Over the last year, AI has been at the forefront of nearly every business conversation.
And to fuel the AI boom, there has been a rapid expansion of the need for computing power, which in turn is driving a rapid expansion in new data center construction.
Though AI has made some tasks much more efficient, building a data center is still no easy feat. It comes with nuances that separate it from other types of new construction, especially when looking at the logistics and supply chain requirements.
For this type of project, it’s incredibly important to procure the right freight providers to ensure smooth construction — you can’t afford costly delays because you picked the wrong carrier.
If you’re involved in data center construction, this post will help guide you in selecting freight providers that will deliver (literally and metaphorically).
Look for these 7 things when choosing a freight provider for a data warehouse build
1. They should have done this before.
Building a new data center is complicated enough — you don’t want to waste time babysitting a logistics provider as they get up to speed.
These projects take place over a tight timeline and require a huge investment of financial resources, as well as constant coordination between shippers, contractors, vendors and on-site workers.
When evaluating logistics providers, prioritize experience and competence.
If a provider hasn’t done this specific type of project, they should at least have deep experience in project logistics, new construction freight, and delivering to low-structure environments (e.g., a rural job site with no address or loading dock).
Pro tip: don’t be afraid to spend more to secure experienced, reliable providers. Transportation is a relatively small part of the overall project budget, and pinching pennies here could cost you much more through missed deliveries, damaged products, poor service, etc.
2. They should be asking the right questions.
One of the best ways to know if a provider knows what they’re talking about? If they’re asking you the right questions.
Throughout the RFP or quoting process, a freight provider should be asking you detailed questions about all of your needs and requirements.
If they’re just throwing rates at you without peppering you with questions about commodity loading and unloading requirements, blocking and bracing, delivery timing, control towers, tracking requirements, GPS coordinates, insurance requirements, PPE needs, communication preferences, etc., then they probably don’t understand the complexity of your project.
3.They should be setting expectations.
Once a provider has completely vetted the opportunity and fully understands your needs, they should be outlining what they can provide and identifying potential risks in your shipping plans.
If they aren’t leveraging their expertise and experience to help you get out in front of issues, then they may not have much of either.
Furthermore, they should be clearly communicating with you their standard operating procedures (SOPs) surrounding driver dispatching. How are they going to vet carriers and set expectations with the drivers picking up and delivering your freight?
4. They should have capacity across multiple modes and service types.
Fiber optic cables, heavy machinery and equipment, electronics, rush orders, high-risk high-value, imports coming off an ocean liner — there many different types of freight that will be coming to the job site, and it’s important that your providers can handle whatever you need.
This is where the benefits of working with a third-party logistics company (3PL) really start to shine. A good 3PL will have access to thousands of carriers of all different types.
So whether you need open deck, heavy haul, dry van, LTL, million-dollar cargo insurance, expedited team drivers, sprinter vans, port drayage, or any combination, you’ll be covered with just one provider.
5. They should be flexible (very).
Some carriers thrive on a running a consistent, multiple-loads-per-day drop pool with dry vans.
This is not that.
Most shipments throughout a data center build are not going to conform to a predictable schedule or standardized requirements.
You want a provider that can get team drivers for an 11 PM pick-up delivering straight through with four hours’ notice today, and 12 open deck drivers with million-dollar cargo insurance policies across two shipping locations tomorrow.
3PLs generally thrive on scalability and flexibility; this is another reason to work with one for this type of project.
6. They should have significant size and scale.
To have reliable capacity across multiple modes and services, a provider needs to have a decently sized network.
It’s unlikely that a small, boutique logistics company is going to have the network density and procurement abilities to provide you with the service you need.
For a project as complex as a data center build, it’s best to trust a bigger provider.
7. They should have flawless communication.
While this seems like a given, it’s difficult to understate how crucial this is for a seamless shipping experience.
A good logistics provider will be communicating with you, the shipper, the receiver, people at the job site, the drivers — anyone and everyone involved to make sure the right people are in the loop.
Communication should be consistent and constant — a few hours of notice, even if it’s bad news, can make a huge difference in construction operations.
This extends to digital tracking and visibility. Your provider should have automated tracking and digital tools for real-time visibility, and should have the ability to integrate with your TMS if you prefer.
Recapping how to choose a logistics provider for data center building
Building a data center is hard, but the right 3PL can help make it a little easier.
Here are seven things to look for from your logistics provider:
- Previous experience in data center construction.
- Asking strategic questions before ever giving you a quote.
- Setting clear expectations with you and carriers.
- Diversified capacity and service offerings.
- Extreme flexibility and scalability.
- Significant network size and scale.
- Flawless communication.