Warehouse Call Center Operations

Warehousing companies offer more services than just storing product. An extension of the warehouse service for many companies is the customer service center. The warehouse service will hire and train the personnel to handle your product line. The training typically includes product knowledge, up selling related products, answering questions, taking orders, and handling returns or issues.

Questions to ask when interviewing a warehouse about their customer service center:

• What is the turnover rate of their call center personnel? High turnover is usually indicative of some issue in being able to provide a high standard of service to the company, because of staffing issues.
• What does the training involve? Do they offer classroom instruction as well as a shadowing program?
• How long is the individual observed, before they are left on his or her own?
  

One of the best ways to find out how the call center operates is to observe the call center in action. Visit the facility and listen to the staff while they are handling phone calls.

What to observe:

• Are the calls answered in a positive and timely manner?
• Do the employees have good product knowledge?
• How well do they up sell related products?
  

This service can be a great way to gain the call center staffing needed without forking out the expense of purchasing computer equipment, location, and hiring staff. The nice thing for you is that you do not have to deal with the capital expenditure or training.

Sources
International Warehouse Logistics Association
Warehouse Education and Research Council

Temperature Controlled Warehousing Is Important to Product Integrity

Consumers do not typically purchase overly ripe or moldy fruit and vegetables, so choosing a warehouse that can accommodate the storage needs of your products is invaluable. A few degrees off and you are stuck with a bunch of produce that is most suitable for a compost heap.

A good warehousing center is aware and takes proactive measure to maintain the integrity of the products by maintaining the proper ambient temperature. This will include humidity, air circulation, as well as temperature for each individual product.

To prevent mold, the warehouse must have a good system that will circulate the air to avoid spoilage. Many warehouses will have individual climate controlled coolers, so they can maintain the proper climate to extend the life of the product.

Make sure to speak to the service about whether they partake in the practice of alternative cooling. This is the practice of lowering temperatures during peak power pricing then increasing the temperatures when electrical power prices are lower during the day. Although, this may be fine for some products, you will want to make sure that this practice does not have any adverse affect on your product line.

Just as important is the proper refrigeration during transportation. Make sure not to break the cold chain, so that the produce does not lose its integrity and shelf life is not shortened. Check out the Global Cold Chain Directory for some good sources.

Sources
Cold Chain
Refrigerated Freight

Keeping Accurate Warehouse Inventory

- Ideals of an organization must start at the top. Make accuracy one of the ideal attributes for the company. Maintaining accurate records is mandatory in order to run a successful warehouse.

- There are many areas in the warehouse to improve efficiency. Establish checklists for integral processes. In addition, have employees and managers work together to double check that procedures are done properly.

- Employee training is extremely important. Even seasoned employees need additional training or refresher courses to keep their minds sharp. New employees should be paired with those with experience for a few months. This will expedite the a new employee's learning of their job and strengthen potential managerial skills of older employees.

- Establish standards for your warehouse. Standards set the pace for production and let employees know what is expected from their performance.

- Each employee needs to be accountable for their work. Many warehouses have checklists that must be signed by employees ensuring that work and proper safety precautions was performed. Documentation makes it easier to track employee progress and to use as a basis for promotions or terminations.

- All decisions and procedures should be reevaluated on a monthly basis. Some theories do not materialize well. It is necessary to examine what systems work best in each particular warehouse.

Sources
Inventory Management Talk
US Small Business Administration

Starting a product-based business

- Analyze the market. A good idea may not always materialize well once it hits the market. A company needs to look at direct and indirect competitors. It is not enough to have a great product, the product needs to be able to impact the market and influence consumers to buy.

- Study your target market. Each product should have a target market. A company needs to study the buying behaviors of their targets. The behaviors of consumers can impact decisions regarding packaging, price, availability, marketing, etc.

- An intended business needs to survey its circumstances before deciding how to establish itself. A one person business can begin as a sole proprietorship. A business with a few people can become a partnership, LLC, or corporation. The structure of the business can determine other decisions.

- Many businesses underestimate the amount of capital needed to begin. There are sources to acquire additional funding, but a business needs to decide what source is best. Recruiting investors may mean executive decisions be shared with them. Funding from other sources may mean high interest rates regardless of the initial success of the business.

- Consider outsourcing for many duties in the beginning. Outsourcing to professionals enables a business to run smoothly (especially in the beginning stages), while initial executive decisions are being made and modified.

- Marketing is very important in the beginning of a product's life cycle. A new product has a great chance of making an impact, but can be overlooked by consumers unless an efficient marketing campaign is established. Consider using a marketing company that has experience in the product's particular industry.

- Writing a business plan serves several functions. It helps the executives see the objectives and goals of the business in black and white. In addition, potential investors may want to see an established plan before considering spending their money.

- A business needs to become acquainted with rules and regulations regarding their practice. Depending on the business and its location, laws pertaining to zoning, licenses, practices, etc. may apply.

- A business needs to be insured. Consult a lawyer in regards to the level of insurance needed for the practice. Also, be aware of the tendency of some businesses paying too much for insurance. Know how much insurance is needed and what is covered under your specific account.

- Begin to establish literature about your company and product. Contact papers and magazines in your industry in order to make an impact on the press. Get business cards, brochures, and other marketing materials produced and dispersed.

Sources

IRS
US Small Business Administration

Reduce Warehouse Costs

- Some costs are only estimated. Get a better idea of how much money is spent by closely analyzing the cost of freight, duty, brokerage, and carrying. Finding an approximate price can help a business determine if it is worth trading overseas or to think about using domestic resources.

- Some businesses attempt to time their received shipments in order to save money. This can lead to other issues such as making customers wait for their shipment, a lack or surplus of product, and inconsistent records. Determine whether it is worth receiving shipments at consistent intervals regardless of the cost. It may help a business save money overall.

- Watch out for shipments that contain less than a full load. Some suppliers may charge per container. If the supply chain involves several stops before its final destination to a business' warehouse, check to see if consolidating loads from different locations is a possibility in order to save more money.

- Keep excellent records on a daily basis. Inform decision makers of the daily costs regarding shipping and warehouse costs. Letting people know about the data can improve the choices being made on a daily to weekly basis.

- Many businesses get charged carrier's insurance. Most businesses are self-insured, so it is beneficial to see if goods are covered under their own insurance in order to avoid paying the extra carrier cost.

- Express shipping is expensive. This level of shipping is employed when a warehouse is in immediate need of goods. This extra cost can be avoided by closely analyzing company data. A business needs to know how much product is needed on site on a daily basis. Few businesses should be in need of express shipping on a regular basis.

- A warehouse needs to compare the costs of shipping and receiving by land, air, and sea. Depending on times and the bulk of shipment, a business can save money by employing all three modes of transportation.

Saving on Shipping

Rising fuel costs has become a major business issue. For those using warehouses as part of their business plan, fuel costs cannot be avoided, but shipping costs can. The following post provides information and suggestions for saving on shipping.

- Use a business credit card for shipping costs. Many carriers and credit card companies offer discounts for usage. Some credit companies have deals established with carriers; discounts are available when particular carrier companies are used. In addition, using a business credit card can help in acquiring points that can be used towards equipment, traveling, other services, etc.

- Consider using electronic postage. Considerable price reductions are available for individual and bulk shipping.

- Use multiple, smaller warehouses to store goods. Some businesses may have a high concentration of customers in particular locations. Storing goods close to the customer can save a company money on shipping costs.

- Receive quotes from several sources. Get prices from at least three separate warehouses. Different warehouses may offer more services. A discount in shipping may apply to a company that gives a warehouse a good deal of business.

- Consider joining a business or trade organization. Some organizations offer shipping discounts to members.

- Plan your business carefully. Last-minute shipping costs can be drastically higher when compared to those with a two to three day time cushion.

- Get the most out of every shipment. Some suggest that you should not send out a shipment unless the truck is more than eighty-five percent full. This can be helped by making customers pay more for overnight shipping or pay less if they can wait up to five business days for their goods.

- Negotiate with suppliers and middlemen. Sometimes other business entities could share the costs with you or help save money.

Advantages of using Refrigerated Warehouses

Many industries have a need for low-temperature warehouses. As outsourcing becomes more popular in business-to-business commerce, companies have found using public refrigerated warehousing advantageous. Consider the following benefits.

- Outsourcing saves resources and enables a business to devote money and manpower to other areas such as marketing, research, and development.

- Public refrigerated warehouses employ professionals with specialized training. They are learned about proper freezing, thawing, and tempering techniques in regards to all foods and commodities.

- Refrigerated warehouses supplement the knowledge of their workers with advanced computer technology. Telecommunication capabilities make it easy to exchange data with customer computers. Transaction and analysis data is provided to ensure a more beneficial relationship.

- Refrigerated warehouses use advanced methods of transportation. This makes it more economical and convenient for customers to transfer food on a smaller and regular basis. Flexibility makes it easier for clients to compete with their competitors.

- Refrigerated warehouses do not segment their business structure. They concentrate on one area of service. Facilities are perfected, costs are monitored and controlled, and avenues to augment their services further are explored.

World Food Logistics Organization