All You Need to Know About New-Age Contract Warehousing Solutions

March 31, 2012 by  Filed under: Management 

Handling a large-scale business entails a number of functions relating to storing and management of inventory. Since these processes are rather time-consuming, most businesses outsource these tasks to a firm that specializes in providing logistical solutions. These are also known as contract warehousing firms that offer contemporary solutions for storing, monitoring, dispatching and keeping record of goods and products.

In countries such as New Zealand, there are several companies that offer this service as a core product. These go a long way in reducing risks relating to storage and shipment. Till sometime ago, the 3PL logistics model was in existence. However, companies soon realized that they need a deeper technological and analytical edge when it comes to managing logistics. This 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, dispatching products and keeping a stock of inventory. Warehousing and distribution of this type is in high demand as not all companies have large facilities where they can store their goods. And, it doesn’t end at just having a storage facility. One also needs to invest in trained manpower and allied technologies.

When a company enlists the services of 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 a special range of customized services over and above that.

It is important to choose a firm that has enough experience because warehousing and distribution can entail a number of risks and obstacles. It is important to hire 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 a track of the inventory.

Additionally, there are companies that 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 firm that can offer tailor-made solutions which cannot always be provided by a 3PL logistics firm.

So, when you choose a contract warehousing firm, it is important to select a firm that is willing to share the risks with you. This is the best way to ensure that the services being offered are in your best interest.

After working 8 years in supply chain management. I want to share my knowledge about warehouses and logistics. I am very passionate about writing and currently I am writing on contract warehousing. So this article is helpful to find out 3PL logistics firm in New Zealand.

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