What are the Benefits of Outsourcing Warehousing to a Commercial Facility?

Mar 7, 2024Blog

In the constantly changing world of business, staying abreast of the swift pace may be difficult. One matter in which numerous organizations strive is managing their logistics and supply chain. It’s a multifaceted process that entails everything from getting materials to delivering products. 

Did you know there’s a way to streamline the procedure while enhancing productivity and decreasing costs? 

This is where outsourcing warehousing comes into play.

Outsourced warehouses have transformed how businesses manage their inventory, allowing them to concentrate fully on their business goals. Whether you’re a well-known corporation looking to improve your operations or a startup wanting to scale, you should think about the benefits of letting storage professionals manage your inventory.

Do You Need Outsourcing Warehousing?

Outsourced warehouse commercial storage can aid companies in several ways, including:

  • Scalability to improve managing your inventory
  • Cost efficiency
  • Time-saving

Here are some situations to help you decide if outsourcing warehousing is right for your organization: 

  • If you don’t have ample space in your current facilities, outsourcing warehousing might be the answer.
  • If warehouse management is draining your resources, outsourcing warehousing can give you more time to concentrate on business fundamentals like marketing and product development.
  • Outsourced warehousing typically provides flexible space that can adapt to your business fluctuations.
  • Outsourcing warehousing usually offers temperature-controlled storage facilities
  • If you’re struggling with the maintenance costs of a warehouse, outsourcing warehousing, and logistic services may be more cost-effective than upkeeping your own warehouse.

If any of these situations resonate with you, it might be time to think about outsourcing warehousing.

Benefits of Outsourcing Warehousing Operations

Real Time Inventory Visibility

Inventory management is deemed vital when clients require the best from their warehouse operations, particularly in the beginning stages of production. One of the main reasons why outsourcing warehousing is beneficial is that a logistics company has a technically advanced warehouse management system (WMS), allowing you to view your inventory instantly.

WMS offers you the chance to learn more about the market and demand changes of your products. It also gives insights into putting together a portfolio of specific SKUs or eliminating SKUs or products. A WMS is beneficial to your organization because it assists you in keeping up with market demands while creating a simplified and effective supply chain.

Better Resource Allocation 

Warehousing and fulfillment are resource-demanding tasks. If you have a warehouse but need more space or if you’re new to warehousing, outsourcing can save you from having to spend more money on several things including:

  • Additional warehouse staff
  • Insurance
  • Infrastructure
  • Technology
  • Security

Partnering with WarehousingIT can help you save money and focus on better allocation of your resources. 

Managing Market Shifts

Customer demands are active and recurring. Staying abreast of these changes is the source of success for every organization. Businesses can suffer significant losses if incapable of satisfying customer demand with the correct products.  

An outsourcing warehousing business can help alleviate such issues by handling inventory and providing you with real-time visibility of your inventory. Being able to view your inventory aids you in your ability to satisfy market shifts and customer demands.

Strategically Select Warehouse Locations 

Ideally, you would want to keep all your products near ports and their final destination, whether it’s a customer, retailer, or wholesaler. Well-managed outsourcing warehousing businesses typically have this handled since they have warehouses strategically situated close to major ports and areas, decreasing distribution costs. 

Reasons for Outsourcing Warehousing to a Commercial Facility

The last thing you want is for your inventory to outgrow your warehouse space. Don’t let the task of storing your products become a major issue. By outsourcing your warehousing to a knowledgeable provider, you can increase your storage capabilities and save your resources at the same time. Here are a few reasons to use a third-party warehouse:

Frees Up Capital

Creating a warehouse is a major undertaking. The complex process may take a few years and require a substantial financial investment.

By outsourcing to an existing warehouse, you can avert the costs of buying the commercial space, labor, and equipment related to a storage facility. Saving your money is a critical strategy for your business to be successful. 

Gives Access to Industry Expertise

The sole purpose of an outsourcing warehousing provider is to store your products. Their expertise and knowledge in the warehousing industry is a beneficial resource for your organization.

They’re aware of the safety protocols and regulations, leaving you to focus on your business fundamentals. Existing warehouses have spent years simplifying the storage process to provide you with a competitive edge in your industry.

Reduces Commitment

Building a warehouse is a huge commitment. It requires a hefty investment that could take years to pay off and for you to see a solid return on your investment.

You must buy a space to stock your inventory, hire employees, and create intricate operating procedures. If it gets to become too much of a hassle for your organization, you’ve already supplied massive resources. It’s difficult to reverse this mistake. Outsourcing warehousing provides everything you need with minimal commitment required. 

Enhances Flexibility

Outsourcing warehousing gives your company the freedom to adapt and change as the market fluctuates. With WarehousingIT, there are no long-term contracts. We offer flexibility so you can commit to short-term storage space at any time. If you want to relocate to other areas, you can pick the locations that best serve your distribution markets. Reducing your fixed assets gives you the flexibility to transform as your industry transforms.

Decreases Operation Costs

Managing a huge warehouse is a multi-million-dollar operation. You must purchase the space, cranes, conveyors, shelving, forklifts, cranes, and several other big-ticket items. Not to mention all the employees that will work in your facility.

You can avert this extensive list of expenses and merge your operating costs into one rental fee by outsourcing your warehousing. There’s more to outsourcing warehousing than just getting storage space. 

Leading outsourcing warehousing businesses provide tried and true operating procedures that are established for success. Your products will get to their destination on time without any harm. Outsourcing warehousing services can help improve your distribution efficiency to keep your customers happy. 

Traditional Commercial Warehousing Services

If your organization sells a physical product, you’ll need a storage space, as well as a place to package and ship them. Taking on the duty of finding your own warehouse space and hiring employees to operate it necessitates effort, money, and time that might not be available.

Outsourcing your warehousing to a commercial facility gives you the square footage and specialized workforce necessary for storing and transporting your products. Outsourcing warehousing services vary based on your needs and the resources available from the provider. 

Streamlines Supply Chain Management

Dealing with a difficult supply chain is tough and gets even tougher as your company grows. A smooth supply chain can be a major advantage in numerous industries.

Outsourcing warehousing services will handle the storage, packaging, and transportation of your products so that you can attain fast and competent supply chains. They use skilled practices to eliminate expensive mistakes and postponements so that you can concentrate on other critical business endeavors.

Boosts Your Return on Investment (ROI)

Outsourcing your warehouse operations could deliver a greater ROI than operating your own facility. ROI is the gain or loss you experience after investing in an opportunity. Assembling a warehouse is pricey, taking numerous years for you to get a return on your investment.

Outsourcing warehousing services have a considerably lower cost upfront that immediately magnifies your organization’s abilities. Working with an existing warehouse usually provides a bigger financial gain and a reputation for top-quality distribution in your sector.

Lets Your Business Expand

Outsourcing warehousing services provide the sources you need to scale your operation to meet growing demand. You can begin small to save money with the chance to grow over time. 

Products Ideal for Commercial Storage

Some frequently stored business products in commercial storage spaces include:

Seasonal products – Items like seasonal clothing, summer/winter products, or holiday decorations might need to be stored during the off-season. 

E-commerce inventory: Numerous e-commerce companies outsource their warehousing. Warehouses can manage most products from small accessories to huge household products.

Medicine: Some pharmaceutical products must be stored at controlled temperatures. Outsourced warehouses have cold storage facilities that can assist.

Supplies for schools, hospitals, and government offices: These could include everything from office supplies to medical equipment.

Industrial materials and equipment – This could include anything from heavy machinery to construction materials.

Outsourcing Warehousing and Logistic Services with WarehousingIT 

Outsourcing your warehousing needs to WarehousingIT not only streamlines your operations but also offers a partnership with an experienced industry leader. With us, you get reliability and quality from a team of experts. Our professional warehouse staff will manage the unloading, loading,  packaging, and distributing of your products.

Contact us today and allow us to manage your warehousing needs so you can concentrate on growing your business.

Kyle Carney
Author: Kyle Carney

Business Storage Solutions

Why Choose WarehousingIT?

No Long Term Contracts

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Inventory Management

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Multiple Locations

Choose the location(s) that best fit your distribution markets.

Low Minimums

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