A warehouse tour is a MUST for any retailer looking to outsource fulfillment.
The on-site tour will help you understand what happens from when your product hits the receiving dock until it’s on the carrier’s truck. And you’ll get that valuable personal interaction with the people who manage your merchandise.
You’ll no doubt come prepared with a list of questions for the fulfillment vendor you are evaluating, but what should you pay extra attention to? We’ve compiled a list of 5 key areas:
Organization
Organization is a pretty broad category, including the general layout of the warehouse and tidiness. But, there are a few specific areas that you will want to pay extra attention to.
- Product arrangement: How will your products fit into this space? Does each retailer have a dedicated footprint, or are the products mingled with other merchants’ inventory?
- Clutter: Clutter is a bad sign. Are the products/boxes neatly stacked? Or are there boxes and pallets all over the place?
A well-organized warehouse means inventory is less likely to be lost, and replenishment can be done more efficiently, making pick/pack processes less costly.
Technology
The use of technology is vital in any warehouse. Notice how the warehouse staff uses technology to track your inventory, pick and replenish products, and prepare for outbound shipping.
Technology provides the fulfillment provider greater efficiencies while giving you and your team greater insight into your business.
Picking Process
To the untrained eye, the inner workings of the warehouse may seem slightly chaotic. If you watch closely, you’ll soon see a process. The picking process may vary by warehouse and by each business being fulfilled within the warehouse.
The options range from a highly automated process to manual. There’s no “right way” to pick. It’s typically based on product profiles and the best procedures for each retailer’s requirements.
Density
How well is the fulfillment provider using their space? Your inventory should be closely stored to reduce your warehouse footprint.
Look for picking locations that are engineered to allow pickers to walk and pass easily but not so spread out. You want to make sure you’re not losing efficiencies.
People
You’re meeting the people that could very well be representing your brand – from the people driving the forklifts to the managers taking part in your tour. More than likely, you’ll have some interaction with or an opportunity to meet:
- The material handlers – pickers, packers, receivers, stockers, assemblers, and returns staff.
- Inventory clerk
- Warehouse supervisors
- Operations/Warehouse Managers
- Safety Manager
Do they appear confident about what they are doing? How is the overall vibe?
Warehouse tours are part of the final phase of the evaluation criteria. They will help you better understand what happens to your product while it’s at the fulfillment provider’s facility.