of the cost risks involved with goods storage by committing to pay fees whether or not the space is utilized. You share the risks with the owner of the warehouse company, and in turn your costs will be less than public warehousing.
Contract warehousing can give you many advantages including an increase in your supply-chain performance, as well as lower distribution costs. You can also inquire if your contract warehousing solutions company offers any of the following additional services: transloading, inventory management, cross docking, labeling, inventory control, palletizing, trucking and drayage, packaging or quality control.
To find the right contract warehouse for you:
1. Determine where you want your warehousing contracts services to be located and what size location you'll need.
2. Begin your search online to find a suitable company in that area.
3. Either visit that location before committing to the facilities, or seek out additional reference information from current clients of the facility.
Look through contract warehouse search enginesSkip Google and Yahoo. Start with industry specific sites for your contract warehousing needs.
Find your domestic contract warehouse or international warehouse onlineThe web is the best place to quickly and easily locate contract warehousing services.
Use your contract warehouse to create a distribution centerDon't just store your goods. Create a whole other level of supply chain operations from your business. Utilize your new contract warehousing location as a new distribution center base of operations.
Split the cost of your domestic contract warehouseSharing contract warehouse space helps you commit only to the space you need, especially for businesses that are seasonally based.
- Be sure and thoroughly look through your warehousing contracts. Make sure that the terms of the agreement are suitable to both parties, and that any outside responsibilities outside of them just storing your product are spelled out clearly.