Handling a large-scale business entails many functions relating to storing and management of inventory. Since these processes are rather time-consuming, most companies outsource these tasks to a firm that specialises in providing logistical solutions. These are also known as contract warehousing agencies that offer contemporary solutions for storing, monitoring, dispatching and keeping a record of goods and products.
In areas such as Adelaide, several companies offer this service as a core product. These go a long way in reducing risks relating to storage and shipment. Till some time ago, the 3PL model was in existence. However, companies soon realised that they need a deeper technological and analytical edge when it comes to managing logistics, which led to the emergence of the 4PL (fourth party logistics) model. This model has provided better cost benefits to companies while making their processes far more comprehensive.
So what exactly is a contract warehouse? By definition, this facility is a warehouse that takes care of business aspects relating to receiving goods, storing them, taking dispatch orders, shipping products, and keeping a stock of inventory. Warehousing and distribution of this type are in high demand as not all companies have large facilities where they can store their goods. It doesn’t end at having a storage facility. One also needs to invest in trained manpower and allied technologies.
When a company enlists such services like a contract warehouse, they need to sign a contract for a fixed period that is predetermined. This period is usually for a certain number of years. The fees are usually decided based on the services availed by the company. Most contract warehousing companies offer standard services and an exclusive range of customised services over and above that.
It is important to select a warehousing firm that has enough experience because warehousing and distribution can entail many risks and obstacles. It is critical to outsource the services of a company that has an earthquake-proof facility, clean and hygienic storage rooms, constant surveillance of the premises and related software systems to keep track of the inventory.
Additionally, some companies will also help you with customs clearance and other such obstacles if required. Today, partnering with a 4PL firm is seen more as a service and not a commodity. That’s because companies need to partner with a company that can offer tailor-made solutions which cannot always be provided by a 3PL logistics firm.
So, when you choose a contract warehousing company, it is important to select one that is willing to share the risks with you. Doing this is the best way to ensure that the services being offered are in your best interest.
If you are in the market for a warehousing company, contact Cochranes warehousing experts. They have been in this industry for years now and have the experience needed to handle all your storage needs. Their services are very reliable and affordable. With them, your company will succeed in all its business dealings.