Using Strategic Decision Making to Choose a Public Warehouse

As a business owner or manager, you’re used to making strategic decisions every day. And to make those decisions, you more than likely analyze numerous options based on the particular goal you want to achieve.

Choosing the right public warehouse involves that same strategic decision-making process. Without it, you could partner with a third party logistics (3PL) provider that may not be the best match for your business needs. To ensure you select the best public warehouse for your company, here are some tips to consider when making your decision.

Optimizing Your Public Warehouse Selection

A strategic decision encompasses several factors: actions to be taken, resources to be committed and precedents to be set. When considering a public warehouse, the following questions will get you on the path of making a strategic choice.

- What are the capabilities of the public warehouse (e.g., size, value-added services provided, facility capabilities, etc.)?
- In what geographic area should the warehouse be located in? *Tip:* This should be based on your market reach, customers’ needs and distribution factors. There are site selection and business modeling tools that can help you choose the best geographic warehouse area for your business.
- How much inventory should be stored in the public warehouse?
- What other outsourced warehousing, distribution and logistics services will your business need and which warehouses can serve those needs?
- What type of technology and systems support are employed in the warehouse facility and how will it benefit your business (e.g., inventory management, order fulfillment services like kitting or pick and pack, processing options, customization, distribution options, packing services, contract trucking, import and export services, etc.)? *Tip:* Your business may not need all these support services now, but it may in the future, so a warehouse with a full complement of warehousing, distribution and logistics services can give your business the strategic edge.
- How well can the 3PL accommodate future expansion? *Tip:* If your business expands or needs additional space during peak times, you want a public warehouse that can handle your volume. After all, once you choose a 3PL, you don’t want to switch because the facility can’t accommodate your business growth.
- How soon can the warehouse get your processes going? *Tip:* As a guideline, public warehouses typically need two to four weeks lead time before beginning to receive your goods and ship them out.
- How will you measure the performance of the 3PL?

Forming a Strategic Partnership with a 3PL

Just viewing a public warehouse as a place to store your inventory limits what a 3PL can provide to your business. While outsourcing your warehousing, distribution and logistics offers your business a fixed expense without the hassle of building or leasing your own building and equipping and staffing it, public warehouses have evolved into important strategic partners for companies of all types and sizes.

Once you’ve strategically selected a storage facility, here are some guidelines for forming an effective strategic partnership with your 3PL.

- Encourage an environment of collaboration with warehouse management.
- Formulate gain sharing opportunities where your company and the 3PL benefit from cost-saving measures, such as incentives for programs that lower distribution and shipping costs.
- Brainstorm ways to secure guaranteed rates from various suppliers throughout your supply chain.
- Institute a quality control policy to encourage accurate order fulfillment to ensure customer satisfaction.
- Encourage the 3PL to take on more of a consultant role, contributing strategic ideas and methodologies that drive value, rather than just executing your warehousing, distribution and logistics functions.

The Brendamour Advantage

At Brendamour Warehousing, Distribution & Services, our main focus is the success of your business. We believe in building a foundation for long-term success by consistently delivering value year after year.

Brendamour Warehousing is always looking out for the best interests of your business, forming lasting strategic partnerships built on trust. And we grow that partnership by always striving to identify more opportunities for savings to help you optimize your entire business.

We welcome the opportunity to be your public warehouse and 3PL provider. We’re just a click or phone call away. Simply contact us at any time to learn more about our warehousing, distribution and logistics services and how we can ensure the success of your business.