For companies that don’t need or can’t afford to build their own warehouse but need reliable storage options for raw materials and finished goods, leasing managed warehouse space can be an attractive alternative. The options, however, are often overwhelming. Knowing what to prioritize and what questions to ask can help identify whether a warehouse solution will meet the needs of your business.
Investing in warehouse services is a big decision that requires research, preparation, and most importantly, informed professionals to guide you through the process. The warehouse team at Shaker Logistics manages over 50,000 square feet of space at our headquarters in Waterford, NY. John Cammarene, Shaker’s Director of Safety & Compliance, and Mark Mantica, our Warehouse & Facility Maintenance Lead, share tips for buyers.
Know Your Freight
A solid assessment of a potential warehousing partner should begin with an open conversation about the freight that will be stored. At Shaker, we use a freight questionnaire to kick off the process and determine if our services are a fit. This helps us understand the nature of the freight, from its dimensions and pallet configuration to the critical factors that impact the customer, like shipping lead time or special handling concerns.
“As a warehousing provider, we need to know if we have the capabilities to store and manage your freight, which is why the initial questionnaire is so important,” said Mark Mantica, Shaker’s Warehouse & Facility Maintenance Lead. “Identifying the services you might need gives us a better idea of how we can help. We often work with customers to complete the questionnaire together, going over any warehouse jargon and asking them about their freight and how we can accommodate it,” he said.
For a more efficient warehouse shopping experience, buyers should familiarize themselves with their freight and related logistics needs ahead of time. The main things to know are:
Storage timelines
Short-term storage may be best suited for shippers who need a place for surplus inventory during a project or period of high demand. Long-term storage, typically a year or longer, is a good option for businesses that are in the process of moving or expanding.
Commodity specifications
Warehousing teams need to know if they have the means to store your product. Is it oversized or over-height? Does it need to be stored on the floor, or can it be stacked, or placed on racks? Should the freight be kept at a specific temperature? Does the space need to meet hazmat or food-grade qualifications?
Transportation solutions
What goes into the warehouse must (eventually) come out. If your business is expanding, you may need dedicated straight trucks to bring the stored freight to your newly constructed location. If you are using a warehouse to store surplus products made for the holiday rush, you might utilize LTL services to bring the freight to multiple customer locations over a period of months.
Oftentimes, warehouses will have transportation solutions available at their facility for customers to use when the time comes. Shaker’s own warehouse offers fleet transportation as well as a brokerage located in the same building, so you have access to custom transportation options at any time.
Tour the Space
John Cammarene, Shaker’s Director of Safety and Compliance, emphasizes how important it is to tour potential warehouse spaces. “You can tell a lot about the service you will get just by walking through the facility. The condition of the warehouse is a good indicator of how much time the team spends making sure the freight is accounted for and in good condition. It’s too easy to get caught up on pricing while you’re touring a warehouse, and you can miss signs of good service. Pricing can always be negotiated, but the quality of the space and service come as they are, so pay close attention.”
When you’re touring a warehouse, take note of the following:
Location
You can save on transportation costs by investing in warehouse space that is strategically located near your business interests. You might benefit from storage located near your facility or factory. On the other hand, if you plan to distribute products to customers at several locations it’s beneficial to use warehouse space located in cities where carriers frequently come in and out.
Organizational skills
A well-run operation makes cleanliness a priority. The warehouse itself should be clean, and free of spills and debris that could damage the freight and equipment. Keep an eye out for leaky ceilings, doors that don’t shut properly, or damaged flooring. If there’s racking, it should be organized and structurally sound to properly store products. Ask to see warehouse equipment such as forklifts and pallet jacks to make sure they appear well maintained. A rusted forklift won’t be able to safely lift your freight and could potentially cause damage.
Specializations
Some warehouse facilities are equipped to store specialized freight. When touring, ask if the space is certified to hold hazmat or food-grade items, or if there are temperature control options for particularly sensitive freight.
Security
Your freight is valuable, and you’ll want a logistics partner you can trust to keep it safe during storage. Ask about security measures the team takes in the warehouse – who has access, where the cameras are, if there is security on staff. Shaker’s warehouse has badged doors with restricted access so only cleared team members can access freight for inventory and loading, with 21 security cameras that are monitored around the clock.
Visibility
Consider the software that a warehouse uses to keep and track inventory. In today’s age most, if not all, warehouses use a digital system for inventory and have the capabilities to provide shippers with up-to-the-minute inventory updates. Teams may provide regularly scheduled email updates, or you may have to request them.
Pricing Need-to-Knows
When it comes time to discuss pricing, flexibility, and transparency are key. The cheapest rate can often cost more in the long run if service is lacking.
While it’s true that larger logistics partners sometimes have cheaper warehouse rates, it comes at the cost of service. John has often discussed warehouse operation size with Shaker’s customers: “Bigger companies will see you as just a number, and any special consideration for your product gets lost in an ocean of other freight. With smaller operations there’s more opportunity for relationships and long-term sustainability. We know our customers well, and we have the capacity to give special attention to their freight if that’s what they want. We have customers who want monthly inventory updates via email, and other customers who like to drop in to check on their freight. We can accommodate both and stay flexible, so our customers feel safe leaving their freight with us.”
Along with the size of the operation, there are other factors that impact pricing in warehouses. Generally, rates are priced per pallet depending on the services you require and the space your freight occupies. Some pricing practices to be aware of are:
- Oversized freight tends to cost more because it takes up more space and may require specialized equipment to move around the warehouse and onto a truck.
- Floor locations also have higher rates, as you’re paying for the vertical space the warehouse forfeits by storing an item that can’t be racked or stacked.
- Short-term storage rates can be higher, especially if the freight is being handled more frequently within that period. Each time freight is moved with the forklift to be repackaged and shipped out, shippers are paying for that labor.
Entrust your freight to Shaker Logistics
Above all, it’s important that you work with a logistics partner you can trust with all your warehouse and transportation needs. Shaker Logistics has space available for your freight in Waterford, NY. Contact us for inventive warehouse and transportation solutions today!