Manufacturers and distributors of goods need somewhere to store their goods prior to shipping them to their customers. When a good is produced by a manufacturer, seldom is it shipped immediately to the manufacturer’s customer. One option for storing goods is a contract warehouse. A contract warehouse receives the goods and carefully manages inventory until those goods are ready to be shipped to a customer. A contract warehouse will handle the shipping, receiving, and storage of goods in a facility and with labor that is dedicated to the one account.
A large amount of capital is required to secure a building, purchase equipment and staff operations. Commonly the 3PL provider will already have space available within one of their existing buildings or will be willing to acquire space for the dedicated operation. Experienced contract warehouse operators are able to find the perfect location for the distribution center whether it is in an existing facility or building a distribution center from the ground up. Their solutions will include designing a layout for the building, implementing process, staffing and training, and equipment and tools to help ensure efficiency and customer service levels.