Defining Quality Facilities and Management for Outsourced Distribution:
You must establish that the warehouse can meet your operational requirements before you can assess its quality. Where are the best warehouses located and what are the elements that make up a great warehouse? Have you ever been surprised by a requirement you need to meet? Asking the right questions can help you find answers to questions you might not have realised you should be asking.
3PL Warehousing Services Checklist:
1. Storage - will you be able to find the items you store easily and with the correct labels? See how inventory is stored and how products are fulfilled for other clients. Is it efficient? Do they use automated processes? Does everything seem well organised? A core competency should be gained through efficiency.
2. Overall Cleanliness - The warehouse should be generally clean when inspected on a spot basis. It's very easy to see how well managed a dirty, messy warehouse is and how it represents their standards. Would you like your product in such a mess?
3. Pest Control/Abatement Program - Even if there are no pests seen during a visit, you should ensure that a preventative program is in place. The absence of one will definitely lead to rodents getting in, especially in cold climates (and if they find food sources).
4. Food Grade - You probably already realise what requirements a food-grade warehouse must meet if your product is food. While if the goods you are storing are not food, it can be a great "plus" if they are stored in a food-grade environment because there are a lot more standards attached to them (primarily in terms of sanitation and cleanliness).
5. Security – Ensure that the warehouse is equipped with an alarm system. Even though you’ll have inventory insurance, you never want to rely on it, because any stolen and damaged inventory can directly affect the company’s ability to fulfill orders.
6. Up to Code – Ask for permits and certificates proving that the warehouse complies with all building codes, fire codes etc. It will likely require a sprinkler system, and fire extinguishers (currently dated) should be present. Make sure the warehouse is in compliance with applicable city permits and regulations.
7. Additional Insured Status and Insurance - As a 3PL Partner has the right amount and kinds of insurance to handle its business and services that you contract to them. Make sure to ask your 3PL for a listing as an additional insured. In most cases, you’re familiar with your own insurance requirements and it is highly recommended that you can contact your insurance provider to learn more about them.
It’s Crucial to finding the right overfall fit. Of course, these other considerations are only added assuming you’ve already discussed business processes, the cost of the services, and how this partnership will benefit your business. Before you sign off, consider them as part of your overall due diligence.
In additional services in 3PL, RCSLIndia offers warehousing and inventory management. We offer no-obligation quotes to companies seeking to leverage our outsourced services.
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