What happens after submitting a project spec?

Once a warehouse receives and reviews your project and decides they are interested, they can message back and forth with the you to ask any final questions which will enable them to quote on the deal. If you accept the quote, you can proceed by signing a standard contract online.

How do we communicate with the warehouse during a project?

You will exchange order and shipment data with the client through the platform. You can also exchange messages through the platform.

How will I be billed?

During the contracting period you will agree to a rate card which specifies the charge per activity the warehouse performs.

Then during each billing period the warehouse operator will use the billing tool on the platform to specify the volume of each activity they performed for you and the rates that were agreed. This will kick off the online payment process at the end of the billing period and automatically move money from your account to the warehouse’s account. You will have a review period where you can query any charges you believe are incorrect before they are charged.

How does Warehowz make money?

Warehowz only makes money when the both the client and warehouse have benefitted from our services. We charge one fee to the client and one fee to the warehouse.

First Warehowz charges Warehouse Operators a transaction fee of 5% for use of our platform. This is because Warehowz has helped the warehouse operator fill their vacant warehouse space with a client and is providing the software to ensure the deal runs smoothly. Many warehouse operators absorb this fee by discounting their prices because they have saved significantly on business development costs.

Second Warehowz charges the client a transaction fee of 5% for the use of the platform. This is because the platform helped the client find short term variable space within high quality warehouses converting their fixed costs to variable costs.

The Warehouse Operator uses the platform billing tool to kick off the payment process. Both the Warehouse Operator fee and the Client fee are automatically added to the bill during this process.

Please note: Warehowz reserves the right to change the transaction fees for future projects at its sole discretion. Both the Client and Warehouse Operator will be notified ahead of time of such a change.

Are there minimum requirements to utilize a Warehowz facility?

Yes, but they are very low. A minimum monthly charge of about $2000 is typical. However please note that not all of our warehouse partners will be willing to accept projects of this size.

What happens if my inventory gets damaged?

The Warehowz contracting process will guide this as it requires our warehouse partners to maintain certain standard insurance. If you as a goods depositor require additional insurance, you can negotiate it upfront in the contract that governs the project. Warehowz takes claims of damage and loss very seriously. Please let one of our team members know immediately if your inventory has been damaged and we will initiate an investigation.

Are the prices listed on the Warehowz Platform accurate?

We encourage our warehouse partners to be as realistic as possible when setting their benchmark prices. However, the prices listed in the marketplace are not a firm quote, they are the warehouses best estimate at a given point in time. To receive a firm quote, submit a project spec to the warehouse to confirm their availability and pricing.

Does Warehowz provide transportation services?

Not at this time. Transport to and from our partner facilities is normally arranged by the goods depositor. However, many of our warehouse partners operate their own fleets and would be more than willing to assist. We also have relationships with several large transport providers who can assist.

Can my employees work in your partner warehouses?

In general the answer is no due to liability issues. Normally the Warehouse Operator provides all of the labor and equipment necessary to handle all warehouse activities including labelling, kitting and pick, pack & ship. However, in special cases some of our warehouses relax this requirement. Talk to us to see if we can help.

Why shouldn’t I just lease a warehouse myself?

Sometimes leasing your own warehouse and running it with your own employees and equipment is optimal and Warehowz will be the first to admit that. Platforms like Warehowz are all about coping with supply chain change and we see ourselves working in concert with traditional leased warehouses and your existing 3PL providers to address specific short-term supply chain challenges. Here are several examples of when an on-demand solution will serve you better than a lease:

1. You need an overflow warehouse to store additional inventory over your peak season
2. You want to take advantage of a buying opportunity but don’t have space
3. You want to stockpile inventory to mitigate tariffs
4. You want to test out a new market without committing to it long term
5. You want to offer customers same day delivery by popping up a local fulfillment center
6. You need a short-term solution while you wait for your warehouse to be built in a new market
7. A natural disaster damages one of your existing warehouses