How big of warehouse space will you need to transload and which stores will be under the transloading contract. (Transloading is delaying delivery to client because of space limitations)
ANSWER BY - TARIQ ROBINSON
In the Moving Industry a 5,000 Square Foot Warehouse will get you certified as an agent. In freight it is more the radius you will work rather than the size. Not saying size doesn’t matter., You don’t put the size first when looking unless you are going to lease unused space.
You are better off starting in the business as an owner operator and learning the business before getting into the warehouse. Let me be more straightforward.
- If you never work in the warehouse or distribution industry as a manager of any kind. It will be wise to learn how your maneuver the goods and it will help you in shipping and receiving. I suggest you obtain you CDL License and you work for Western Express or J.B. Hunt and then you want to advance.
- Next you need to know Brokering Skills before warehousing. You need to move freight into and out of your facility. So brokering will educate you on how to move freight and which trailer is more resourceful for your warehouse instead of buying a trailer you used once or twice a year.
- Next you need to learn Logistics. If you never was an owner operator and never had the opportunity to load your trailer or do an inventory of the items you are moving. Then you need to find the educational classes or try moving to get an understanding on the process.
Next once you have obtain all this knowledge. Now You need to price the item twice to get it moved. Let me explain.
- Say your warehouse is a cold storage. You have frozen food. Now how much did it cost you to get it to the warehouse?
- How much does it take to store the items in your warehouse
- How much does it take to get it out of your warehouse
So say the good cost $5.00 to make. You are housing it in your warehouse for Whole Foods. Ok the $5.00 to make the item has to include shipping it out to the next stop or plant or processing unit.
Now the $5.00 is now $7.50 per item. Now it was a broker that sold the gods from manufacturer to processing area. The same item is sold again to a broker and sent to distribution center
The item is now $10.00 per item inside your warehouse. Now, Where is your warehousing fit in the logistics chain pricing?
- Where do you want to start your warehousing at manufacturing or storage or transloading?
- The item has to be sold and resold again and again to it is on the store shelves.
- So if you don’t know the shipping cost how can you charge extra to move the freight?
Owner Operator are throwing numbers, Brokers are throwing numbers. You are dumbfounded so you don’t know the rates. So you are moving freight but you are the one saying inflation.
You need to know the brokering side of the business as well as trucking.
So how could I maintain the business? I need to be the entire process from manufacturers to Receivers.
The business is unbalanced. Carriers are saying rates are trash. Brokers are supposed to by law expose carriers their rates of income.
I am not fond of showing my paycheck to anyone. If you do your math as a broker you know what it costs to move the freight.
- Most important about warehouses that leave people with loss of contracts and capital. In trucking you stop if the weather is bad for your safety and the public. You route through storms and you stop in heavy traffic.
In the warehouse you must plan ahead and you must be working on tomorrow today. You will not last if you are working on today.
- If a driver calls saying a delay or can’t make schedule appointment. That is planned for tomorrow. The first thing you tell a driver i am booked up i may not get you in today if you miss your schedule time. You are working on tomorrow. So today is dead.
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