Convert Your Warehouse to Cash

Major Elements of 3PL Warehousing Finding the right customers Having the right equipment Knowing how to rate it for a profit Having the right legal language, forms and insurance Are you certified for what you are handling WMS (Warehouse Management System) is essential Can or How will you grow 20% of 3PL’s belong to IWLA, but they do over 60% of the business

Finding the right customers Food is handled by 80% of 3PL Warehouses – requires FDA Certification Internet fulfilment is the largest growing sector – must vet your customers well, requires changing how things are done quickly Pick and pack operations yield a larger margin that just storage – requires special equipment, longer terms in contract Chemicals, commodities, just in time for manufacturers, fine art, clothing, pharmaceuticals, auto parts, electronics, etc.

Rate for Profits How you develop your rates must coincide with how you sell Customers often don’t know their warehouse business well 66 questions – each with a rate to be calculated To be competitive, you need to know all expense parts of your business applicable to the total rate

Legal & Insurance Warehouse Lien – extremely important, don’t waive it Don’t become responsible for the goods, just the receiving, storage, and shipping – recalls Standard industry language Use an insurance broker who knows the 3PL warehouse business Use an attorney who has tried warehouse cases

Certification Food – FDA – Food Modernization Safety Act Chemicals – EPA – Labeling – be very careful – batteries Pharmaceuticals – FDA Medical Devices – FDA Cleanliness, rodents, pests, temperature, employee illness, etc.

Warehouse Management Systems Almost all need to be linked to the customers WMS, the customer wants to know where their goods are at most times Inventory Knowing your costs Rating Technology Equipment, forklifts, racking, shrink wrap, conveyors, labeling, RFID, etc.

Will You Grow Two biggest challenges face by 3PL warehouses Not Enough good paying customers Customers growing faster than I can expand Important to work on your business, vs in your business

Thank You Steve DeHaan, CAE President and CEO International Warehouse Logistics Assn Des Plaines, IL (Chicago)