Chicago's Leader in Warehousing and Distribution, Presents its Blog:

Why Companies Should Use a 3PL Partner!

Posted on Mon, Aug 12, 2013 @ 12:00 PM

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


Leveraging our core competencies in warehousing and distribution Neill Cartage and Warehouse designs and implements optimized solutions that will allow our customers to do one or more of the following:

Reduce total operating costs
Enhance internal productivity
Enhance competitive standing within their industry

We will design, implement, and operate a complete warehouse program that enhances your supply chain.  If you are looking for a comprehensive package, our strategic relationships with other key third-party providers (including transportation providers, freight forwarders, and other regional warehouses) afford us the capabilities to build a complete logistics solution. At Neill Cartage and Warehouse, you will find a management team dedicated to finding the best solutions for your company.

Optimize Capital & Asset Utilization:

Outsourcing to Neill allows you to free up capital and assets to focus on your core competencies. In today’s economy maximizing the return on your investment is critical. By eliminating the brick and mortar investment of operating your own distribution facility and the costs associated with it, you can divert capital and other resources to areas that directly contribute to your revenue stream.

Accelerate Product Movement:

It is a frequent misconception that outsourcing will result in a loss of control. In fact, Neill's management control along with your management’s attention should actually improve control of your supply chain. Added process control coupled with other efficiencies introduced by Neill will result in a greater velocity of goods through the distribution point. Accelerated product movement and lower inventories will translate to lower distribution costs and less capital tied up in inventory.

Open New Markets:

Outsourcing with Neill can enable you to position your product closer to your target markets, providing better service to your customers, and lower your overall costs. These improvements can help open new markets and enhance your competitive standing within your industry.



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Tags: Third-Party Logistics, Warehouse, Midwest 3PL's, Public Warehouses

Benefits of using a Illinois Warehouse

Posted on Wed, Sep 12, 2012 @ 11:57 AM

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


If you are operating a company and you want to make a cost effective choice and streamline your supply chain management, Illinois warehousing may be just the thing you are looking for. There are many benefits of Illinois warehousing, which is both efficient and affordable for companies of all sizes.

So, what are some of the benefits of Illinois warehousing that your company can enjoy if you decide to explore public warehousing options?

• Convenient, central location. You can choose a public warehousing provider located where your operations, where your customers are, or just about anywhere you choose.  This allows you to make sure your items are there when you need them and easy to distribute.

• Top-notch customer service. When you choose a reliable Illinois warehousing provider with a strong history in public warehousing, you can be confident that you are in good hands. Good customer service means you will always have the information you need at your fingertips (as will your customers) and you can focus on other things.

• Maximum in flexibility. You can typically engage in rental services for a short period of time or for a long period of time- that way, you only use public warehousing services when you need to and you aren't wasting money on unnecessary space. You can increase and decrease your usage based on need and avoid a strict contract that doesn't properly meet your company's needs.

• Safety: Reputable Illinois warehouse companies are bonded and insured so you do not have to worry about the safety of our items in the case of fire, flood or natural disaster.

• Faster deliveries. In many cases, because of the efficiencies built into the public warehousing process, the large volume handled by public warehouses, the established customer-service methods in place and the convenient locations, your items can be shipped to their end destination faster. This can help to make customers happy as they receive their items in a more timely manner.

• Up-to the-minute tracking and information. A good Illinois public warehousing facility will provide you with detailed tracking and reporting information when you need it. This helps you to ensure that everything is operating smoothly, and to understand where your items are and how efficient your supply chain is.

These are just some of the many benefits of choosing Illinois warehousing. Putting your warehousing and shipping in the hands of professionals is just smart business as it frees your company and employees up to work on other endeavors to grow and strengthen your company. Whether you have a small amount of cargo or many thousands of pounds of cargo each and every week, there is a public warehousing option available for you.


Contact Illinois's Leading Warehousing and Distribution company:

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

Public Warehousing - Chicago Illinois

Posted on Thu, Aug 23, 2012 @ 10:14 AM

Public warehousing removes certain aspects of your supply chain management, and outsources them to a professional in the industry.  When you choose public warehousing your goods and items will be storaged off-site.  They can be repackaged, labeled, and shipped all without you having to manage these process.  This can free you and your business up to focus on producing great products, innovating marketing, and taking care of your customers.

There are many benefits associated with choosing public warehousing that you should consider as you make your choice about how to handle the storage and distribution of your goods.

- Your goods and materials can be stored off-site in a public warehouse.  By doing so, you avoid the need to purchase and maintain the space where your goods are kept.

- With public warehousing you enjoy a great deal of flexibility.  You will only pay for the space that is needed and used.

- Your company saves money.  You go from a fixed cost to a variable cost.  Spending money only on warehouse space that is being utilized.

- You are able to utilize the warehouse’s labor force.  With flexibility in the shared warehouse labor your organization will increased profitability.

- You may also take advantage of the shipping discounts some public warehouses can provide.

Because of the many benefits of public warehousing, it is no wonder that more companies than ever before are looking into this option and consider making use of public warehousing for their storage, transportation and distribution needs. Finding a flexible public warehousing provider will create seamless supply chain solutions for you and your customers.


Contact Neill Cartage and Warehouse for all your warehousing and distribution needs!!

Public Warehousing Chicago


Tags: Chicago Warehouse, Third-Party Logistics, Warehouse

Midwest 3PL's "Logistics Providers"

Posted on Fri, Sep 02, 2011 @ 08:25 AM

The “Midwest” of the United States is one of the most important logistics corridors in the country, and just about any logistics company that matters has some presence in this region.  Chicago, is the third largest freight handler in the world, and the single largest rail transfer in the United States.  The Midwest is home to professional 3PL logistic service companies, strategically located to best service the Midwest region.  A Midwest 3PL’s / warehouse creates a strong anchor in a nationwide warehousing and distribution network.

The Midwest has long been a logistics stronghold and you can find quality third party logistics companies providing public and contracted warehousing, distribution, freight management, and inventory management throughout the Midwest.  Neill Cartage and Warehouse has been servicing the Midwest since 1946, with reliable and cost effective solutions.

Click Here: To discuss your logistic needs with a highly experienced professional from Neill Cartage and Warehouse.  


Midwest 3PL's and Logsitcs Services

Tags: Third-Party Logistics, Logistic Provider, Chicago Public Warehouses, Midwest 3PL's

How Third Party Logistics (3PL's) can help your business.

Posted on Fri, Jun 10, 2011 @ 08:18 AM

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


Third party logistics (3PL) is a term used for companies that offer services like transportation, warehousing, and inventory management to their clients. Previously, third party logistic providers were providing limited services like freight forwarding, but with the passage of time, these companies have gradually started providing a wider range of services that include everything from warehousing to supply chain management. Hiring a third party logistic provider is a common practice these days, because of many advantages associated with third party logistics.

Logistic Management is required in almost all kinds of businesses, but for businesses like manufacturers, wholesale, or distributors, logistic management can be absolutely vital. Previously, businesses were forced to make some arrangements within the company to deal with everything related to logistics. However, with the coming of third party logistic companies, it has become easier, and more cost effective for businesses to outsource logistic management to a specialist firm.

Third party logistic providers offer all kinds of benefits that we normally associate with outsourcing. For example, third party logistic services can offer a cost advantage, for the reason that hiring a 3PL company costs less than what is required for setting up and maintaining a logistic system of your own. If you are managing the logistics yourself, you will need to have a warehouse, transportation, and trained labors. Money is not the only thing that you can save as delegating the logistic management to a third party allows you to conserve your time and efforts, so that you can use your time and resources to focus on your primary business.

Third party logistic providers are specialist firms, having the infrastructure to deal with everything related to logistics. Which means you will be utilizing the most up to date services and technologies without having the need of upgrading or updating anything on regular basis. The expertise these professional firms have will help you in running your wholesale or trading business more efficiently. For example, when you are trying to enter a new market, it can take months trying to learn the ins and outs of that particular market. On the other hand, hiring a third party logistic providers mean that you will be able to use their experience in that particular market right from the start.


Chicago Third Party Logistics Warehouse


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All qualified new accounts receive one month FREE storage!


Tags: Third-Party Logistics

Why Outsource to a 3PL

Posted on Fri, Apr 22, 2011 @ 09:04 AM

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

Why Outsource?

Neill Cartage and Warehouse recognizes that the decision to out-source key operational functions is not always an easy one. When assigning product fulfillment, warehousing and/or customer care to a third party, companies can feel vulnerable and exposed. These are valid emotions, yet these concerns can be addressed by thoroughly assessing the rationale for outsourcing, then most importantly finding a proven outsourcing partner that is properly aligned with your company objectives.

There are a myriad of potential reasons for outsourcing operational functions, but the majority of those reasons can be grouped into the following main areas:

  • Core Competency
  • Service Enhancement
  • Capital Investment
  • Efficiency and Cost
  • Flexibility
  • Information Systems

Core Competency

At the root of the outsourcing decision is the concept of core competency. Companies seeking to outsource warehousing, fulfillment and/or customer care need to first assess if these core competencies are already embedded in their business, and if so are they executing these functions in an effective and efficient manner.

For some companies this is an easy decision. They have either not yet established these functions, or they recognize that these functions are not what they do well or cost effectively. They may also recognize that the value their company adds may come from areas such as marketing, retailing or product development, and functions such as distribution and call center management become “necessary evils.” In these circumstances, they should willingly look for a third party to improve their performance in these areas.

For others they may recognize that distribution and/or customer care are essential functions for achieving their company mission. This recognition does not necessarily mean that they should seek to build or maintain these functions in-house. Actually, it could mean quite the opposite. Utilizing a respected third-party provider, companies can gain “instant” core competency in these functions by leveraging the embedded and proven skills in their chosen service provider. If, however, a company views these functions as critical to their mission, already supports these functions in-house, and operationally exceeds customer expectations at the lowest cost…they probably shouldn’t seek to outsource these functions.

Service Enhancement

Closely aligned to the concept of core competency is that of service enhancement. Often companies begin by providing their own fulfillment or customer care services, yet they eventually realize that they do not have the experience or structure to consistently deliver a customer experience that they can be proud of. Such poor performance can stem from a variety off issues ranging from simple experience to a lack of systems and infrastructure.

Outsourcing to the right third party can be an effective means for quickly dealing with these inadequacies. A third party provider should have the people, processes, systems and support infrastructure to rapidly improve service levels, and in turn improve the customer experience and company profitability.

Capital Investment

To deliver excellent service in warehousing, fulfillment and/or customer care requires a significant investment on behalf of any company. The infrastructure required for a call center includes a significant investment in phone systems, computers, servers and networking, queue management, customer relationship management systems, and facilities. An even greater investment can be required for a distribution center considering the cost of racking, forklifts, conveyors, automated material handling equipment, warehouses, computers, management systems, and shipping/manifesting systems. Not only do companies face the up-front investment in these functions, they must also constantly maintain and improve on these investments to remain at the forefront in their respective industries.

In addition to this asset-based capital investment, companies must also consider the working capital implications of running these functions themselves. Cash availability for payroll, benefits and insurance for customer care and warehouse employees can prove to be a major hit to working capital. In addition, this working capital investment is only semi-variable…if sales or orders are light in a given month, people and their related working capital requirements cannot be easily jettisoned.

When a company chooses to outsource, the up-front capital investment related to these functions is truly eliminated. A respected third party provider has already made the investments (and continues to make Investments) necessary to support its clients’ business. Ultimately, these costs will be recouped by the third-party provider in its billing to clients, but these investments will be spread over many clients making the expense very affordable. Furthermore, these costs are generally imbedded in a provider’s “per order” (fulfillment) or “per minute” (call center) pricing, allowing clients to pay for these investments as a function of their volume. In essence, using an outsourced solution allows companies to pay for their capital requirements in a cost effective and “pay-as-you-grow” manner. In doing so, capital is preserved allowing companies to strategically redeploy their cash for items such as marketing, sales or product development.

Efficiency and Cost

Not only must a company make a capital investment for their fulfillment and customer care operations, to be competitive they must also carefully manage these functions on an on-going basis to ensure they are delivering the required service at the lowest possible cost. To do so, companies need the management, systems and hardware expertise to wring costs out of their operation. Furthermore, volume, either in terms of calls or orders processed, is inherently a key driver of unit cost. If a company is not working with sufficient volumes they will be incapable of delivering a true low-cost solution.

A proven outsourcing partner on the other hand is inherently focused on the day-to-day operation of these functions. All time, attention, and investment is geared around the efficient and cost effective delivery of these services. They have to provide this focus and attention… it’s not just another corporate function, it’s their business. In addition, these third-party providers are working for several clients and processing thousands of orders and calls per day. As a result they can truly streamline their operations to deliver highly efficient solutions.

On the fulfillment side, efficiency and cost reduction can also be garnered by utilizing the multiple warehouses and the freight clout of a third-party partner. With multiple warehouses, products can be positioned closer to the customer and in-turn can reduce overall freight costs while improving delivery time-in-transit. In addition, third-party fulfillment companies ship a significant amount of freight with a wide range of small parcel and less-than-truckload (LTL) carriers. As a result of their volume they are able to garner significant freight discounts that are generally available to only the largest companies. These discounts are often shared with their clients, thus further reducing the cost of product delivery.


Flexibility comes in many forms. It can be maintaining the staffing to meet the variability in daily orders and customer care inquiries. It can be having the resources to support specific marketing or sales campaigns that generate back-end operational “spikes” in the business. It can be the ability to get in and out of product segments or markets without incurring large set-up or termination costs. It can also be maintaining an organization that tests concepts, learns as it goes, and modifies operational approaches based on this learning. Flexibility in itself can be a key strategic component and can even create a sustainable competitive advantage. However, when pursued, this flexibility is not free. It can carry a significant cost for any company that wants to remain truly flexible.

To counteract the high cost of flexibility, companies can seek an out-sourced solution that is billed on a variable basis. Rather than having dedicated staff for the sake of flexibility, companies can literally buy this flexibility “as-they-go” by working with a third-party partner. Peak workload, either on a daily basis, or tied to a specific program, can be handled very incrementally by any out-sourced operation of sufficient size and scope. Trusted out-sourcing partners are also expert at the rapid deployment of new programs or products…they do this each and every day as they work to meet the needs of their clients.

In addition, purchasing flexibility does not need to be an all-or-nothing proposition. Working with a third party, companies can outsource individual programs or even peak demand to meet their flexibility goals.

Information Systems

Often overlooked, but vitally important, companies must maintain robust yet flexible information systems and networks to meet their fulfillment and customer care needs. This is no small task. For customer service and sales, comprehensive CRM and phone systems must be deployed to capture all relevant customer data and customer interactions. To be truly effective these systems must include every customer touch point including phone, e-mail and fax correspondence (inbound and outbound). Furthermore, these systems must be well integrated with the sales order and shipping processes to ensure that customer care agents have the necessary information to respond to customers on a real-time and fully accurate basis.

On the fulfillment and warehousing side, not only must the systems meet the basic requirements of inventory control and order processing, they must be flexible enough to respond to changing markets, product configurations and technology requirements such as RFID. To generate true productivity in the distribution center, they must also be more than an extension of an accounting system. Ideally, these systems should support a range of automation technologies that streamline the fulfillment process and ensure the highest standards of order accuracy.

To support these systems companies must also make the investments in their server and data centers to ensure the required up-time for their operations. Even small outages can generate negative customer experiences ultimately impacting the bottom line.

To address, or avoid, these system issues a company can seek an out-sourcing partner committed to information technology. In doing so they can avoid the cost and ongoing headaches of managing their technology and can instead focus on the value added activities within their business.


Tags: Asset Based 3PL, Third-Party Logistics

Why switch to a 3PL - Chicago Public Warehouse

Posted on Wed, Apr 20, 2011 @ 08:05 AM
More and more companies are outsourcing logistics to a third party provider for two key reasons. The first is to take advantage of the expertise that the third party brings in managing cost effective operations. And secondly, outsourcing allows the warehouse customer to become more focused on its own core competencies, making it stronger in building its business.

Among the benefits: reduced staffing and vendor costs, improved customer service, higher productivity, lower administrative costs and measurable service standard improvements. It all adds up to a better value for the distribution dollar.
Chicago Public Warehouse

Tags: Third-Party Logistics, Chicago Public Warehouses

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

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