How to Choose an Outsourced Warehouse Supplier to Align with Your Business Development?

The core of the third-party logistics (3PL) selection process is choosing a long-term partnership. It can also be a disastrous business decision if the right outsourced warehouse is not chosen. Many factors should be considered in choosing the right warehouse, from company needs and technology requirements to the expertise of the warehouse provider. Read on to find out what exactly they are.

1.Consider current and future needs

A company’s current needs are important but shouldn’t be the only focus. By focusing on today’s needs and neglecting to plan for future needs, the business is likely to downsize. For example, if a company is planning to enter the global market in the future, choosing a 3PL partner capable of providing global shipping is a lot less of an unnecessary hassle for the company. Therefore, a company must choose an outsourced warehouse provider to keep up with its growth and provide all the requirements. The list below contains the most important services a company will need. Please ensure that the warehouse supplier offers all these services.

• Correct storage. The products will be stored in the outsourced warehouse for a period of time. Therefore, ensure they are stored correctly; for this, people need to check that the outsourced warehouse is up to the requirements for storing their products.
• Returns management. In any business, there will be returns, and it is the responsibility of the warehouse to deal with these returns. Make sure the chosen warehouse has the capacity to manage these returns.
• Good labeling. The outsourced warehouse should be able to label packages correctly.
• Repackaging. This service is very important. Sometimes the goods are not delivered packaged appropriately and therefore need to be repackaged. An outsourced warehouse that offers that will save money and time.
• Palletizing and sorting. Products should be stored on pallets for security and ease of handling.
• Invoicing. Pick the different items and follow a series of instructions to label the items with a ticket.
• Fulfilling orders. Receiving orders from customers and completing them accordingly.

2.Determine your technology requirement

Inventory management is the most challenging area of warehouse management, which can be decisive for the business’s success. Asking the warehouse supplier how they manage their stock and techniques is a must. Think about the need for regular stock updates or receiving orders directly from the company website for a real-time ordering process. When talking to potential suppliers, ask them about their ‘warehouse management system’ to gain insight into their future roadmap and technical capabilities. Do they have any integrations already in place? Is it compatible with company shopping basket software? Does it work with marketplaces such as Amazon? These are all questions people should know the answers to before settling on an outsourced warehouse.

3.Know your budget

Being clear about the budget is the first rule of the business world before getting involved in any business deal. Store the goods where the company can afford them and, most importantly, carefully choose the services a business needs. People should only choose services necessary for their goods or the company’s well-being. Therefore, before talking to all potential warehouse suppliers, people must be clear about the specific services they need and their budget. If people do this, they will have a clear view of which warehouse options offer the most viable solution for the warehousing requirements.

4.Location

The location of the outsourced warehouse people consider renting depends on many factors, such as the suppliers’ location and the products’ final destination. The entire supply chain and budget will determine the number and location of the outsourced warehouses. For example, a warehouse close to a port can offer many benefits, such as reducing freight miles to the distribution center and preventing duplication of shipments when transporting goods to the logistics center.

5.Professionalism

The outsourced warehouse people will directly impact the entire distribution side of the business, so choose a professional warehouse provider. Additionally, a professional 3PL is able to deliver a custom fulfillment solution for diversified demands. People can judge professionalism by a site visit. A website can cover a multitude of sins, so please don’t skip the step of checking out the warehouse because of the impressive sales material, visit it in person before signing off. Keep an eye out for staff working and interacting, ask questions about processes such as storage, fulfillment, security, health, and safety, meet with staff and look out for evidence of excellent communication.

A warehousing supplier can determine a company’s future, a good supplier can scale the business, and a bad supplier will do the opposite. So when choosing a warehousing partner, consider the tips above to ensure the relationship is good from day one.

If you would like to consider Yun Fulfillment as the warehouse supplier or order fulfillment solution provider, please get in touch with us.