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Contracting a Third Party Logistics Location

Contracting a Third Party Logistics Company

There are several steps to follow before renting storage space and contracting a 3PL. If this rental and/ or contractual agreement are made” spur of the moment”, then the end result may not be a successful one. So, it is important to carefully investigate, examine, and contact references to make certain that the public warehouse that one chooses is best adapted to the needs of the business. It is essential to make sure that the warehouse is adequately bonded and insured, in the case that any type of mishap occurs. It is also imperative to examine the aspects of shipping and the location in relation to the transport methods that would normally be used.

First, a business should check the warehouses in close proximity to their customers and/ or need s. Each facility should be contacted by phone and then interviewed either in person or via telephone interview. After this is accomplished, the staff appointed in making the decision as to the public warehouse chosen should meet and weigh all factors, thus selecting the best facility. Next the warehouse facility will list their responsibilities to the business, and all concerns should be aired. When these factors are agreed upon, the contract can be drawn up and signed. Much of the time the business elects to take the contract to its lawyer to make sure that this agreement is in the best interests of the business. After alterations are made or consent is granted, the contract can be signed by both parties. There is usually a security deposit that is due, depending upon the amount body space that is being rented and the amount of inventory involved. The more space and/ inventory, the more costly the security deposit. The payment may vary depending whether the business is renting the warehouse for a short term or long term. If short term, the payments are usually due on a monthly basis, however longer terms may be required on a semiannual or even an annual schedule.

Although there is a contract between the parties, their relationship should be an amicable one. All parties involved are seeking the same goal, one that shows profits, success, and positive end results for the business and satisfies the wants, concerns, and needs of the customers involved. If these goals are met, the business will not hesitate to contract the same warehouse the following year.

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