Free storage days are often used by 3PL service providers as a tool to encourage warehouse activity. A good software system should be able to support free storage days with ease.
Free storage days are a great addition to the toolkit for 3PL service providers and provide a tried and tested method to incentivise client partners to move product quickly.
How do they work?
For example, if x3 free storage days are allocated to a client they won't pay for storage for those goods as long as they are collected before the end of the free storage period. If they are not collected before the end of the free storage period (x3 days) then the usual storage rates will apply.
As you can imagine this can become complex and difficult to document and analyse which is why we have built functionality into the Consignly Storage Calculator to accommodate free storage days.
The Consignly Storage Calculator.
The Consignly Storage Calculator provides 3PL service providers the ability to compare multiple storage charge methods on one graph.
The Consignly team has made it even easier by adding the ability to compare free vs chargeable against a primary and secondary storage charge method.
In the chart below, free storage is shown in grey with chargeable storage shown in orange and blue.
Not only can you document free storage days with ease but you are able to utilise data-rich insights to spot trends over time. As a result, you have complete visibility of your storage charges and can make decisions backed by accurate data.
Free storage days are a great addition to the toolkit for 3PL service providers and provide a tried and tested method to incentivise client partners to move their product quickly.
If you have any questions about setting up free storage days for your clients or would like to know more about how Free Storage Days work get in touch with the Consignly team.