Material Handling Experts


Information on the products and techniques to better store, handle, and move products in your facility.

The Cost of Managing a Skid or Pallet

September 24, 2012

If you’re paying someone to store a pallet for you, what’s reasonable? Are you overpaying for convenience or location? It’s not easy to compare 3PL vs. 3PL, or even your own warehouse so you know for sure if you are getting value for your money. But there are some basic assumptions you can make to help you understand what you’re dealing with, the costs the 3PL may experience, and reasonable costs for your storage projects.

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Is the midwest the best location for your distribution center?

October 31, 2007

That’s what Todd Yadzi of the 3PL TAGG Logistics thinks, and writes in this Operations & Fulfillment article, “DC Operations Why Midwest is Best”. His basic premise is that operations on either coast slow an entire supply chain down and increase its costs. Part of this comes from the proximity issue (I suppose he’s thinking that you would spend more on a coastal DC’s for each coast than you would for one larger operation in the middle of the country). It makes sense in that land, labor and utilities are less expensive down the center than they are near the larger urban centers. He believes that if you’re shipping from coastal ports to your facility, it still makes economic sense to move product inland due to the higher carrying and transportation costs.

Take that a step (and a few years) further: as the NAFTA corridor matures, you will see areas that align with it receiving larger and larger amounts of cargo, not only from Central America, but from other areas as the Port of Houston capacity grows. This is already happening, and all that growth will travel north from Texas and into the heartland.

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