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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.

Click Here: All qualified new clients receive 1 months free storage.

Each year, in its July issue, Inbound Logistics publishes the most definitive resource on third-party logistics and the outsourced logistics market. If you are already a subscriber, you know that we ask our readers which third-party logistics companies provide excellent service, and publish the results. If you are not yet a subscriber, you can get a list of this year's Excellence Survey winners, as well as the Top 100 third-party companies in the world, by checking the box below.

We're now conducting next year's 3PL Excellence Survey. The results will be presented in the July 2010 3PL issue. Give us your input and we'll express our appreciation by entering you in a drawing for a free 18-carat gold Parker pen, which includes a coupon for free engraving.

http://www.inboundlogistics.com/top10/

When manufacturers or importers find themselves without storage facilities they may often try to deal with the problem by building their own spaces on site. However, unless this is ongoing business, this can usually prove to be an expensive way to do it. On the scene is the Chicago public warehouse facility which will take care of excess stock until the end user is ready for it. Chicago fulfillment takes care of the needs of manufacturers and importers when they find themselves unable to handle all the goods.

The problem lies with one off or larger than normal orders for goods that have to be supplied at a future date. The importer or manufacturer cannot hope to store the goods in good condition because he is normally more concerned with delivery dates. However, making use of other storage facilities in the area will allow him to take on more work to allow him to focus on his core buisness. For example, take the importer who will supply a certain number of goods to a nationwide chain of outlet stores. When his goods come into the country, very often they are huge amounts which have to be broken down. Now what he needs are facilities where these bulk goods can be broken down, repackaged perhaps, and sent on to the vendors in the countryside. This can be a logistical nightmare, particularly for small suppliers, so having the ability to use space that is rented is a godsend to say the least.

He will not have to rent space, rent workers to repackage, or indeed, find the packaging because very often the warehouse facilities (3PL) will handle all of it.  It would be a one stop shop for anyone who imports goods. Once he has taken the order and his goods arrive in the area, he can then leave it to the storage facility to carry on with the work leaving him free to carry on selling.


These storage facilities usually have high ceilings, good ventilation and sometimes controlled temperatures which may be necessary in some circumstances. It also means that he can relax in the knowledge that the goods will not perish therefore no losses. State of the art lifting and loading machines also mean that the goods will not be damaged while the goods are away in storage. Otherwise this would bring complaints from all sides for sure. Once his reputation is shot, he will find it hard to gain the trust of his customers back so it is better to keep everything safe in the first place.

Of course, contracting these services out to other people does not come cheap, however, the cost is borne by the end user who accepts what he has to pay.

 Click Here: All qualified new accounts receive 1 month free storage.

If you can't keep up with today's technology and growth you will not last very long in this economy; it is very demanding for everyone. Each company demands so much from the next and the next right on down the line to where it literally forces each business to move forward and improve their existing ways. In order to provide excellent service and stay ahead of the competition.  Take warehousing for example; instead of just renting or buying out a large building and storing boxes you must have some state of the art equipment to run a profitable company.  Warehousing is a very large industry, if you have a company that made a house hold item that was widely distributed to all of the major department stores but you were based in Chicago you would more than likely choose a local Chicago Public Warehouse to handle warehousing and distribution.  This would free up space at your planet, and also keep traffic down from pick-ups and delivers.

The average warehouse has very high ceilings; along with many shelving units and maintain high quality storage facilities; some provide a repacking service with shrink wrap which is very important keeping items from damage or freshness. The service needs to be efficiently run to ensure the products safety including keeping items cold or frozen; which require special refrigerated departments. And with that they would also need back-up generators in case a loss of power, these things are very important; considering damages could be in the millions.

Inventory is also important to consider and losing a company's product is not very professional; many warehouse use computerized inventory to ensure quality storage. In this time and age even a warehouse facility should provide unique needs for the consumer's demands which can actually be very extensive; but if you cannot provide what they are looking for in a service then they will go somewhere else for their needs.

Having a door to door service is excellent public relations even having a direct store delivery arranged; you need to make your customer happy with the services you provide. Pick up their merchandise right from the factory and delivering directly to the warehouse, track all of the inventory instantly, package and shrink wrap all of their products. Then when it comes time from delivery to the final destination whether it be a department store or a restaurant it will be delivered right from you and they know that they can depend on your services no matter what it is.

So all in all you know what your customers needs are and it is your responsibility to provide quality service to them with state of the art technology and excellent security to protect the consumer's interest and products. Public Warehouses and logistic divisions are a good way to protect and store any product and deliver them in a timely manner.

Neill Cartage and Warehouse, is proud to announce the Chicago Blackhawks have eliminated the Vancouver Canucks in six games during the second round of the playoffs. Once again making their way to the Western Conference Finals. Awaiting their arrival is the San Jose Sharks who have been resting and waiting since rolling the Winged Wheels to the curb last weekend

Many companies are deviating from having their own warehouses and transportation services to that of contracting with various fulfillment services such as Neill Cartage & Warhouse. The use of third party logistics, or 3PL, means a substantial cost savings to companies who would ordinarily have to lease or otherwise contract these services. For the small company who lacks space for building a warehouse, with room for a fleet of trucks, the cost can be prohibitive. For companies who have the space, but don't currently have warehouse or transportation services, the capital expenditure may not be within the scope of their current budget allowance.

For many companies, contracting with a fulfillment services company is easier and cheaper than doing the work themselves. After all, they don't have to worry about storage, transportation, or distribution of the material. With a phone call to the 3PL company, they arrange for the material to be shipped to their customer or they pre-arrange a schedule for a specified amount of product to be released to the customer on certain days of the week or month. They don't even have to call a trucking company, since most fulfillment services companies have their own fleet of trucks for transportation of goods. It takes the responsibility off the company, and they can concentrate on producing more product.

Qualified new clients can receive 1 months free storage.

Chicago is number one, in the country, for empty warehouse space.  How has this happened?  Will it ever turn around?

http://www.chicagobusiness.com/cgi-bin/multiMedia.multiMedia.pl?mmId=934 pl?mmId=934

Lindsay Ellis, Head of the Logistics Sector Group and a partner at leading Law firm Wright Hassall LLP gives the following cautionary note to service providers in the Logistics sector based upon a recent High Court ruling. Read the full article at the following web-link

http://www.hillman-consulting.co.uk/logistics_providers_be_careful_what_you_sell.htm

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 third party companies 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.

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.

Take advantage of our free supply chain assessment here!