Warehousing is an essential component of the logistics process in any company that maneuvers large quantities of goods. While some companies choose to handle the entire process on their own, any firms outsource the process to a warehouse service company – here is what you can expect of these service providers:
- Pick and pack – one of the services offered by these companies is the reception of truckloads or trainloads on behalf of their client, disassembling the cargo, repackaging the items for specific destinations and labeling packages;
- Warehouse design – as warehouse operations specialists, services may include installing pallet racks, equipment placement, training, or initiating tear down rack removal as needed.
- Sub-assembly – many warehouse services undertake simple sub-assembly work on behalf of their clients. The sub-assembly is usually just a part of procedures handled by the warehouse company, the complete process usually includes the packaging, the labeling and the shipping of the sub-assembled goods;
- Space for a vendor-managed inventory – vendor-managed inventory is a business model in which the supplier maintains an inventory of certain products based on the instructions received from a major client, so that the client have access to those important products at all time. Many suppliers turn to warehouse service companies for providing the dedicated space necessary for such inventory and might also use the warehouse service for managing the client’s orders.