Warehouse Solutions 101
Warehouse Solutions: The Ultimate Space Savers
When it comes to manufacturing products, using a logistics and warehousing system is one of the keys to successful distribution. There are different types of warehouse solutions available to businesses, including the construction of your own warehouse or outsourcing to a third-party. While every business has different needs, they all have the same bottom line – keeping costs to a minimum and generating profit. Before deciding that warehouse solutions are too costly, businesses should consider all the benefits, including the cost-savings that come with it. Contact us today to reap the benefits!
A warehouse is more than a building where businesses store products and goods. It is a crucial component of a strong logistics system. A warehouse is also where many manufacturers pick, pack, and prepare packages for shipment. Hiring a third-party company for warehouse solutions offers several benefits for businesses as long as they choose the right company.
Benefits of Using Warehouse Solutions
- Less worry about growth.
Warehouse solutions offer businesses a place to store inventory off-site. By not having to store inventory, companies don’t have to worry about outgrowing their existing space. If expansion and growth is the goal, the new open space can be utilized for additional production areas as well.
- Central location for inventory.
By having a centralized location for your inventory, every incoming and outgoing shipment may also be centralized. This helps to cut down on shipping costs, allowing businesses to ship in bulk.
- Build a safety net.
Building a safety net of inventory is a great way to keep processing orders, no matter what. There are times that machines breakdown, materials run out, or product defects occur. By having a safety net of inventory on hand, orders may still be fulfilled without delay.
- Fewer employee expenses.
Materials and labor are a small part of building a warehouse facility. Once the warehouse is built, businesses have to recruit employees, train employees, and purchase necessary supplies. By outsourcing to a third-party warehouse, these expenses become the responsibility of warehouse management.
- Buy materials in bulk.
Having a place to store inventory and materials gives businesses the chance to buy materials in bulk. When you buy in bulk, many suppliers offer a discount that you can pass on to customers in the way of savings.
- Minimize business risk.
Businesses may transfer some risks of storing inventory and materials to the third-party. If a fire, flood, or another type of loss were to occur, the liability would fall on the warehouse company instead of the business.
Depending on the business, inventory may be higher during certain seasons and lower at others. Using a third-party warehouse allows businesses to carry flexible loads, only paying for the space they need.
Econo-Courier can offer your business optimal warehouse solutions. Contact us today to learn more!