Selecting a 3pl for your warehousing needs can be a challenge if you do not remain focused on your requisites. Looking for S.A.L.T ( Space, Accuracy, Labor,Throughput). is a great way to remember what you need in a distribution center, in addition to enabling you to effectively analyze a current distribution center for improvements. Changes to be made such as transitioning from a manual material handling design to an automated one are examples of what you can reveal through our favorite acronym!
Space. Logistics matter: strategic locations and sheer space is important when choosing your distribution center. While weighing your options, understand your current need and potential growth. Examine your numbers closely, pay attention to market demand, and then proceed accordingly. Facility space utilization is a proponent to distribution performance. A benefit to using a 3pl is that it allows flexibility with market ups and downs thanks to decentralized distribution centers, which can provide you the ability to grow in new regions.
Accuracy. Understand the system that your potential 3pl logistics company has in place for accurate inventory management. Communicating the execution of such systems can prepare you for what to expect in inventory tracking and ordering accuracy. 3pls should be aware of the latest developments in technology, and will be able to explain their system in detail. A benefit of using a 3pl should include access to the latest resources available!
Labor. Always inquire about labor management strategies, and consider every piece when engaging in the topic. From labor costs, management, productivity and output, to even customer satisfaction, fully evaluating how your product is assembled and distributed matters. Take the time to learn how your business will be processed and the manpower that is involved. Considering and projecting this process in advance will save you time and money by eliminating any issues beforehand.
Throughput. Lastly, focus on your throughput. Thinking about how this correlates to space, accuracy and labor will tie your decision together. 3pls are designed to ensure your needs are met cost effectively and quickly, but success with a 3pl will fall on throughput! If everything aligns, S.A.L.T. should make choosing your warehouse foolproof.