A: An outsourced service provided by a company that specializes in transporting, warehousing and scheduling of the delivery of goods owned by others. The 3PL provider takes physical possession of goods to be delivered, arranges the appropriate delivery method or mode of transportation, then schedules and handles all operational tasks associated with the delivery process. These services may be provided on a one-time or ongoing basis.

A: Warehousing Services are typically charged on a direct usage basis without any long-term commitment on part of either warehouse user or provider. Categories of charges generally pertain to space usage, warehouse labor hour's and clerical charges.

Before we quote on a specific project, we gather all relevant information as provided by the customer to enable us to translate the project into anticipated space needs and labor requirements. Quoted rates are then predicated on such parameters and are typically structured on a per unit basis such as "per pallet", "per lb" or "per case". The unit of measure might be stipulated by the client as to conform to their systems. The obvious preference will be to charge on the same unit of measure as is being used to track inventory and activity.

When little if any information is available about a given project, we simply quote on a square foot and per labor hour basis. Such a rate structure takes risk and assumptions out of the equation. We keep track of labor hours and measure space and are able to account for it. A square foot storage rate is sometimes also used for large pieces of business where the foot print does not vary much month-to-month and where through put is not predictable.

Storage charges can be quoted in several formats: (1) flat monthly storage per unit of measure (UOM), (2) split-month storage per UOM (see detailed explanation below), (3) anniversary storage per UOM or (4) flat monthly rate per square foot. Of these, Option 2 is the most commonly used method in the public warehouse (multi-client per facility) arena.

Handling charges are generally invoked upon receipt of inbound product. Although labor hours are incurred both for the inbound as well as for the outbound movement of product.

Clerical charges are frequently identified as an "Order Processing" or "Bill of Lading" charge. These cover the costs not only of order processing but also of receiving the inventory, customer communication and reporting.

Cross-dock charges are often simplified and bundled into a single flat rate which covers all expected labor, dock-space and clerical work. Some clients request a simplified rate structure and such requests can usually be satisfied. Our inherent preference is to charge for services as they are incurred and in a transparent, accountable manner so long as the tracking of related activities does not become excessive.

Value-added services are quoted in a number of ways. Typically, the rate will be on a UOM basis predicated on some agreed-to assumptions regarding productivity and volume parameters.

A: We do not have minimum charges.

A: Our hours of operation are facility and client specific. Our default hours for a single shift operation are from 8:00 a.m. to 4:30 p.m. The office and management will always be available until 4:30 p.m. At the same time, we can serve some customers with a second shift and on weekends. Of course, specific hours of operations requirements are best addressed in advance and structured as to make it most cost-efficient.

When a customer has an urgent service requirement, our team is available to be there to serve the need even when it was not possible to plan in advance expanded hours of service.

A: The public warehousing agreement is a month-to-month contract as governed by the Uniform Commercial Code, Section VII. While many warehouse users have long-term relationships with their warehouse providers, the public warehousing platform provides great flexibility in the event of major changes. Long-time users of public warehousing services view it as a strategic advantage. This relationship works particularly well when there is no need for major capital investment. Generally, when a significant capital expenditure is required, the warehouse user and provider will enter into a warehousing contract whereby the expense can be amortized over the period of the contract.

A: This essential public warehousing insurance coverage is frequently misunderstood. To begin with, it must be understood that the warehouse operator does not hold title to the goods. The party which holds title to the goods needs to maintain primary insurance coverage because according to the IWLA promulgated Terms and Conditions "the warehouse shall not be liable for loss or damage to goods tendered, stored or handled however caused unless such loss or damage resulted from the failure by warehouse to exercise such care in regard to them as a reasonably careful person would exercise under like circumstances..."

Thus, the warehouseman's legal liability insurance covers the warehouse from claims in the event that the warehouse failed to exercise such duty of care as described in the Terms and Conditions. This is one policy in which the client should never request to be named as co-insured because it would in effect nullify the coverage since you cannot cover yourself for a claim by yourself.

A: LD uses the Standard Contract Terms and Conditions for Merchandise Warehouses which have been approved and promulgated by American Warehouse Association, October 1968; revised and promulgated by International Warehouse Logistics Association, January 1998 and November 2008. Click here for the full text.

A: Yes, we do.

A: Yes, indeed, we always accommodate our clients' customers if they wish to pick up their order rather than it being delivered to them. We view this as an important service as a direct extension to our clients' customer service.

The important thing about customer pick-ups (a.k.a. Will Calls) is that the order needs to be released for shipment by the client prior to the arrival of the customer so that the order can be picked and staged on the dock for a pickup without delays.

A: This is a popular method of charging for storage whereby pallets arriving in the first half of the month incur the full monthly storage rate, pallets arriving in the second half of the month incur half of that storage rate and pallets on-hand at the beginning of the month incur the full monthly storage rate.

Such storage rates are invariable predicated on an expected average inventory turn ratio. Essentially the warehouse rewards the depositor (client) with a lower storage rate in return for an on-going through-put of inventory which generated additional handling revenue for the warehouse. By comparison, a flat storage rate is not predicated on inventory turn.

A: The term Third-Party Logistics (3PL) describes a company which may offer a great array of logistics related services. Public Warehousing is one of these along with value-added services such as packaging, fulfillment, transportation, IT services and customized services. The largest 3PLs are global enterprises whereas smaller 3PLs may be regional players or even single-city providers.

Many organizations which formerly were identified as public warehouses frequently assume the new terminology as their services have expanded and diversified.

A: Most companies that have daily needs, or infrequent needs, for the delivery of their products can benefit from third party logistics. We routinely work with companies that manufacture or distribute furniture, self tanning products, paint, building supplies, packaged goods, produce and industrial supplies.

A: We service the entire west coast with a focus on California, but we have partners throughout the United States.

A: Yes. As experts in transporting and warehousing we operate efficiently and assume the administrative as well as the physical roles of delivery. By providing a reliable service, with fixed costs and knowing how to obtain the lowest costs for delivery we routinely lower our client's delivery costs.

A: The more information you can give the 3PL, the more accurate your quote will be.
Here is a list of what you will need;

•A general description of what you want the 3PL to do and what your goal is in outsourcing.
•A description of your product. (sizes, weights, special handling and storage requirements).
•How the product will come in: palletized, floor-loaded, truckload, LTL, small package.
•Number of stock keeping units (SKU’s).
•How the product will go out: truckload, LTL, small package, customer pickup, etc
•Characteristics of the outbound shipment: number of pieces, number of sku’s.
•Number of inventory turns.
•Projected volume.

A: 3PL’s have two things to sell: labor (handling) and space (storage).

A: When optimizing your supply chain, you need to understand the true cycle times of all processes. Here are a few of the cycle times you should consider in your supply chain;

Supply Chain Cycle Time
The total time required to satisfy a customer order if all inventory levels were zero. To calculate, add up the longest lead times in each stage of the cycle.

Inventory Replenishment Cycle Time
Measure of the manufacturing cycle time plus the time included to deploy the product to the customer or to stock.

Customer Order Promised Cycle Time
The expected cycle time of a purchase order is the gap between the purchase order creation date and the requested delivery date.

Customer Order Actual Cycle Time
The average time it takes to actually fill a customer’s purchase order. This measure can be viewed on an order or an order line level. The measure starts when the customers order is sent/received/entered. It is measured along its various steps of the order cycle. Through credit checks, pricing, warehouse picking and shipping. The measure ends at either the time of shipment or at the time of delivery to the customer.

Manufacturing Cycle Time
Measured from the firm planned order until the final production is reported, it usually takes into account the original planned production quantity versus the actual production quantity.

Purchase Order Cycle Time
Measure of time from the creation of the PO to the receipt at the customer location provides the PO Cycle Time.

A: Inventory Turns are the number of times that a company’s inventory cycles or turns over per year. It is one of the most commonly used supply chain metrics.

Calculation: Divide the Annual Cost of Sales by the Average Inventory Level.

Example:

Cost of Sales = $30,000,000.
Average Inventory = $5,000,000.
$30,000,000 / $5,000,000 = 6 Inventory Turns

Turns can be viewed using cost value or even in units. Although results vary by industry, typical manufacturing companies may have 6 inventory turns per year. High volume, Vendor Managed Inventories may have 15+ turns depending on cycle times between replacement shipments.

A: Yes. Our systems allow our clients to view their inventory and orders online through the LD website.

A: Yes – too many to list here. We have many customers with unique needs. We pride ourselves on being able to offer custom programs to meet your needs and lower your logistics costs.