Outsourcing warehousing is one of the best ways for both small and big companies to reduce cost and raise profit. Outsourcing warehousing is a smart move for importers and exporters to increase their market presence and to generate more revenues. Besides, when someone else handles your warehousing, you will have more time to spend on other aspects of your business. Below you will find 10 potential benefits of outsourcing warehousing.
Buying or renting a whole warehouse can be very expensive depending on the space and the location. Thus, small and startup companies are strongly recommended to avoid it as they will tie up their cash flow if they opt for hiring a whole warehouse.
In order to avoid such financial problems and boost the expansion and the growth of your company, you should outsource your warehousing so you will only pay for the space you are using.
When a third-party logistics provider is responsible for your warehousing, it is highly likely that all your products and shipments will be stored under the same roof. Different shipments for different locations can be found together thus making handling more time and manner efficient.
Flexibility is very important in the import and export business. If your company is scaling up, entering new markets and introducing new products, its needs will change. It will be difficult for small companies to estimate the amount of warehouse space or level of distribution services that you will need, but 3PL providers are experienced and they can fulfill your new requirements.
Outsourcing warehousing is also beneficial in case your business is scaling down and you want to reduce the storage space you hired. You can sign a new agreement with the warehouse owner.
Fast Shipping and Delivery
Warehouses provide several services that will improve the transit time of delivering your shipments. When you are opting for an outsourced warehouse, you are free to choose the most convenient one depending on your shipment. That is to say; if you are shipping by sea, you can choose the nearest warehouse to the port and if you are shipping by air, you can choose the nearest warehouse to the airport.
The location of the warehouse is very important in the quick delivery of your shipment. Thus, choosing a strategic warehouse will help you deliver your shipments quicker and faster. Don’t forget to choose a well-equipped warehouse that has excellent transport connections so your shipments can be at the final destinations without any delays.
Security is the priority of most importers and exporters. When it comes to renting a warehouse to store products and shipments, security should be your top priority. There are many warehouses known for the impeccable security levels. Reputation matters in the shipping business and a warehousing services’ provider with a reputation for being secure should be a decisive factor in your choice.
Warehouses are not only about providing you with a space to store your goods, but they also provide many useful services such as a full spectrum of add-ons include packaging and labeling, packing and unpacking, inventory management, shipping and dealing with returns. The quality and the cost of these services differ from one warehouse to another depending on the location and the reputation of the warehouse.
No Staffing Issues
When you opt for an outsourced warehouse, you are not only opting for space, but also for the staff, equipment, and materials. Outsourced warehouses usually have very competent workers who have been well trained to perform their roles in the warehouse.
Access To Solutions
Due to the lack of funds and capital, small businesses don’t invest in technologies. However, outsourced warehouses have the capital to invest in technologies. Thus, when you are hiring a 3PL provider, you will have access to many useful technologies such as radio frequency identification and other inventory tracking methods that will help you build a stronger and a better relationship with your customers.
These technological solutions are very important to meet with the demands and expectations of your customers and to stay competitive in the market.
Experience and Expertise
Being an importer or an exporter is different from being a supply chain manager. Warehousing is not your area of expertise and it can be very challenging for you. On the contrary, 3PL providers are experts in managing warehouses. This experience is vital in determining whether your company serves the customer or loses the customer.
Some shipments and products require specialized handling. If you have a dangerous, oversized, heavy or vulnerable shipment, sourcing a warehouse facility that specializes in handling these kinds of shipments is the best solution. They have special equipment and trained staff for this kind of shipments.
Bottom line, if you are new to this business or you are running a small company it is better to hire an outsourced warehouse facility and focus on other aspects of the business such as customer satisfaction.