MAKING THE RIGHT CHOICE FOR YOUR WAREHOUSING AND DISTRIBUTION IN ALBERTA
It’s essential that your logistics partner understands your critical KPIs. It’s standard practice for FMi to work with our customers and ensure that synergy exists between our execution of your business needs and alignment to meet your critical objectives. It’s true that every business is different, but there is generally a consistent set of performance indicators that apply to all. Taking the time to ensure these are clearly understood is critical to all of our successes.
Pricing structure—this is another key piece of the puzzle. Many options exist for types of charges, how and when they are recognized and levied. Generally, the cost structure looks like this:
·a fee for storage services (both the receiving of new inventory and the monthly charge for keeping it on hand)
a fee for the handling activity (usually charged when the product is received and again when it is shipped out)
· an administrative cost per transaction or per ‘period’ or per ‘volume’ of transactions (often requested by customers to be separate for transparency, although many customers don’t wish to see it and it becomes buried inside of the other charge items)
Labour beyond the normal handling rates for inventory is usually a known rate, although not a regular cost except where extra services may be required such as an annual inventory count or a non-typical breakdown or examination of your product is needed. Options such as fixed retained square footage area, or alternatively, a floating arrangement based on your activity into and out of a facility for storage charges are but two of the options
While opting for an outsourced logistics solution may seem like an obvious time-saving and money-saving choice for your business, choosing the right provider is not always as obvious. If you’re considering outsourcing your warehousing and distribution in Alberta or beyond, talk to the friendly and knowledgeable team at FMi Logistics. Call us today.