The Importance of Outsourcing to Warehouse Management
Warehouse management combines numerous minute details involved in logistics and supply, resulting in a seamless whole. At least, it does when handled competently. To help ensure streamlined operation and cost reduction, outsourced pallet management can provide tremendous benefits. Why should you consider outsourcing pallet management? What should you look for in a pallet provider? Choosing the right company with which to collaborate can provide tremendous savings and relieve numerous headaches. However, choosing the wrong company can have detrimental ramifications. Below, you will find an outline, detailing what to seek in a provider.
Compliance Certification - If your pallet provider is not compliant with federal and industry regulations, you can find yourself exposed to legal and operational risk. Do they take the proper steps to safeguard themselves? Are their hiring practices and safety programs compliant? Can they produce end of year reporting and other audit requirements? The right pallet provider should also provide you with accurate pallet asset accounting, necessary for compliance with Sarbanes-Oxley; CT-PAT (Corporate Trade Partners Against Terrorism) and other functions critical to your organization.
No Brokers - Brokers are bad news in almost any industry. These middlemen make a profit by bumping up the prices paid for their goods. In this instance, pallet brokers do not own their own pallets, but simply connect you with a company who does and then charge a premium for their services. Avoiding brokers will help ensure reliable delivery and the best value pallets.
Transportation - It is also important that your provider own their own transportation fleet. Choosing a provider who lacks their own fleet means you will pay extra for pallets, simply because the provider must rent the transport to move the pallets. This cost is passed along to you, greatly increasing operation costs throughout the year.
JIT and VMI - Just in time delivery ensures that you have the pallets you need, when you need them. This allows you to make use of advanced palletized solutions, without the hassle of storing unused pallets. Vendor managed inventory allows you reduce costs in pallet tracking, ordering and management. Both of these are beneficial options for any warehouse management system and can help provide better profitability.
Experience and Expertise - Pallet specifications and pallet programs should fit your operational needs precisely. The provider you choose should have the experience and expertise to help you find the right pallet and design the right program for your needs. Any provider that takes a "one size fits all" approach (such as pallet leasing or pooling companies) should be avoided.
Range of Services - Warehouse management means dealing with more than one location. Choosing the right provider will help you attain the services of a single vendor to service every one of your locations with every pallet service they require, from recycling to repair to on-time delivery.
No Third Parties - Finally, the best provider should be the only source for all of your services. They should be capable of supplying all of your needs, without bringing in any third parties. The inclusion of third-party providers increases costs and decreases efficiency in many different ways. Finding the right provider obviously has tremendous ramifications on your warehouse management. With the right choice, you can cut operational and managerial costs significantly, while simultaneously provider better operation and reliability.
IFCO SYSTEMS provides nationwide pallet management with reusable, durable wood stringer pallets. IFCO offers just-in-time delivery, online account management, and reliable pallet supply and retrieval year-round. With the industry's most rigorous compliance program and a company-owned fleet, IFCO has the capabilities and expertise you need. Call 877.430.IFCO or email info.na@ifcosystems.com to get started.
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