Finding Quality Warehouse Space When Space is Limited

Finding quality warehouse space can be difficult.  Oftentimes companies spend too much time and resources searching for warehousing providers that meet their ever-changing needs. To complicate matters, most logistics managers do not have the expertise or an established network of outside warehouses to do so efficiently.

With constantly changing storage requirements, companies need an efficient way to manage their outside warehouse networks including food safety requirements, insurance coverage, rate negotiations, and transportation. One solution to finding quality storage space when space is limited it to utilize a managed warehouse service provider. Utilizing a managed warehouse service provider can deliver value through:

Simplified operations—Companies who provide managed warehouse services will essentially manage all of your outside warehouse relationships. This will leave you with just one invoice to pay for your entire network of suppliers.

Established Networks— A managed warehouse service provider will have a vast database of warehouses in various locations.  They have already built relationships with these providers and have verified them for quality.

Team of Experts—Companies who provide managed warehouse services will have a trained team of experts in operations, engineering, warehouse legal liability, rate negotiations and food safety requirements. This is something most companies simply do not have in-house.

Reduced Risk—When you work with a managed warehouse service provider, you’ll have access to warehouse legal expertise that can protect your products from being lost, stolen or damaged, which requires an understanding of loss limits and insurance coverage.

Standard operating procedures (SOP)—A managed warehouse service provider will have SOPs to address food safety and FSMA requirements for outside warehouses. Their network of storage providers will be trained on these SOPs to ensure the integrity of your products.

When warehousing is outside of a company’s core business, it makes it difficult to find the time, resources, and expertise to efficiently manage everything that goes into locating and managing outside storage networks. Enlisting the help of a managed warehouse service provider can allow companies to focus on their business, while saving time and reducing risk.

How Can Shippers Prepare For The ELD Mandate?

The Electronic Logging Device (ELD) mandate will take effect on December 18, 2017, and will require all truck drivers (unless exempt) to connect an ELD device to their truck engine to track their hours of service. To increase driver safety, drivers will not be able to drive over their allotted hours - 14 working hours, 11 driving hours a day, with 10 hours off in between shifts. This mandate will have a major impact on both drivers and shippers, which means driver efficiency will become a shared responsibility among all parties in the supply chain. 

From the shipper’s perspective, the ELD mandate could lead to reduced carrier productivity, driver shortages, and increased rates. Drivers may also refuse to work with facilities with extended wait times or charge more for going into difficult loading and unloading locations.

Longer wait times may turn into service failures for the shipper because product will not be delivered on time. This, coupled with capacity shortages, may force shippers to resort to expedited solutions or team drivers, which can cost 10-30% more than traditional solo transits. The ELD mandate will also result in drivers holding shippers to their appointment times or charging them if they are forced to wait. 

So how can shippers be more prepared to handle these challenges?

• Review appointment and lead times. Check with your carriers to make sure they will be on-time, and communicate with them when wait times are expected to be longer than normal. Additionally, provide carriers with enough lead time so that they can legally run the load.

• Preload trailers. Preloading trailers, and using drop and hook when possible, can save drivers nearly an hour compared to live loads.

• Be carrier friendly. Shippers should consider offering flexible appointment times and extending their hours of operation. In addition, providing safe overnight parking, or suggesting nearby parking can save drivers from eating into their hours of service while searching for a spot to park for their 10 hours off. 

• Improve staffing. Shippers should consider hiring additional staff during peak seasons. 

The ELD mandate will have a major impact on shippers, drivers, and many others within the supply chain. Actively seeking out ways to efficiently load and unload trailers and decreasing driver wait time will go a long way in lessening the inevitable challenges that will come with this mandate.