Things You Should Know About Warehouse Agreements

If you are looking for a warehouse to store or distribute your manufactured goods, there are lot of factors that you need to contemplate. Almost all businesses in U.S. have started to outsource their warehousing needs to make sure that the products are stored safely. With the increasing demand of warehouse facilities, finding the one that adequately accommodates your needs can be quite a challenge.
 

Listed below are some of the things you should take into account while signing a warehouse agreement:

• Storage Period And Charges: The duration for which you need to store the goods should be clearly mentioned in the warehouse agreement. You may be charged according to the space occupied in the warehouse or the number of packages. All these details should be discussed beforehand with the warehouse management and stay in effect throughout the lease duration.
• Usable Space: Depending upon the type of goods you want to store, you may want to lease a specific amount of space within the warehouse. Make sure the exact square footage area is included in the agreement. Many business owners make the mistake of calculating this space by considering the total area of the exterior of the facility. Instead, you should take into account only the space used inside the warehouse.
• Floor Load Limitations: If your require storage of bulky goods or heavy machinery, make sure you clarify with the staff if there are any floor load limitations. The warehouse agreement should clearly state the approximate weight that can be handled by the foundation without causing any sort of damage.
• Handling: This clause in the agreement should mention the charges related to other services provided by the warehouse staff. These may include unloading goods in the warehouse, storing and packaging them for further transportation, inventory management and reporting, product labeling etc. Though most of these costs are included in the overall monthly warehouse charges, you may need to pay an additional fee for certain services such as handling and storing goods after the normal business hours, providing packaging materials, compiling stock statements etc.
• Safety Of Goods: The warehouse agreement should also have a clear mention of the measures to be followed to ensure safety of your stored goods. For instance, if you need to store hazardous chemicals, the warehouse must be fully equipped with fire extinguishers and offer fireproof packaging material for goods. Check for all these details before you sign the agreement. 

No matter you choose a public, private or contract warehouse, make sure you read the agreement carefully to avoid any sort of hassles in the long run.

Choosing A Food-Grade Warehouse

The storage and warehousing of perishable food items call for attention towards several minute details such as temperature, hygiene, pest control etc. It is important that the finished products and raw material should be kept in a controlled environment so that their quality can be retained for a longer period of time. However, with a wide range of options available, it can be difficult to find a facility that best matches your specific set of requirements.

 

Given below are some factors that need to be considered while choosing a food grade warehouse:

• Type Of Products: You must determine your needs to evaluate the type of warehouse that you need. Get an estimate of the space you will require in the warehouse, the duration for which the goods will be stored before being shipped and if you need to expand the storage space during certain months. You can choose from the different types of food grade warehouses- dry storage warehouses, cold or frozen storage warehouses, chilled or refrigerated storage warehouses, depending upon the items you intend to store.
• Level Of Cleanliness: The warehouse facility you choose should be absolutely clean and hygienic. The management and staff should follow the best sanitation practices to maintain a germ free environment as well as avoid any sort of health hazards. There should be adequate measures to prevent bacterial or fungal growth and infestation of rats, ants, roaches as well as other pests. Cleanliness is an important factor to keep the food in a palatable condition.
• Condition Of The Building: Besides the internal condition, it is equally important to inspect the exterior warehouse building. It should be well-maintained and comply with the building regulations of the area. The doors and windows should not have any cracks and the surroundings should be hygienic. Also, there should be sufficient equipment to deal with unforeseen circumstances such as fire breakout.
• Focus On Experience: Food grade storage requires the staff to possess a certain level of expertise and knowledge. Therefore, you must make sure that the warehouse you are choosing has prior experience in storing the specific type of food items. The staff should be able to control the temperature and humidity levels to maintain the shelf life of the goods. Not just inside the warehouse, the same quality standards should be followed during transportation of the food items to avoid any damage. 

The warehouse service provider should be licensed and registered with the concerned authority. The staff should be efficient in using advanced technology to track inventory, manage the lot and maintain an efficient supply chain.

Tips For Choosing A Public Warehouse

Many businesses are opting for public warehouses due to the flexibility, convenience and affordability they offer. The clients are charged according to the volume of goods stored, warehouse area occupied and the services availed. Though a public warehouse often serves the purpose of short term storage during high demand seasons, choosing the one that fits your needs is important.  

Here are some tips that can help you choose the right warehouse services for your business:

• Thorough Location Analysis: It is essential that you choose a public warehouse that is located within close proximity of your operations facility. The area should also have a good access to major rail and ocean ports. If your goods have a regional consumer base, you can choose a warehouse at a central location between the manufacturing plant and the market.
• Visit The Site: You should personally visit the warehouse site to examine the level of cleanliness, maintenance and security in the facility. Notice the working of the management and employees as well as the general work culture of the warehouse. Make sure that all the work is managed in a streamlined manner.
• Assess Storage Capabilities: The warehouse you choose should be well-equipped with the latest technology to maintain your company’s inventory and supply chain. For instance, if you need to store food grade items or harmful chemicals, make sure they have the necessary systems support to keep your goods safe till the time they are dispatched to the destination.
• Look For Room To Expand: Although public warehousing needs are usually short term, you should always ascertain that the facility has room for expansion in case you need to expand your inventory. Moving to a new warehouse each time you increase the volume of goods can be quite tedious and expensive. Therefore, you must ask the executives about the warehouse space they can offer at present as well in future, if you plan to expand your business.
• Check References: While evaluating a public warehouse, it is best to check for independent references from the company’s existing and previous customers. Ask them about their experience working with the company, how well their products were handled and any issues they have come across. It is better to talk to clients who have somewhat similar storage requirements as yours.

Choosing a public warehouse involves a lot more than simply looking for a place to store your products. You should pick a facility that offers a combination of professionalism and significant experience to handle your business needs efficiently.

Advantages Of Multi-Client Warehousing

Multi-client warehousing allows different businesses to use a single warehouse where they can share their assets and resources. It can act as a perfect solution for smaller companies that require limited storage space. It allows sharing of the costs of space, labor and equipment, thus reducing the overall expenses of the company. It provides a wide range of options without investing in staff or equipment. It enables you to fulfill your individual requirements.

Given below are various advantages of multi-client warehousing:

• Flexibility –Multi client-warehousing offers more flexibility to smaller companies who have varying storage needs. It is beneficial for those companies who deal with companies who have fluctuating demands or seasonal products. It does not offer a long term contract which makes it beneficial for the companies who have short term goals.
• Reduce costs-. If you are sharing your space with another business, this means that the  expenses including the labor and operational cost are also divided among all the clients. You need not pay for any extra space but only for the one which is used for your business. The additional cost required for services such as specialized tools, equipment or packing services is not borne by single user, but distributed between clients.  
• Improves service and efficiency: Logistics experts use analytic tools to manage the warehouses. Professional, experienced and knowledgeable staff helps in managing the inventory efficiently. The improved service also enables to have a quick access to markets.
• Decreased risk and burden: In a single end user there are more risks involved related to insurance, pensions, real estate, and systems. Burden is also reduced due to division of responsibilities between clients in multi-client warehousing.
• Occasional specialty needs: There are some manufacturers who have  specific needs for the equipment or capabilities such as rail access, secondary package capabilities or certain material handling equipment  which may be  required occasionally. Multi-client warehousing ensures higher utilization of such resource by multiple users. 

Multi-client warehousing has many benefits and can act as a logical solution for business storage and distribution needs.