Below is a list of the top reasons companies are outsourcing their warehousing activities to reduce costs and increase the competitiveness of their business.
1. Focus on core business
If self storage and shipping are not your primary business, outsourcing them will most likely allow you to pay more attention to your main business activities, such as selling, marketing and developing new products.
2. Reduction of risks
Warehousing and shipping involve all sorts of risks, from the financial risk of loss or damage to the stock to the possible injury of one of your employees. This is why outsourcing of self storage services generally reduces business risks.
3. Better Access and Safety
Most of the self storage services offer wide doors, proper security, moisture free premises and other features that are hard to acquire when you are storing your material or stuff at your home.
4. Reduction in Storage Costs
Indeed, sales of the majority of companies are cyclical; that is to say that these companies sometimes have to have larger stocks. So, if you are managing the warehousing and shipping your goods yourself, you must possess/rent at all times the ability to manage maximum inventory, even if it only happens once a year.
5. Reduction in the cost of labor
As with the need for storage capacity, the need for labor from a normal warehouse varies. If you have your own warehouse, you need more employees during periods of maximum occupancy and fewer employees when you are less busy. On the other hand, if you choose to do business, the workforce that the company uses is spread across many customers, reducing deadlines and wasting time.
6. Better use of capital
Warehousing is an expensive option in terms of capital and investment. If you are like the majority of companies, you grab every dollar of capital to invest it. Indeed, if you prefer to invest your valuable capital in the development of new products or in the purchase of new machines to benefit from a competitive advantage, self storage rentals are there for you, because you only pay for what you use; It is therefore an expenditure and not an investment of capital.
7. Agility
If you manage your storage activities yourself, sudden growth or decline in your business has a huge impact on your investment in warehouse space and on your human resources. It takes time to adapt to acceleration or deceleration, and you may miss out on business opportunities while you are building and engaging.
8. Location selection
When you choose to entrust the storage and some of your activities to a self storage services, you have the choice of location. This saves you some shipping costs while providing better service.
9. Service Improvement
Since the sole activity of a warehouse is to pick-up/load/ship goods, such an enterprise is a specialist in this matter. It has, indeed, the appropriate systems and people who excel in this field. This is why the majority of companies that choose to outsource their warehousing activities show improved customer service.
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