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Neill Cartage and Warehouse is Chicago's premier full service logistics, warehousing, and distribution company.  Servicing the Midwest since 1946. 

Neill Cartage and other public warehouses act as 3rd party logistics locations (3PL) for companies who desire to outsource their storage, transportation, and other related job function. These 3PL's put the concerns and or welfare of several companies under one roof.  Managed by a trained and skilled staff that makes each of the companies that they serve a priority, with the customers of these companies being their major concern. Advanced technology helps the trained associates keep an accurate account of each and every company’s inventory.  The job of labeling, packing, shipping and distributing together with the task of taking inventory on a regular basis makes a public warehouse’s job a very important. It serves as the link between the supplier and the customers.

3PL facilities operate on different levels of expertise, depending upon the contract terms, types of clients involved, and customer requirements, among other facets that might possibly act as variants.  There are various types of 3PL, however public warehouses fall under the standard 3 PL type. In a standard facility, logistics is not the central focus. The function of storage is the main concern with the other supply chain elements secondary to the storage components.  The goal of the 3PL is to safely store all goods, while at the same time tracking their present and future inventory levels. This difficult and timely task helps to alleviate the stress from the company’s executives who already have enough on their plates.

In brief, a 3PL is a facility that is committed to serving several companies at one location, thus specializing in their needed steps from storage to distribution. In other words, a 3PL interacts with the participating parties to ensure successful end results.

Neill Cartage and Warehouse is Chicago's premier full service logistics, warehousing, and distribution company.  Servicing the Midwest since 1946. 

Outsourced warehousing and third party logistics is ideal for growing businesses. Businesses, such as small and medium enterprises, need a streamlined system to take advantage of e-commerce activity and distribution.

In today's digital world, e-commerce is easily accessible and within the reach of most companies. A well-designed site and marketing campaign may drive sales but, the real test of any company is the delivery of products to consumers in a timely and efficient manner. Small businesses need to focus on how they can get the sold goods to the paying customer without causing a bottleneck in the process; outsourced warehousing is the ideal option. Start up businesses might lack the knowledge of logistics and transport which will cause the order flow to fall behind and unhappy customers.

Fulfilment warehouses since as Neill Cartage and Warehouse can help these small businesses with order fulfilment ensuring that their order processes are seamless. Outsourcing the logistics, storage, transport, and stock control allows the businesses to focus on developing the marketing of their products, which will inevitably lead to more sales and more shipping.

For small and medium enterprises, outsourced warehousing is really the way to go. The businesses will have limited manpower and shipping knowledge, which can slow the order processes and lead to customer service nightmares. Fulfilment warehouses can sort out the process from initial order to pick and pack to delivery of goods.

Looking to outsourced warehousing for shipping needs is an effective business strategy for growing businesses. Public Warehouse can provide their expertise in shipping to other countries saving the small businesses time in paperwork that accompanies customs and export of goods. This will also save the new business money in salaries for employees that might not be needed all of the time.

If you are looking to warehouse in the Midwest region of the United States, you can count on Neill to get you moving in the right direction!

Neill Cartage and Warehouse is Chicago's premier full service logistics, warehousing, and distribution company.  Servicing the Midwest since 1946. 

Order fulfillment is the process of fulfilling an order, and can include everything from delivery to distribution. It’s an act that major companies rely on third party logistics services in order to save money, time, and increase their business efficiency.

Supply and demand can be a cruel game for business owners. It is part of the made-to-stock logistics chain that demands a forecast of demand be made to determine what the supply should be. If a forecast of paper demand is high, then the supply should also be high so that there is enough of the paper to allow everyone to buy it. It’s a balancing act that is hard to manage, but can be done properly through outsourcing the a third party logistics service that has experience.

Order processing is sometimes referenced as broad type of order fulfillment as well. Order processing doesn’t just cover finding products in a warehouse and shipping them out; it also includes stocking the warehouse and knowing where inventory is at all times. It also includes the ability to forecast need of further inventory in the future, so you'll always be ready for future orders.

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Neill Cartage and Warehouse is Chicago's premier full service logistics, warehousing, and distribution company.  Servicing the Midwest since 1946. 

3PL

Describes businesses that provide one or many of a variety of logistic-related services.  Types of services may include public warehousing, contract warehousing, transportation management, distribution management, freight consolidation.

A 3PL provider may take over all receiving, storage, value added, shipping, and transportation responsibilities for a client and conduct them in the 3PL's warehouse using the 3PL's equipment and employees, or may manage one or all of these functions in the client's facility using the client's equipment, or any combination of the above.

Accessorial

A supplemental activity or material, outside normal handling and storage, that is billable in accordance with the clients contract.

Accessorial Charge

The amount charged to the client for providing accessorial service or materials.

Airbag

An inflatable bag used to fill empty space on a load of product to keep the product from shifting.

Allocated Inventory

Inventory that is reserved for a specific order, customer, or other purpose and is not to be used for standard order fulfillment purposes. Once allocated, this stock is no longer available as usable inventory for new orders. 

Anniversary Billing

A method of billing where the client is billed for one month of storage once inventory is received. If this product remains in inventory, it will be billed an additional monthly charge each month on the anniversary of its arrival.

Annual Inventory

Physical count of all product in the warehouse done on a yearly basis.

Apron

The area outside the dock door which is used by delivery vehicles to park or position for loading and unloading. The Apron is specifically designed to a depth that will allow trailer floors to fit with the warehouse floor in a way that facilitates loading and unloading.

Assembly Area

Location in the warehouse where products and loads are collected and combined.

Available Inventory

The amount of shippable product in the warehouse; does not include product designated as damaged, on hold, or pending shipment.

Bar Code

A UPC code that identifies product. It consists of a series of black bars and is scannable. The bar code represents an identification number that is stored in the computer system along with other information about the product.

Back Haul

When an outbound shipment is delivered, instead of coming back empty, a load is picked up from a destination close to the final stop and then delivered either back to the warehouse or a location near the warehouse. A Back Haul creates revenue as opposed to coming back empty which would be an expense.

Banding

A type of plastic or metal strapping that helps support a load and hold it together. Can be used to strap and secure product on a pallet or skid.

Bay

An area in the warehouse designated by markings on the columns or floor.

Bay Storage

Use of the bay for storage.

Beginning Inventory

Inventory level and count at the beginning of a period.

Bill of Lading

The Bill of Lading (BOL) is an official document that accompanies every shipment. It serves as the contract between the party that owns the freight and the carrier.  When a driver for an outside carrier signs the Bill of Lading, he/she accepts responsibility for the shipment. Upon arrival at the destination, the consignee or customer signs the Bill of Lading to indicate that the shipment was received and all goods are present as itemized. This customer-signed Bill of Lading then serves as a Proof of Delivery (POD) document.

Bonded Warehouse

A bonded warehouse is one that has been approved by the U.S. Treasury Department who, due to observance of revenue laws, has put the warehouse under bond or guarantee. A bonded warehouse can also be a warehouse utilized for the storage of merchandise that is on hold until duty is paid.

Bulkhead

A movable railcar partition that is used to secure a load.

Bulk Storage

Storage of large quantities of product in shipping containers. May also be the storage of product that is not packed.

Carousel

Material Handling Equipment designed to bring product to picker so that the picker can remain stationed in a designated picking location without traveling. Ideally, order information is loaded or automatically transferred into the carousel system, and multiple orders are picked by multiple pickers at one time. Types of carousels include horizontal and vertical.

Carrier

The carrier transports goods from the client to Neill and from Neill to the consignee. The carrier can be Neill (Neill owned truck), a transportation company, or the railroad. Responsibilities include carrying the goods safely, in good condition and in a timely manner.

Carton

A unit of product, a protective casing around a product.

Chassis

A frame with wheels that supports a container that is being transported over land.

Chock

To use a wood or metal wedge to block the wheels of a truck while it is being loaded or unloaded.

Clamp

An attachment to a forklift that allows it to encircle and grasp product.

Clear Height

The height pallets can be stacked while leaving clearance for product movement or for lights, sprinklers, etc., hanging from a ceiling.

Commodity

Product identified with specific clients (i.e. paper, chemicals).

Concealed Damage

Damage to product that is not obvious until the product is examined or the condition becomes apparent during storage or transfer.

Consignee

The client’s customers are referred to as the consignee. Just think of the consignee as the “end user” or the company where Neill ships the stock.

Consignment inventory

Inventory that is in the possession of the customer, but is still owned by the supplier. Consignment inventory is used as a marketing tool to make it easier for a customer to stock a specific supplier's inventory. Read my article on Consignment Inventory.

Consolidate

Combine two or more shipments going in the same direction or to the same destination on a single trailer.

Container

A container is a box that is used to transport product, and is widely used for international shipments. Marine containers or intermodal containers can travel on ocean liners, railroads, and on chassis.

Contract

A binding agreement between Neill and a client stating terms of the agreement, storage fees, transportation rates, and accessorial charges.

Contract warehouse. 

A warehouse operation managed by a third party logistics (3PL) provider for a specified period of time. The 3PL manages a client's inventory and order fulfillment processes. Pricing scenarios may vary, and storage, labor and equipment resources are typically dedicated to the client for the duration of the contract. The client may or may not share in the building and equipment expense.

Cross-dock

Product or orders that are brought into the warehouse but not put-away. Instead of the stock arriving and being placed into storage, the stock is temporarily stored at the dock to be delivered or goes out immediately on another vehicle to be shipped. This stock is usually shipped immediately or within a day and does not go into storage.

Customer Pick-up

Load that is picked up at the warehouse by the customer (usually within the same day the order is placed).

Cycle Counting

The physical counting of portions of inventory on an on-going basis. After a period of time all products have been counted. A cycle is then defined as the time it takes to count all inventory once.

DC

Abbreviation for Distribution Center. A warehouse that manages and distributes inventory per the direction of corporate systems and customer demand.

Dead Stock

Product that has been in inventory for an extended period of time without being moved or ordered.

Distribution Center

Neill's Distribution Center is a warehouse facilities that store, manage, and ship inventory on behalf of its clients. Inbound carriers bring product into the Distribution Center. Product can be immediately allocated to existing orders, or it can be placed into storage for the purpose of filling future orders. Outbound carriers transport stock from the Distribution Center to the end user.

Dock

A warehouse door with an extending platform where trailers are loaded and unloaded.

Dock Plate

A moveable metal plate that is placed between the warehouse dock door and a trailer or railcar and makes it easier/smoother to access a trailer or railcar with a forklift or similar equipment.

Drayage

A container or piggyback is moved from a rail yard to another location and then returning that piggyback / container back to the initial pick-up point, is known as a dray. It is important that these containers get unloaded quickly and returned back to the original point so not to incur detention charges.

Dunnage

Refers to packing materials such as cardboard, empty pallets, air bags, air pillows, packing peanuts, or other materials utilized to protect freight.

EDI (Electronic Data Interchange)

Electronic Data Interchange refers to a computerized exchange of information with the client through the warehouse management system. It is a method of exchanging orders, invoices, shipping forms and other documents over the computer.

By eliminating the clerical, mailing and other costs associated with paper-based information, EDI reduces costs, time delays and errors.

Facility

The physical warehouse or plant where storage takes place.

FIFO (First In, First Out)

Inventory allocation method whereby the first product stored is the first product that is utilized or allocated for the fulfillment of orders.

FILO

First-in, last-out system of inventory.

Floor Load

Refers to product stacked directly onto the floor of a trailer without pallets or slip sheets; product must be unloaded manually without the use of a forklift.

Forklift

A warehouse vehicle, also called a lift truck, which is used for lifting and transporting pallets of product. A forklift may have a special attachment on the front for specialized handling of product.

Freight Bill

An invoice for transportation charges generated when a load is delivered.

Fulfillment

The picking and processing of orders for shipping from a distribution or warehouse.

Full Truckload

This term refers to a shipment comprising a full or almost full load on a truck. A full or almost full load is considered to be 32,000 – 44,000 pounds.

Gross Weight

The total weight without deduction for tare (includes packaging and container).

Handling

The labor involved in moving product received from the trailer into the warehouse dock and then into the storage location on the “IN” and moving the product out of the storage location and into a staging location to then be loaded onto a trailer on the “OUT”. The Warehouse Forklift / Clamp Operator moves product IN and OUT. If additional handling is involved such pick & packing etc., that are not the normal handling as defined in the warehouse contract, these would be defined as additional accessorial charges for handling.

HazMat

Short for “hazardous material.” Material is deemed hazardous by the government or a carrier. HazMat may require special handling or special facilities. Not all warehouses or carriers will handle HazMat.

In-House Damage

Damage to product that occurred while in the warehouse (i.e. water leak, dropped product, etc.).

Intermodal

Intermodal means using 2 or more, modes of transportation: rail, truck or ship. The stock can move over sea by ship, over land by rail and then, at the main rail switch, the container is removed and put on truck chassis. The stock is then carried by truck to our Distribution Centers.

Initial Storage

Warehouse storage charge for the month when product is received; it is typically billed when product is received.

Inventory Turns

The number of times inventory turns is calculated using the following method:

a) Sum the Inventory In and the Inventory Out, and then divide by 2 to arrive at the Throughput.

b) The number of Inventory Turns is equal to the Throughput divided by the Average Inventory.

Kitting

Assembly of product or parts within the warehouse.

Less Than Container Load (LCL)

Shipments weighing less than required for the application of a full container rate. When the shipment is less than a full container load, the freight may be calculated as an LCL shipment.

Less Than Truckload (LTL)

Shipments weighing less than required for the application of a truckload rate. A typical full truckload shipment is 32,000 – 44,000 pounds. Weight breaks may vary across LTL classifications and in some instances it is less expensive to apply a full truckload rate even thought the shipment size may be less than 32,000 – 44,000 pounds.

LIFO (Last In, First Out)

Inventory allocation method that selects newest inventory first.

Lift truck

A vehicle that is utilized to move and transfer product/freight in a distribution center, warehouse, terminal, manufacturing site, or dock. Often referred to as a forklift.

Load

The product that is picked and loaded onto a truck and transported to a consignee.

Logistics

The processes and services associated with planning and implementing flow of storage and shipments in a 3rd Party operation required to meet the customers’ needs in an efficient manner.

Lot

A group of product with the same run or manufacturing date.

Lot Number

Identification number assigned to specific product for tracking purposes that is usually tied to a date or a production run.

LTL, Less-than-truckload

Transportation term that describes shipments that are less than a trailer load. LTL also is used to describe the carriers that handle these loads. LTL carriers generally use strategically placed hubs to sort and consolidate LTL shipments into full-truck-load shipments.

Lumper

A contracted worker who assists in the loading and unloading process.

Manifest

A document that lists all of the products being transported; used when loads are combined.  A loading Manifest will be printed to the Warehouse so that they know who will be picking up the load and how to properly load the trailer.  

Material Handling

The services and processes the warehouse must utilize to move, store and otherwise handle materials.

Net Storage Area

Space in the warehouse (in square feet) that is actually used for storage. This does not include aisles, docks, offices and staging areas.

Net Weight

Product weight before being packed with materials or packaging. The total weight of the product with deduction for tare or packaging. For example, the net weight on a roll is the total weight of the roll less the fiber core and wrap.

On-Hand Inventory

The amount of product in the warehouse. The product may be designated as shippable, damaged, on hold, or pending shipment.

On Hold

Refers to product that is designated as unable to be shipped; may be product with damage, questionable quality, expired shelf life, etc.

Order

A directive, sent by the owner of the goods, to ship product out of the warehouse. An order specifies product, quantity, shipping date, and destination and may contain special instructions.

OSHA

Occupational Safety & Health Administration, a branch of the US Department of Labor 

Overage

When more has shipped on a load than was intended or was indicated on the BOL.

Over the Road Carrier

A truck or trailer used in hauling freight by road to destinations outside a 70 mile radius of the facility.

Packing List

The packing list is created in the Distribution Center. The packing list identifies the quantity and weight of each product on the order and each individual item # (unit ID, serial number, etc.) if applicable. It is a comprehensive list identifying exactly what is being shipped on the order.

Pallet

A wooden or plastic base upon which layers of product are stacked for storage and transporting with a forklift or pallet jack.

Pallet Jack

Material handling equipment consisting of pallet forks on small wheels that is used in the warehouse to move cases of product. It may be a motorized unit guided by an operator who stands on a platform; or it may be a motorized or manual unit guided by an operator who is walking behind or beside it.

Paper-roll clamp

Designed specifically for the handling of large paper rolls, the paper roll clamp is a lift truck attachment that clamps around the roll and also allows for a full 360 degree rotation.

Partial

Less than a full pallet of product. 

Physical Inventory

A physical count of everything in the warehouse.

Pick/Pack

A warehouse operation that involves picking individual items from cases and putting them together a carton or pack for shipment.

Pick Ticket

The Pick Ticket is a document used by the Forklift / Clamp Operator or picker in the Distribution Center who will be locating the stock for the order. The Pick Ticket contains information such as, product location, quantity, lot numbers, serial numbers or unit numbers.

Piggy Back

The process of transporting a trailer on a railroad flatbed; the trailer is then hauled to its final destination by truck.

Pinwheel

Pinwheeling is a process of arranging pallets on a truck or product on a pallet to make the best use of space when dealing with items of different sizes.

P.O.D.

Proof Of Delivery; a signed bill of lading.

Pool

A combination of less than truckload (LTL) freight built to form a full or almost full truckload. By “sharing” space in a vehicle, the client and Neill can minimize cost.

Private Warehouse

Warehouse that is operated by the owner of what is being stored inside of it.

Public warehouse.

A business that provides the use of space for storage to a variety of clients. This space can be leased for varying amounts of time determined by the contract set by both parties.

Rack

Metal framework in the warehouse used to store products several levels high.

Radio frequency (RF).

A data system made up of devices that use RF to transmit information into a host system from different locations or from “on the job.”

Ramp

Inclined area that connects to the warehouse to facilitate easier movement in and out of the warehouse by trucks and other equipment.

Recurring Storage

An amount charged to a client for monthly storage; it is based on the amount of product stored in the warehouse on the first day of the month or specified by the contract.

Refrigerated Warehouse

Temperature controlled warehouse that serves well for storage of food and other perishable products 

Reverse Logistics

The logistics needed to plan return of product or a load. This may include a return order, transportation, and put-away.

RF

Radio Frequency scanning and transmission of data.

RFID, Radio frequency identification

An alternative to barcodes, an RFID is a device on an object used to transmit data to an RFID receiver. RFIDs vary in size depending on the object and hold more data than the standard barcode. They are also advantageous because the data stored on the RFID can be easily changed as they do not require line-of-site in order to transfer this data.

Shipment

Freight that is transported from one location, such as a regional distribution center or manufacturing site, to another, such as a consignee.

Ship To

Delivery address for the consignee.

Shuttle

A load transported from one customer-related facility to another; does not include product shipped to a consignee.

SKU

Stock Keeping Unit; a product code assigned by the owner of the goods.

Slotting

Approach used to determine the best placement and locations for products in the warehouse depending on its dimensions and how often the item is picked.

Spot

To place a trailer in a designated location or warehouse door.

Spotter

A Neill driver who moves trailers in and out of dock doors.

Stack Height

The number of pallets rolls & skids that can be safely stacked on top of each other; the client supplies this information.

Stacking

Placing stock on top of other merchandise in order to more efficiently use space.

Staging

The process of getting product from its storage area and placing it near the loading area for later shipment; or in cross docking, the process of unloading product and organizing it for immediate shipment.

Staging Area

A designated area of the warehouse near the loading dock where product is placed or arranged for shipment.

Stencils

Stencils are markings placed on the product with the ID information required by the customer for the product that they are receiving. This can be in different forms dependent on the specifics for the customer. It can be a label or just a chalk inscription with the product ID.

Stock

Inventory.

Storage Rate:

Charge to client for all storage costs, usually on a month-to-month basis.

Strap Loading:

Product is loaded onto a pallet and then secured with strapping

Terminals

Break points for carriers to strategically reload freight for delivery to the final destination.

Third Party Warehouse

Warehouse operated by a 3PL Company that houses the products of their clients. 

Trailer

An enclosed vehicle, towed by a truck, which is used for transporting product. There are a few different types of trailers. These include tractor trailers, semi-trailers, flat beds and reefers (refrigerated trailers). Most trailers are 42', 45’, 48’, or 53’ long.

Tractor

The truck that pulls a trailer.

Transportation management system

System used by the transportation department which aids in such tasks as manifesting shipments, finding rate quotes, and managing carriers.

Traceability

Ability to track a shipment from the time it leaves the warehouse until the time it arrives at the consignee. 

Trackable

Total quantity of weight, space, and pallets.

Truck Door

Area in the warehouse that is used to accommodate the loading and unloading of trailers.

Unitization

To take individual items and ship them as a single larger item.

Value Added Services

Extra services that a distribution center will perform in order to meet the needs of their customers. Typically refer to special assembly, packaging, or picking services.

Vendor-managed inventory

In a 3PL, this describes the instance of a client (vendor) controlling the inventory at the 3PL warehouse. This type of inventory control can be managed in multiple ways including a periodic physical check of inventory by the vendor in order to determine what needs to be supplied to the warehouse. The vendor can also have remote access to the warehouse’s inventory control system and order based on the levels of supply and demand visible electronically.

Warehouse Receipt

Receipt for product received into the warehouse.

Warehouse Management System

WMS is a software designed to function around three main components: putaway, replenishment, and picking. By directing these three components, the system can logically manage the movement and storage of product in the warehouse.

Zone picking

Method of order picking where the warehouse is divided into pick zones. Items are picked from each zone and then transferred on a conveyer system from one zone to the next.

Neill Cartage and Warehouse is Chicago's distribution warehouse / center for several clients around the world.

What is a distribution warehouse? How it assist manfactures and retailers in local markets?

A distribution center for a set of products is a warehouse or other specialize building, which is stocked with products / goods to be re-distributed to consumer, retailers, and wholesalers.  A distribution center is a key part, the ordering process, of the entire order fulfillment.  A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center. The name by which the distribution center is known is commonly based on the purpose of the operation. Neill Cartage and Warehouse services several different manufactures, retailer, and consumer, and is considered all of the above to different clients.

Distribution centers are the foundation of supply chain as they allow a single location to stock a vast number of products.  Since a large retailer / manufacture might sell thousands of products from thousands of vendors, it would be inefficient to ship each product directly from each vendor to each store.  Many large retailers own and run their own distribution center, while smaller retailers may outsource this function to dedicated local logistics firm that coordinates the distribution of products for a number of companies.

Neill Cartage and Warehouse works with both large and small manufactures / retailers to handle their distribution network in Chicago and the Midwest.  We are the eyes and hears for these manufactures as they hundreds of thousands of dollar of merchandise in our warehouses.   

Good business people are always looking for ways to save money, while also maintaining good quality products and services. Also, many companies, in an attempt to save money, are outsourcing anything they can to other companies. For example, a 3PL (Third Party Logistics) firm could help a business that is unfamiliar with the city find a Public Warehouse for their products they may want to ship to the area. There are many benefits to outsourcing the logistics part of supply chain management. Below is a list of ways companies can and have benefited from using these third party companies to handle their logistics issues:

1. The companies have saved a lot of money by switching to a third party logistics firm. The cost effectiveness comes in with the money companies save in terms of labor. By a hiring a firm, you do not have to pay your own employees to do the logistics part of the supply chain. Considering labor is the most expensive part of a business, this is really where a lot of savings can be made, since most warehouses do not charge as much as it would to hire a team of logistics people to work for your company.

2. When you use a third party logistics team that is located in the city where you will be storing or sending products or both you get the advantage the third party company has of their knowledge of the area. Usually, third party logistics companies can get really good rates on storage for products, since they know the area and who to go to.

3. Finally, third party logistics companies can customize their services to your business's needs. Sometimes it can be hard for a logistics team that works for your company to have the resources to meet all of the requirements that come down from management. When you outsource this work, the third party wants to please their clients, so they will have better resources to meet most, if not all, of the requirements of management. For example, if your company wants to keep their products fresh, then a third party company would be able to negotiate with airlines to ship the products to the best location possible.

If you or your company is considering any kind of outsourcing, it is obviously, important to do all of the necessary research first. A company can only save money through outsourcing if the third party keeps the standards of their clients and if they keep their clients happy. If you choose a third party firm and you are unhappy with their work, do not be afraid to tell them so, and if the problem is not solved you should do something different. When the wrong third party firm is chosen, it can cost the company countless amounts of money, so it is important to get it right the first time. When done properly, third-party logistics firms can really help a company with saving money and by giving valuable resources to their clients.

Neill Cartage and Warehouse is Chicago's premier full service logistics, warehousing, and distribution company.  Servicing the Midwest since 1946. 

If you are not sure of what a 3PL provider is then give me a minute to clarify it.  A third party logistics service or 3pl as they are referred to, is a business that serves as a middle man.  They handle manufactures / importers freight and warehousing needs. Why would you even think about doing this? It is as straight forward as this, experience, cheaper pricing, and service. A 3pl permits a medium sized company that usually would not get decent shipping discounts from the LTL providers to now be in a position to play on an even playing field with some of its large competitors. I guess you can describe it as "Sams Club" pricing for shipping and transportation costs.

Now that we have explained what a third party Logistics Company is... should you use an asset based or a non asset based 3pl? Let's explain these one by one so that you can make an educated decision.

Asset Based 3PL

An asset based service holds many supply chain management "assets". These assets may include anything that is pertaining with supply chain management, including technology systems, truck fleets, vehicles, aircraft, warehouses, warehousing equipment, forklifts etc. As you can see you would be restricted to using the assets that this third party logistics company suggests. There is no doubt you will be better off then before, but here is the real question to ask yourself: How do I ultimately know I am getting the best value available out there?

Can you also see how this conflict of interests could pose a problem when it comes to handling claims resolution if they are using their own trucks and equipment. Pretend for a moment that if you had a claim on damaged freight, would you feel at ease with the idea that your claim would be handled in the shortest time and reimbursed for the highest value possible?

Non Asset Based 3PL

This 3PL performs all of the services of a third party logistics service such as quoting freight, scheduling pickups and deliveries, routing, and auditing, but doesn't need to own all of the transportation assets that an asset based 3PL would own. Instead, this type of 3PL usually possesses only desks, computers, and freight industry expertise. Now you can see why they are referred to as "transportation consultants".

Now this is an important point to dwell on, since a non asset based 3pl is not restricted to using any particular warehouse or carrier and generally have no ties to carriers, they are now able to use their ability to negotiate the best deal for you. Negotiations will be done with the recognized value oriented carriers that meet your criteria and then you get to decide which carriers to work with.

Since there is no conflict of interests here, there is also no anxiety about resolving any claims that you might have either. Now you can see why many companies choose to team up with a non-asset based provider. They appreciate that they now have the unlimited freedom to partner with the service providers that best meet their needs.

Neill Cartage and Warehouse is Chicago's premier full service logistics, warehousing, and distribution company.  Servicing the Midwest since 1946. 

Warehousing might be public, private or contracted. A private warehouse facility is owned or operated and manned by the owner of the products it contains. A public warehouse rents space, typically by the square foot or pallet, and could charge for some other services, such as accepting or perhaps loading goods.

A contract warehouse facility is not owned or operated by the organization whose products it holds, but there is a agreement set between the warehouse operator to the tenant. Normally, staff and management of the merchandise kept are generally part of the agreement. In a real sense, a contract warehouse is an important component of the company whose products are kept there. They will become somebody which assumes order fulfillment services, pick and pack services or even additional logistic tasks.

Advantages of Contract Warehousing

Contract warehousing companies provide a great deal of expertise for logistics demands. Contractors will be experienced in warehouse operations and supply chains. They often have knowledge that business owners don't have. Because there is a long-term association set up, it is in their interest to see that your project goes well.

A contract warehouse can do each of the jobs an in-house operation would likely manage. They will recieve supply and hold products. They're going to pick-and-pack for distribution and supply order fulfillment services. In a nutshell, each of the duties a private warehouse would most likely perform.

A number of contract warehouses offer even more. They have distributor networks set up and associations with other services, allowing them to pre-ship in large quantities to depots across the region. For the majority of entrepreneurs, a fulfillment center gives a complete logistical plan. This frees the company manager to focus efforts into other responsibilities of their business including manufacturing as well as revenue.

Disadvantages

Since this is a contractual relationship, there could be problems if the agreement is finished prematurely. It may be difficult or impossible to alter the contract once it is in effect. This can additionally end up being to your own advantage, so the facility will be bound to the terms and conditions of the agreement. This means that alterations in the business conditions may involve spending money on warehouse services which are not getting used.

While in the contrary circumstance, auxiliary area is usually available to augment increased area demands. Numerous contract warehouses contain both a contract and also a open public sections. The public part may be leased to cover high demand circumstances.

One more drawback arrives when the contract warehouse isnt furnishing a high standard of customer care. Be certain you decide on a honest company to take care of your fulfillment needs.

Charges can be a problem if it is not addressed beforehand. A contract warehouse has a set overhead to satisfy. These people may need to cover equipment or offerings you do not use (like cooling). Make sure you simply buy offerings you need.

Lastly, a contract warehouse center is really a separate business entity. Make sure you work on somebody professional and stable which can certainly fulfill your requirements.

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