Weber Logistics has opened a 300,000-square-foot warehouse in Eastvale, CA (Inland Empire Region) for distribution of food and consumer packaged goods for multiple clients.
Weber Logistics has opened a 300,000-square-foot warehouse in Eastvale, CA (Inland Empire Region) for distribution of food and consumer packaged goods for multiple clients.
Does your warehouse or 3PL provider have an internal audit program in place? It is critical for all operations follow standard operating procedures (SOP’s) – that’s how you get to the quality we need to deliver on our promises.
As the Distribution Center Manager for Weber Logistics’ Stockton facilities, and throughout my career in Warehousing, Logistics and Supply Chain, it has become apparent that one of, if not the, most important factors to success in the field is communication.
What is the key to a successful business? We all have a common goal and that is to grow our businesses. The key is to bring in new partners and not just customers. You want to form new partnerships and not categorize them as customers. Here are the principals to the partnership approach -
When the search begins for a 3PL, we evaluate and consider many things. One of the make or break factors includes pricing. Now, do you want a rate generated on the spot or are you willing to wait for some number crunching? While some warehouses offer standard rates that can be provided on the spot, these rates may not be the best deal you can get. Most warehouse pricing models use a variety of data which includes product volume, case size, pallet size and weight. Evaluating and manipulating all this data, means if you want the best rate for your situation, it cannot happen overnight.
In the past, annual inventories were executed at the end of the year based on an organizations accounting year. While that was a method to get a good annual inventory count, it had its challenges with the following:
3PLs utilize profile worksheets to calculate rates. Each 3PL has its own worksheet, but the approaches are similar. At Weber, we look at a variety of data, including product volume, case size, pallet size and weight.
It’s tough to compare competitive warehouse bids. Precise warehouse rates require a more detailed analysis. Companies often cannot provide all the data requested, so 3PLs have to make assumptions in order to complete the pricing profile. Different 3PLs make different assumptions, and these differences are reflected in different rates for the same exact volume and services you need to ensure you are getting an apples- to-apples comparison. When it comes to warehousing services, the best price doesn’t always result in the best value. Find a logistics partner you can trust that sets a high bar for quality.
To provide a warehouse pricing quote, most third party logistics providers (3PLs) use profile worksheets. Each 3PL has its own worksheet, but the approaches are similar.
As a 3PL that provides warehousing services, we get that question a lot.
If the characteristics of the project are not changing, then the real question being asked is, “Can you lower your profit?”
Well, we could, but then we’d have little or no money to reinvest in the business.
Eventually, quality would suffer and we’d go out of business.
