Contract Warehousing

Conceptually, contract warehousing is very simple: The client contracts the management of its products or services to a third party for an agreed period of time so that the client can focus on its core business. It is a model with proven success and benefits across many types of industry.

For example, a client would contract ACR with the responsibility to manage the receipt, storage and distribution of its products within agreed service and cost parameters for an agreed period of time. In most instances, such a period could extend from one year to several years or more.

In essence, the contract has specific service and cost outcome objectives, has agreed communication and data interchange protocols, is measured by KPI’s and in general terms, involves full electronic interfacing between ACR and our client’s host system.

Whilst a contractual relationship is a standard approach for many business who are familiar with the concept of contract warehousing (commonly referred to as outsourcing), to many small businesses or those new to the outsourcing concept, a formal binding contract is one that is treated with caution if not hesitation.

ACR is flexible in this regard and understands that many small independent businesses prefer to operate on a more informal or non contractual basis, particularly if they are venturing into third party logistics for the first time.