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With so many companies moving manufacturing overseas, operating an in-house warehousing network is complicated. As a result, public warehousing is becoming an increasingly attractive and common supply chain practice. Because public warehousing arrangements tend to be brief, it's tempting to choose a public warehouse based solely on what it can do for you today. Whether your ideal public warehousing location winds up being in Atlanta, Chicago, Los Angeles, or somewhere in between, make transportation access a site selection priority. Sometimes something looks good on paper but doesn't measure up in reality. Closely examine the facility's cleanliness and maintenance. Finally, check references and ask for examples.

WlTH SO MANY COMPANIES MOVING manufacturing overseas, operating an in-house warehousing network is complicated. As a result, public warehousing - the short-term use of some portion of a third-party logistics providers facility- is becoming an increasingly attractive and common supply chain practice. But with hundreds of millions of square feet of public warehousing space available in North America, how do you differentiate between facilities? More important, how do you choose the one that will be a perfect fit for you?

Let's start by eradicating one of the oldest and most common myths surrounding the subject - that public warehouses are merely tactical logistics solutions. Many public warehousing arrangements are shorter-term than their contract warehousing counterparts, but that doesn't mean these facilities can't play strategic roles in your supply chain, as many longtime users of public warehousing services can attest.

Don't sell the public warehouse selection process short. Although your company may be tied to certain geographic areas for in-house facilities, you have considerably more site selection latitude with public warehouses because they don't carry the same extended obligations and financial commitments. Take full advantage of this flexibility because much of a warehouse's value lies in its location. Use site selection and modeling tools to pinpoint the best potential locale for your facility before you send out a public warehousing RFP (request for proposal). Or ask potential public warehousing candidates to perform location optimizations for you.

Because public warehousing arrangements tend to be brief, it's tempting to choose a public warehouse based solely on what it can do for you today. But, as the song goes, "don't stop thinking about tomorrow" because you don't want to have to change public warehousing facilities or providers every time your volumes or requirements change.

Ask how much more of your inventory your potential public warehouses could handle. In addition, find out what additional services they offer and where else their companies provide services.

Whether your ideal public warehousing location winds up being in Atlanta, Chicago, Los Angeles, or somewhere in between, make transportation access a site selection priority. Look closely at how well your potential public warehousing facilities connect to major interstates, railways, and especially ports. If they seem to be too out-of-the-way, think twice about using them because even the most reasonably priced facility isn't a bargain if it's too remote.

Sometimes something looks good on paper but doesn't measure up in reality. That's why there's no substitute for a site visit when you enter the final phase of public warehouse selection. Travel to each facility you're considering. Meet the facility's general and operations managers to get a feel for how they operate, and watch how they relate to their employees. Closely examine the facility's cleanliness and maintenance. These aspects should make your final selection that much more obvious.

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Finally, check references and ask for examples. Any company trying to win your business is going to do its utmost to present a high-quality image. Make sure the presentations are more than just hype. Contact independent sources who have little if any vested interest in any warehouse you select to get their take on your potential candidates. Interview customers using each of the public warehouses you're considering.

Ask your potential providers to give you detailed examples of how they've handled products in your industry before.

These opinions and reality checks are worth their weight in gold.