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Business · October 18, 2019

How To Choose A Good Warehousing Company

The popularity of companies offering logistics and warehousing has encouraged a number of companies to offer the same services. But there is always a certain degree of difference in the services offered. Hence when deciding to partner with a warehousing company, one needs to keep the below-given points in mind. These points pertain to:

  • Insurance offered: There is an element of risk involved in placing materials, goods and equipments in the care of 3PL companies in India. These risks pertain to theft or the goods, damages incurred by them due to fire, natural calamities, mishandling etc. Thus it is very important to check out the insurance that is provided by them. Selecting a warehousing service which offers protection against all kinds of loss or damage always works in favour of the company or manufacturer.
  • Lease signed: When a company or manufacturer utilises the services of a warehousing services company, it is mandatory for a MoU or contracts to be signed. This contract has to be legally binding on both the parties. Hence care should be taken to make sure that the contract ensures flexibility of terms and is realistic to the needs of the manufacturer.
  • Rates and costs: The rates should always be asked for beforehand. In fact, the manufacturer should enquire about all different types of rates that are generally applicable like:
    • Warehouse rental,
    • Transportation,
    • Cross-docking, if required,
    • Picking, packing and delivering costs etc.

By talking clearly about the costs that are applicable and the terms of service that they are offering, a manufacturer gets to ensure that hidden costs do not crop up later. Thus all rates and prices need to be specifically mentioned in the contract signed.

  • Warehouse location: This needs to be taken into consideration since:
    • If not suitable located at a safe distance, the transportation costs could increase and so will the overheads for the manufacturer and
    • Also if they do not have a pan India presence then it becomes difficult for companies having multiple branches in different cities to operate.

Types of warehouses

Of course before making the final selection for warehousing companies in India, one needs to understand that there are three types of warehouses which are currently in operation in India. They are:

  • Private warehouses: These are generally owned by the biggest manufacturers in the country and are self-operated and used to fulfil their needs only. Since the costs involved in the construction and maintenance of these private warehouses is very high, only the very big business firms can own and operate them.
  • Public warehouses: They are specialised establishments which offer storage facilities to anyone who can afford them. These are either owned or operated by individuals, companies, co-operative societies or state or central government. They need to obtain a license and follow the rules and regulations set by the Government of India in this regard.
  • Bonded warehouses: These are exclusively licensed to accept and keep imported goods by the Indian government. They are generally situated near airports and ports and are either operated by the government itself or by custom authorities.

Top warehousing companies in India

Keeping the above factors in mind, selecting the top warehousing companies in India becomes easy and those included in the list are:

  • Central warehousing corporation which is a government of India run autonomous organisation,
  • VRL Logistics Ltd which holds the record for the highest freighter vehicles in possession of a single company,
  • Gati-KWE is a joint venture of Gati and the Japanese warehousing and freight major, the Kintetsu world express,
  • Transport Corporation of India or TCI is the leading company in India for integrated multi-modal logistics and for providing supply chain solutions,
  • Kerala state warehousing corp. is a statutory corp. of the Government of Kerala etc.

There are many other companies which also offer good warehousing facilities. Thus it is very important for the manufacturer to spend time and research for the same before making the final selection.