Okay, you have done all your homework and come to the conclusion that it makes sense to utilize a third party logistics company to supplement your warehousing or cold storage needs. If you are local to the area you may already know all the available dry and cold storage buildings or public warehousing providers (odds are they have contacted you on several occasions). In the case that you are unfamiliar with the local city, county or even state, below are three resources to aide you in locating a third party logistics and warehousing provider.
Realtors:
Commercial and Industrial Realtors know the open space that is available in their markets – whether they represent it or not. While realtors focus on leasing out space to companies to operate themselves, public warehousing providers often work with local and nationwide realtors to list open ambient and refrigerated warehousing space they have available. They can help you in finding anything from a 500,000 square foot dry warehouse in Wisconsin to 500 pallet positions in a multi-temperature cold storage facility in Jerome, Idaho.
Chamber of Commerce and Economic Development Organizations:
These local and statewide organizations are great resources when seeking out warehousing space. They not only will be able to assist you in locating a warehouse building or logistics provider, but depending on the size and scope of your project will have additional information on incentives from the city or state if you were to locate operations or distribution in their city or county.
Industry Associations:
Not sure what associations you belong to? Take a look at your own website – marketing loves to list associations and organizations your company belongs to. You might even belong to associations that you didn’t even know about. Take advantage of this great resource to find dry and refrigerated warehouse providers that already do business in your industry. A recommendation by a trusted association will take some of the legwork out your search for a qualified and professional logistics provider.
Madison, Wisconsin – The upcoming 2012 World Championship Cheese Contest marks the tenth year of a key partnership between Wisconsin Cheese Makers Association and WOW Logistics, Appleton, Wisconsin., Wisconsin Aging & Grading (WAG) Cheese Inc. in Little Chute, Wisconsin, and Preferred Transit Inc. in Monticello, Wisconsin. Together, these supplier partners store, sort and transport thousands of contest cheeses.
The 2012 World Championship Cheese Contest will be held March 5 – 7 at Monona Terrace in Madison, Wis. Entry forms and fees are due February 8 and entries are to be delivered to WOW Logistics by Friday, February 24.
"Without these key partners, quite simply, WCMA’s Championship Cheese Contests could not function,” said John Umhoefer, Executive Director, WCMA, “The Association is grateful for these reliable associates that make the Contests happen by their timeliness and attention to detail.”
Each year, cheese entries are shipped to the WOW Logistics cold storage facility where they are held in optimal conditions. WAG Cheese Inc. donates many hours sorting and labeling Contest entries. “This process is extremely important and can be challenging, considering we receive over 2,000 cheeses from all over the world,” added Umhoefer.
“The championship cheese contests are a great industry event,” said Ken Neumeier, President, Wisconsin Aging & Grading Cheese Inc., “and we are pleased to work with WOW and WCMA to make the Contests successful.”
“We’re proud to collaborate with the Wisconsin Cheese Makers Association for Championship Cheese Contests,” said Rick Schlapman, National Sales Manager for WOW Logistics. “The Contests have seen tremendous growth over the years, and we’re pleased to be able to provide the facilities for the cheese and butter entries.”
Preferred Transit of Monroe, Wis. provides transportation of the Contest entries to and from the cold storage to the contest site and also delivers the winning cheeses to the International Cheese Technology Exhibition. “Preferred Transit provides a vital service for the Championship Cheese Contests,” said Umhoefer. “Their dependable service is crucial as we’re managing a tight time frame and perishable product.”
Contest entrants are encouraged to utilize MyEntries, the personal, secure online entry worksite at www.worldchampioncheese.org. MyEntries users will receive a $10 per entry discount.
Source: News Release from the Wisconsin Cheese Makers Association
With a contribution from Jim Lehrke at Safety Connections we continue our discussion on forklift safety in a manufacturing or warehouse and cold storage environment and the impact it can have on your business. Last Friday and earlier this week we touched on speed limits, lighting, tires and ballasts. Finally we want to highlight warning devices and using caution in the presence of pedistrians.
Warning Devices
First things first, all forklift trucks must have a horn. The driver must monitor the direction of travel and use the horn to warn pedestrians who may be in his blind spots. A blind spot is by definition any place in the direction of travel which the driver cannot see without special effort.
The property use of the horn is an important part of the facility design. Some employers require the driver to honk as he begins to move; others isolate pedestrian hazard points at which to use the horn.
It is important to discover all environmental blind spots in the driver's path and evaluate the risk of each. A walk-through of the area reconstructing the field of view of the driver is necessary. You can then follow these simple steps.
-
When approaching an aisle, determine at what point the driver can first see an approaching pedestrian.
-
Next, determine the point at which he is likely to see the pedestrian.
-
Compute the desired speed in the area in feet per second. Multiply the measured speed by 1.5 (You may use 3 mph as a standard speed limit.)
-
Multiply the speed, measured in feet per second, by 1.75. This will provide a measure of the mechanical delay of the driver and the vehicle.
-
Add 1.3 feet for each mile per hour of your established speed limit.
Employers should not rely exclusively on the horn as a warning device. The nature of a forklift requires the driver to divide his attention. He carries his load while driving in reverse. He must simultaneously monitor the balance of his load at the back of the truck and watch the direction of travel. He drives with his left hand on the steering wheel and his right hand on the load control. He must monitor his blind spots. When he uses the horn, he automatically gives up some control.
The complexity of a driver's tasks makes the use of an automatic backup alarm system mandatory. The choice is not whether to use an automatic alarm, but which alarm to use. Factory representatives normally advise the user which alarm to install. If the facility is noisy, a flashing light may be best, otherwise an audible horn is adequate.
An employer should not trust the operation of a forklift to an employee with a bad driving record. A National Safety Council report recommends that an employer check driving records annually. It recommends an annual physical examination. No operation should drive a forklift without training. There is no excuse.
Pedestrian Islands
A number of pedestrians were hit by forklifts when they appeared suddenly in unexpected places. We carefully segregate automobiles and pedestrians in parking lots, but we forget to mark traffic patterns in the warehouses.
Any area where pedestrians and vehicles interact needs markings to show traffic patterns for pedestrians and vehicles. If a warehouse is large enough, mark stock storage areas, traffic areas, and pedestrian routes on the floor.
In summary, safety literature shows that the two leading causes of forklift accidents are:
(1) Workers struck by the forklift.
(2) A load dropped or shoved onto another employee.
Other causes include the driver catching part of his body between the truck and other objects, or driving off the loading dock.
In conclusion, most accident causes are discussed in existing forklift training courses, but little guidance exists to train employers about environmental design.
OSHA requires the development of safe operating rules. An employer can provide a safe environment by following simple steps. Post speed limits. Calculate and lay out the facility based upon vehicle and pedestrian movement patterns. Provide pedestrian zones to isolate the hazard. Install mirrors to give the forklift driver additional time to react. The operating surface must be smooth and unobstructed and the forklift must be selected for its expected use.
The choice is yours to prevent injuries before they happen.
At WOW Logistics the safety motto is 'Warehousing is our Business, Safety is our Priority'. We take our business very seriously, but we consider the health and well being of our employees to be our #1 priority. Building on Friday's post on forklift safety by Jim Lehrke of Safety Connections we want to continue with three more key areas that need to be addressed not only in training, but daily operation:
The Lighting
OSHA established a minimum standard for lighting in areas where forklifts operate. If the light level in an area is below 2 lumens per square foot, the truck must use auxiliary lights.
Forklift trucks normally carry their load in reverse, making auxiliary lighting a complex task. Two lumens per square foot equal 2 foot candles. The light in a warehouse measuring 2 candlepower is seriously substandard. All safety codes recommend a minimum light level of 20 foot candles in warehouses. This level of illumination should be adequate for older workers.
Tires
Many forklift trucks use hard rubber tires designed for concrete surfaces. Hard tire forklifts are inside trucks. They have no suspension, and the solid tires have no air cushion to absorb the shock from a defect in the working surface. If used on a rough surface, a hard tire truck will handle erratically.
If you use a solid tire forklift outside, the surface must be perfect and capable of supporting the load. If you use the forklift truck outside regularly, use a pneumatic tire forklift. The pneumatic tire spreads the load over a larger surface footprint and helps absorb the shock.
Forklift Ballast
Forklift trucks are like seesaws. The vehicle is safe when both ends of the seesaw are in balance. If the load is too heavy or if the ballast is too small the forklift truck will tip toward the heavy side. The seesaw analogy works to a point, but it is too simple.
Both steering and lateral stability are affected by the ballast of the truck. Any change in the ballast will alter vehicle stability in four directions and will make steering unpredictable. Sometimes the change in ballast causes the vehicle to under steer.
Users of electric forklifts face a specific temptation. They sometimes use lighter replacement batteries because they are cheap. Electric batteries often weight several thousand pounds and cost thousands of dollars. By installing a smaller battery, the user can save hundreds of dollars.
Operators often know that they are reducing the lifting capacity of the truck, but do not understand the danger. Their misunderstanding is often reinforced by battery dealers anxious to make a sale. A prudent buyer will get all dealer representations about replacement batteries in writing.
Stay tuned to Thursday's post as we wrap up forklift safety as we discuss warning devices and additional accident patterns that can occur in a warehousing facility if not properly addressed proactively.
Over the next week we are pleased to present great forklift safety tips from Jim Lehrke, Owner and CEO of Safety Connections, Inc. in Sheboygan, Wisconsin.
Forklift Safety
Most businesses I come across use lift trucks but don’t always realize the seriousness of what can and does happen within a split of a second and the experience is a lifetime of what we really don’t want to happen (an injury). There is overall a small percent of accidents that involve forklift trucks, but the forklift accidents produce a larger percent of the physical injuries. Forklift accidents are usually blamed on operator errors. After each accident, businesses hold a training session for the driver to reestablish safe operating practices. As many as one in four of these accidents are caused not by the driver but by controllable environmental factors. We can eliminate hazards and design a safe operating environment only when we understand the real cause of forklift incidents.
As most accidents are blamed on operator error, it is determined the adequacy of standard forklift training courses need for improvement. As the accidents appear serious, the result is an injury occurs.
Speed Limits
Regulating the speed limit of an industrial truck are an important part of the environment of the workplace. A forklift truck moving through a warehouse has tremendous momentum. Momentum is the mass of an object multiplied by its velocity. Mathematically, momentum is Weight x Speed x 1.5.
A lift truck cannot stop in an instant. There is information that shows it takes about 1.3 feet for each mile per hour for a panic stop. It takes 0.75 seconds for the operator to become aware of the existence of a hazard and another full second for the mechanical parts of the vehicle to respond.
A forklift truck moving at ten miles per hour may take 40 feet to stop. A rule of thumb, an operator should allow 40 feet between the truck and a person on foot. Since this is not practical, we reduce forklift speeds and establish operating rules.
It is my experience that the maximum speed limit allowable by a forklift truck is eight miles per hour. In areas where pedestrians are present, speed limits should not exceed three miles per hour.
Next week we will continue talking forklift safety including lighting, tires, warning devices and more.
You have done your research and know you are in need of additional warehousing space for your company but not sure where to look. How many times have you driven by an enormous distribution center and thought to yourself that you have no need for anything that size? “Space Available” the sign says? Well, I don’t need 500,000 square feet and what if I want to handle my products myself instead of utilizing their logistics services!
Public Warehouse facilities can be occupied by one or many customers at any given time. Whether the need is storing a couple pallets for a few days, one 50’ x 50’ bay for just a few months or an entire building over the course of ten years public warehouse facilities can be a great option for your company.
By utilizing a public warehouse you could have access to:
-
Short and/or Long Term Storage: Whether you need the space for a few days, a few months or a few years the flexibility of using an outside warehouse facility will allow you to grow your business without the constraints of four walls.
-
Value Added Logistics Services: Utilizing a public warehouse provides you the option to either manage the inventory yourself as a lease tenant or via a third party logistics provider. Need a product reworked, repackaged, or relabeled? A professional provider can take care of these pesky tasks for you.
-
Secure Facility: Knowing that your product is safe will let you sleep soundly at night and be sharp the next day to make those crucial business decisions that will elevate your company to the next status.
-
Rail Access: With the increasing congestion on our highways and regulations affecting truck drivers having access to rail to ship and receive your product is becoming a more utilized option by many companies.
-
Office Space: Many warehouse facilities offer office space that will accommodate various sizes from a single office unit to a multi-level corporate offices based on your needs and requirements.
So, the next time you drive by a 500,000 square foot or even 1 million square foot public warehouse facility that shows space available, don’t just look at the outside of building alone, but image the opportunities the space inside would create for your company.
Find your location and take a tour today!
So you have made the decision to outsource your storage and distribution to a third party logistics provider (3PL) - that was the easy part! You just burned the midnight oil and gave up weekends to gather your internal data, research warehousing companies, prepare an RFP, review each proposal that came back and coordinate the transition into the new warehouse. Third party logistics providers will tell you to leave it up to them as they are the experts. But just like in any partnership or marriage, each party can only succeed if both remain in constant communication about expectations, changing requirements, issues and concerns.
Experience tells us one of the most overlooked opportunities to improve processes is to openly communicate about the good and the not so good. Whether you are using a cold storage warehouse, fulfillment company or full service third party logistics provider, they may try to think one step ahead but they simply have not mastered the art of mind reading. But of course you can always ask them if they have!
Even as an experienced logistics expert, we cannot fix a process that we do not know is broken so it is crucial to keep both ends of the communication line open and active. In the world of logistics, process improvement is an ongoing and continuous strategy from both parties involved to eliminate inefficiencies.
If it is being able to get more trucks loaded, reducing damage, implement longer hours of operation, or driving out cost, by keeping an open dialogue you are more apt to find a solution together.
Gaining expertise from utilizing a third party logistics company.
A warehousing and logistics provider can be a strategic partner to a business. The difference between warehousing and distributing your products with one provider or another can be the determining factor in terms of whether or not you serve your customers correctly. It can also determine whether or not you might be able to win their business in the first place. The third party logistics provider or "3PL" as it is often referred to as, is able to develop value-added benefits that help to reduce your costs, drive efficiency, and allow you to focus on what you do best.
A fully unified warehousing and distribution strategy allows you to utilize an expert to manage your supply chain. A qualified third party logistics provider should be able to offer specific guidance on how you can most effectively develop and maintain your supply chain. The warehousing company or 3PL should provide flexible solutions that fit your company’s strategy and allow you all levels of information management within your business. Your logistics partner should deliver best-in-class process development to drive efficiency and cost reduction and have the fiscal sense to help you maximize your logistics costs.
Is it time to utilze a third party logistics company for your warehousing and distribution? Whether you need a cold storage warehouse in Wisconsin, logistics services in Idaho or international transportation management, this can be one of the biggest decisions a company can make, and also one of the most strategic.
Download "Is outsourcing the right choice for me and my business?" today find out if it is time for you to take the next step and contact a warehousing and logistics expert.
Outsourcing your warehousing and distribution function is a business decision and one never to be taken lightly or without research. The past two weeks we have identified two key strategic components to address when asking yourself "Is outsourcing the right decision for me and my company?" Now that we have talked about turning variable costs into fixed costs and flexibility it is time to turn our attention to...
Strategic Reason #3: Technology
Utilizing a third party logistics provider that has strong technological capabilities means you can level the playing field without investing hundreds of thousands of dollars in systems & IT infrastructure. Warehouse Management Systems (WMS), Transportation Management Systems (TMS), Radio Frequency Identification (RFID), and Electronic Data Interchange (EDI) can be provided by a 3PL to reinforce your business' ability to meet the needs of your customers. WMS and TMS capabilities can add value to your organization. These systems allow for real-time access to detailed inventory information. They provide you with comprehensive reporting information, receiving and shipping functionality, and inventory data through a Web-based interface. By utilizing these technologies you can leverage these system capabilities across your customer base directly, giving your company a competitive advantage in the market. A logistics provider should be able to integrate technologies such as RF and, where applicable, RFID to allow you additional supply chain visibility while also helping to lessen shrinkage costs.
Next week we round out our top four with...Strategic Reason #4: Expertise.
Don't want to wait till next week? Download Is outsourcing the right choice for my business now.
Last week we addressed the question of “Is outsourcing the right choice for me and my business”? We introduced the first of four strategic advantages that are gained by outsourcing your warehousing and logistics function to a third party logistics provider – Turning Fixed Costs into Variable Costs.
Still not sure if outsourcing is the right direction? 
Here is Strategic Reason #2: Flexibility
Third Party Logistics (3PL) providers allow you the flexibility to set up and scale a distribution model as required by your specific business needs.
By decentralizing distribution you can:
-
Offset transportation cost increases due to rising fuel prices or other economic factors
-
Grow into new markets that allow you to service new customers
-
Have more flexibility with on-hand inventory levels
By not having to justify the cost of filling an entire building, you are able to maintain more appropriate levels of stock and replenish on an as-needed basis. This will allow you to more accurately account for inventory fluctuations due to demand or seasonality. In addition, a 3PL can provide a lower cost solution for consolidation of trucking and inventory. By storing your inventory with a third party warehouse provider, you allow for multiple shipments to be shipped in a more cost effective manner.
Next week...Strategic Reason #3 –Information Technology (IT) Solutions
Don't want to wait till next week? Download Is outsourcing the right choice for my business now.