3PL Warehousing Services
Warehousing services offered by third-party logistics (3PL) companies tend to fall into one of two categories: general warehousing or contract warehousing.
Broadly speaking, general warehousing offers the most flexibility and scalability, while contract warehousing provides more control and stable costs. Choosing which one is right for your company will depend on your unique needs.
General Warehousing & Contract Warehousing – What’s the Difference?
General (Shared) Warehousing
- Your products are held in a shared-use facility alongside products from other clients
- Resources, such as equipment and technology, are shared between several clients
- Pooled resources allow for flexibility and scalability
- Often a pallet in/pallet out setup with a monthly square footage rate
- Ideal for periods of high volatility (seasonal swings, short-term overflow storage)
- Pay by use pricing with variable costs
- No warehouse lease and/or term rental agreement required
Contract (Dedicated) Warehousing
- Your 3PL provider acts as your distribution arm, operating at your direction – you retain full control over how your business runs
- Choose between your own warehouse or reserved space in your 3PL provider’s facility
- Providers may offer a dedicated team, including staff and management, to work exclusively on your contract
- Equipment and/or technology is supplied to support your operations
- Term contract with simplified invoice and fixed or flexible rates plans
Factors to Consider When Choosing Any Type of Warehousing
Does your provider offer expected warehouse productivity levels? An experienced 3PL uses best-practices in distribution to keep down-time to a minimum, while providing faster shipping times, better inventory control and less damaged product.
Can your 3PL provider flex to accommodate changes in volume and scope? Flexible space, staff and equipment enable you to expand and change your storage requirements to suit your business needs.
Are you looking for a warehousing or distribution partner? MTE Logistix has the facilities, equipment, technology and expertise to meet virtually any need.