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How 3PL's Determine their Rates:

Posted on Tue, Jan 18, 2011 @ 10:31 AM

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


What information will the 3PL need to give me a quote?

The more information you can give the 3PL, the more accurate your quote will be.  Here is a list of what you will need:

  • A general description of what you want the 3PL to do and what your goal is in outsourcing. 
  • A description of your product: sizes, weights, special handling and storage requirements.
  • How the product will come in:  palletized, floor-loaded, truckload, LTL, rail, intermodal, small package.
  • Number of stock keeping units - SKU’s.
  • How the product will go out:  truckload, LTL, rail, containers, small package, customer pickup.
  • Number of inventory turns.
  • Projected volume


How are my rates determined?

3PL’s have two things to sell: labor / handling and space / storage.  

The 3PL begins by developing a labor rate made up of all of its labor-related costs: hourly wages, benefits, necessary equipment, and than divides that amount by the number of hours available vacations, breaks, and holidays are subtracted.  This gives the 3PL an hourly rate they need to charge to cover their costs.  A profit amount is added to this rate.

The rate is then multipled by the amount of time needed to perform the necessary tasks: unloading freight, picking orders, preparing documents, etc.  Some 3PL’s use engineered standards and some use standards developed from years of experience. 

This rate is determined by the amount of square footage your product will occupy in the warehouse and for how long it occupy that space.  That is multiplied by a rate per square foot that the 3PL has calculated.   Typical rate methods include per pallet, per case, per hundredweight, per ton or a “per square foot” rate based on monthly occupied space.

Assessorial charges
Most 3PL’s have a list of charges that cover services provided that are not included in the storage and handling rate.  These might include stretch-wrapping, labeling, restacking, creating packing lists, bill of lading charge, taking pictures, handling damage claims with carriers.

Minimum charges
3PL’s typically charge a minimum for such items as inbound storage and handling and monthly recurring storage.


Are my goods Insured?

This is the most common question users of 3PL’s have.  The typical 3PL carries several types of insurance:

  • Workers compensation: make sure the policy is up to date.  It is conceivable that you could be held liable for injuries sustained by others who are involved in handling your goods.
  • General liability
  • Cargo insurance: make sure it is sufficient to cover the value of your goods transported by the 3PL truck.
  • Warehouse Legal Liability Insurance

Many warehouses limit the amount of damages that can be claimed.  This is usually stated as an amount per pallet or case.   Be sure you clarify with the 3PL the value of your product to insure adequate coverage.  It is also advisable to contact your insurance agent to determine if your goods adequately covered in an outside facility.


Chicago warehousing and distribution

Neill Cartage and Warehouse is offering 1st month storage for FREE to all qualified accounts.


Tags: Third-Party Logistics, 3PL Rates

Neill Cartage and Warehouse's Referral Program

Posted on Thu, Jan 13, 2011 @ 08:01 AM

Neill Cartage and Warehouse has implemented a Customer Referral Incentive Program that gives our customers the opportunity to save on future warehousing or shipments when they refer others to our services.

How The Program Works

For every new customer referral that results in the referred company establishing credit with Neill Cartage and Warehouse and stores product with us or moves freight with us, we will give the customer that provided the referral $100 - $500 credit, depending on the amount of work the referral does with Neill!

This is an ongoing offer that applies to any new companies that are referred. There’s no limit, as long as the referral establishes credit and moves or stores product with Neill Cartage and Warehouse. Here’s the process:

  • Step 1: You refer a potential customer.
  • Step 2: Referral establishes credit with Neill.
  • Step 3: Referral moves or stores freight with Neill.
  • Step 4: You receive a $100-$500 discount / gift card!

Remember, you can take advantage of this offer many times over. It pays to let others know about the perks of using Neill Cartage and Warehouse!

Call Us

Call us at 1-708-547-7676 to learn more about our referral program, or send us an email at and we will contact you to answer any questions you may have.


Chicago warehousing

Tags: Chicago Warehouses, Chicago Public Warehouses

Outsourcing Warehousing Logistics needs in Illinois

Posted on Fri, Jan 07, 2011 @ 09:46 AM

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


Any business will tell you that juggling warehousing logistics and business related work is not easy, especially when it's a small business. Running and managing a warehouse means having lots of systems and processes in place, along with qualified staff.

The good news is that you can outsource warehouse logistics to a third party provider like Neill Cartage and Warehouse. Basically a third party is a company that has warehouses where different businesses can store their goods under a single roof. One of the main benefits of outsourcing warehousing logistics is the confidence of knowing that your goods will be stored in a proper manner.

Third party warehouses are run by logistic companies.  These warehouses are large enough that they are sub-divided into specific storage space for each client. In addition, if your storage needs are special, these logistics companies have the capability to fulfill these needs. For instance, if your product is a hazardous material they have designated areas for hazmat related products.

Logistic warehouses have several docking areas which make it easy for simultaneous loading and unloading. In addition, they use modern handling equipment and racking methods that ensure all goods are safely stored.

However, to reap business profits from outsourcing warehousing logistics, you have to hire the right logistics company. Just because a company offers you the lowest quote, it does not mean that they are the right fit for your business needs. Make sure you hire a logistics company that has the necessary experience in warehousing logistics.

Logistics Provider


Tags: Chicago Warehouses, Third-Party Logistics, Chicago Public Warehouses

5 Reasons to Outsource your Warehousing / Use a 3PL

Posted on Tue, Jan 04, 2011 @ 08:00 AM

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


There’s definitely more than 5 reasons why a company might turn to a third party logistics provider, but here are a few common ones.

  1. To provide supplementary supply chain support to test the waters in new regional markets or countries where your company doesn’t currently have a presence.
  2. If you are a company whose business is seasonal in nature using a 3pl provider allows you to scale your warehousing space, labor, and transportation to provide full support during the peak months of your business while cutting back during slower months.
  3. To increase on-time performance and realize efficiencies with the management of your inventory by using a 3PL provider that has superior technology and processes than your in-house operations.
  4. To take advantage of lower transportation rates provided by logistics firms that have significant buying power due to the volume of freight they deal with and their ability to leverage load consolidation and backhaul opportunities.
  5. To quickly build a multi-location distribution network with lower risk, without the significant capital investment associated with building out a network on your own.

Chicago Warehousing

Tags: Chicago Warehouse, Third-Party Logistics, Logistic Provider