Borrowed from the military, 3PL stands for “Third Party Logistics” which represents the concept of using a third party to outsource the distribution and fulfillment aspects of a business. In the automotive industry, 3PL companies provide warehouse management of products like wheels and Bearings In Wisconsin allowing business owners to concentrate their expertise on growing their business.
When small businesses experience growth, it’s wise to reassess warehousing options. Warehousing services can maximize efficiency by tailoring space and cost as inventory needs of a business fluctuate. It’ important to consider 5 essential elements when choosing a warehouse as a 3PL provider.
Don’t be fooled into thinking that warehouse cleanliness doesn’t matter since your customers never see it. Attention to neatness speaks to the standards to which the handling of your product will be held. Look for a warehouse that is clean inside and well maintained outside. Be sure the warehouse has specified areas and procedures for trash, materials to be recycled, and hazardous waste.
Any 3PL company should have regular pest prevention even if you don’t warehouse food products. Pests seek shelter in cold weather and love to nest in cardboard. Imagine the damage to business reputation if a product carried pests to customers. Consider the benefits of a warehouse that is approved for food storage. The additional requirements imply higher standards.
Organization Speaks Volumes
Look for orderly and efficient use of space. Is effective labeling used to make products easy to locate? Does the warehouse optimize automation? Is there ample space for frequent stocking and distribution? Products crammed into a space costs time when warehouse employees retrieve them for distribution.
No business owner wants to trust inventory to a 3PL that is later served a notice of building code violation. Ask if permits and inspections are up to date. Look for elements of fire prevention and precaution. Are exits clearly marked? Is a sprinkler system in place? Are points egress clear of stacked product?
Insured and Secure
Finally, ask for proof of insurance. Ask warehouse personnel about security measures. Be sure the warehouse has theft prevention measures in place.
When choosing a 3PL company to outsource warehouse distribution of automotive components such as wheels, rotors or Bearings in Wisconsin, visit Pioneerwheel.com today to find a perfect fit.
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