In this guide 6 sections
Settle five things before the first pallet arrives: the SKU master, the inbound ASN format, the rate card, the storage zones and the client’s reports. Test each one with a dummy receipt that runs from the dock door through putaway to a test invoice, before any real client stock lands on the racks. Both sides then sign one page.
Load the SKU master before anything moves
Ask the client for one file listing every item they expect to send, because pallets will otherwise arrive with products your system has never seen. Clerks invent names on the dock. One item then sits under three codes.
Check each row for the fields that drive handling: case pack, inner pack, net and gross weight, carton dimensions and barcode type matter most. Flag batch, expiry and serial tracking per item, since each one changes how you receive, put away and pick stock at the dock and in the aisle.
Agree who owns changes. New items need a formal request, not an email buried six replies deep in a thread, so name one person on each side to approve them.
- Item code, description and unit of measure
- Case quantity, pallet quantity and pallet height limit
- Barcode on the unit, the case and the pallet label
- Batch, expiry or serial tracking flag
- Hazard class or temperature need, if any
- Kit or bundle parents and their components
Fix the inbound ASN format
An advance shipping notice is only useful if your receiving screen can read it, so decide whether it arrives as a spreadsheet, CSV drop or EDI message. Write down the column order. Fix the date style too.
Run a dummy ASN through the system before the real one lands, because mismatched purchase order numbers and missing lot codes show up there while they cost nothing. Fixing them later, with a trailer waiting at the dock and a clerk receiving blind pallets by hand, costs hours of overtime and a pile of unmatched pallets.
Set the tolerance for shortages and overages in writing, and say who takes the call when a trailer arrives at the gate with no notice. Decide it now.
Load the rate card the way the system will bill it
The contract says one thing and the billing engine does another unless someone sets it up line by line with the finance person sitting beside the warehouse manager. A trigger, a unit and a rate.
Storage is usually per pallet position per period, with a rule for partial pallets and a cut-off date that decides which period a late putaway belongs to. Handling in and out is charged per pallet, case or line, while extras such as labelling, shrink wrap, kitting and cycle count requests need their own codes. Otherwise they go unbilled.
Raise a test invoice from the dummy receipt and compare every line with the contract, and if the total differs from what sales promised, find out now.
- Storage charge unit and billing period
- Inbound and outbound handling basis
- Value-added services and their codes
- Minimum monthly charge, if the contract has one
- Fuel or surcharge rules and who approves them
Assign storage zones and slotting rules
Decide where this client lives. A dedicated aisle, a shared zone or a caged area each changes audit risk and billing, so mark the bin range and putaway suggests only those locations.
Look at the product itself. Fast movers belong near the dock, heavy pallets on the bottom beam, and anything that needs a cool room goes into the cool chamber. Quarantine and damaged stock need a separate location with a hold flag, or they will be picked by mistake and shipped to a customer who ordered sound stock.
Print the location labels. Walk the zone with the client’s contact. Ten minutes on the floor settles more questions than a full page of notes ever could, especially about pallet height and aisle width.
Agree the reports and the sign-off page
Clients judge a warehouse by what lands in their inbox, so settle which reports go out, how often, in which format and to whom. Stock on hand by batch, a receipt confirmation and an aged inventory list cover most requests, and each can run from the same ledger without re-keying.
Write one page. It records the SKU file version, ASN format, rate card version, zone and report list, and both sides sign it with the date beside each name. Six months on, when a dispute lands on the account manager’s desk, this one page settles the argument before anyone calls a lawyer.
Book the first live receipt only after the dummy cycle passes cleanly through receiving, putaway and the test invoice, and put that date in both diaries.
- Daily stock position by item and location
- Receipt and putaway confirmation
- Shipment confirmation with tracking reference
- Weekly aged and near-expiry list
- Monthly invoice with line-level backup
3PL client onboarding sheet
Five blocks make up the sheet, one per section above, and the SKU block lists the fields to collect and the file version received. The ASN block records format and tolerance. The rate card block has columns for charge, trigger, unit and rate, while the zone block names the bin range and any holds. The last block lists every report with owner, frequency, format and sign-off date, plus the recipient listed by name.
Open a blank worksheet to printQuestions owners ask
How long does it take to onboard a new 3PL client?
The pace follows the quality of the client’s item data and the number of systems that must talk to yours, not any fixed calendar. A client with a tidy SKU file and a fixed ASN format moves quickly, while one who still works from emails drags the whole cycle out.
Who should own the SKU master?
The client owns the facts about the product and your team owns how it is set up in the system, including units, barcodes and tracking flags. Name one contact on each side who can approve changes, so that no edit ever arrives as a stray email on a busy receiving day.
Should the rate card be tested before go-live?
Yes, because differences in partial pallet rules and minimum charges are common and they are easier to fix on a dummy receipt than after stock fills the racks. Compare it with the contract.
What if the client cannot send an ASN?
Set a manual receiving routine with a fixed form, a named approver and a short delay before putaway so the count is checked against the order. Treat it as a stopgap. Ask the client to move to a file or an EDI message within an agreed period, and write that date on the sign-off page.