There comes a time when most retailers will look towards their next period of growth and expansion.
In addition, you’ll probably ask yourself ‘How much does a warehouse cost?’
The most obvious step, for some businesses, is to look for additional premises albeit outlets to sell or warehousing and storage space. While some may have managed the fulfilment and distribution process from the start, others would have outsourced. But how much does a warehouse cost versus outsourcing the full process? This blog takes a look at the pros and cons of both DIY and outsourcing your warehousing provision.
As expected both can make a substantial impact on your business operations if not considered thoroughly. There is a lot of responsibility for managing your products in your warehouse; you’ll be accountable for inventory, handling, storage, processes and tracking, among other obligations. With outsourced warehousing, a specialist company will take control of your inventory and products, performing the same duties you would be in your warehouse, without the stress of juggling both warehousing operations and your business.
Time & Cost
So, how much does a warehouse cost? With purchasing and running your own warehouse, you would need some finances to purchase not only the building but the equipment, technology and people to make it function. The benefit is that you would own the premises which would become and investment for the business.
Another advantage to keeping the whole process in-house is that you have full control over the process. From the type of packaging to the WMS, it is up to you how you choose to run your warehouse.
This is not an option for everyone. Taking on your premises, staff and all the insurances that go with it is a huge financial outlay. Running a warehouse as well as carrying out maintenance and checks are performed is resource heavy. So for those that do not have money, or time, to invest in this option, outsourcing is a smarter solution.
With outsourcing, you know that the work is managed for you regardless of any building or staff issues. Customer services, pick and packing, shipping and everything in between will happen for one fixed price, and you get the expertise as part of the deal. Outsourcing your warehouse provision can save time and reduce unnecessary overheads for any retail business.
When your product is in your hands, you can personally make sure it is looked after, stored appropriately and handled well, but do you have the time to do so?
Outsourcing means you’ll have to trust an experienced company will take care of your products with as much care and consideration as you would. Handing over responsibility often comes with its concerns. After all, this is your business in someone else’s hands, so make sure you ask the right questions, visit the premises and check out their accuracy rates to reduce those concerns. After all these people are experts in the field and know exactly what to do to provide the best service.
Customers come first
When you take charge of your warehousing, you deal with your customer’s first-hand throughout the whole process. While is it nice to be in touch with your client at every step of the way, it can take up your precious time.
Full warehousing and fulfilment specialists offer numerous services for clients including returns, shipping and even customer service. This means your clients get looked after with the time and consideration required allowing you to get on with growing an empire.
Health and Safety
There are a lot of health and safety requirements involved with running a warehouse. Expert training has to be performed on a regular basis and in some areas of warehouse operations are mandatory.
Passing the warehousing on to an experienced warehouse management company, means you don’t have to think about policies and daily checks. This is out of your hands so that you can concentrate on other aspects of the business.
What are your future business goals? How much does a warehouse cost to support your business? Do you have investment to purchase, manage and maintain your own premises? Knowing the answer is a good way to find out which warehousing outcome is best for your company. Carefully consider the pros and cons of both warehouse management options to make sure you choose the path which will benefit your business the most.
According to Manufacturing Business Technology, 15% of all goods are either returned or never sold in the first place, and a considerable portion of these products almost always end up back in the warehouse they came from. If you consider the average warehouse space,...read more