What is Contract Warehousing
A contract warehouse is a third-party logistics (3PL) storage facility that stores goods on behalf of a client. The client and the warehouse enter into a contract, which can range from months to years. The agreement may have a fixed fee structure or operate on a cost-plus model.
Advantages of Contract Warehousing
- Lower Costs and Capital Investments…
- Locked-in Service Period…
- Reliability…
- Extra Flexibility…
- Scalability…
- Strategic Locations…
- A Warehouse Management System.
