Reasons Why Many Outsource Their Warehouse

Owning and managing your own warehouse is an appealing idea: you run your warehouse the way you want, you employ the people you want, and you are the one responsible for looking after your own goods. As appealing as it is, it can be logistically daunting if you don’t know what you’re doing or you don’t have the resources. That is why outsourcing a warehouse is a cost-effective solution that provides you with the best result, as soon as possible. Many companies choose to outsource their warehousing needs, and here are the most common reasons why they do:

Renting vs capital investment

Running a warehouse or having a new one constructed requires heavy capital investment. Instead of buying, constructing, or renting a warehouse and employing and training a staff to run it, you could outsource to a warehousing provider that specializes in storing your goods for you. The warehousing provider and its experienced staff will care for your goods, ensuring that they are stored in the appropriate environment. With an outsourced warehousing provider managing your needs, you pay significantly less than if you were to get your own warehouse up and running. You can use that money saved to invest into your core business.

I want to focus on my core business

Focusing on your core business makes sense. Setting up your own warehousing operation takes time and money that is better spent on your core business. An outsourced warehousing provider will get you the best results, in less time and for less monetary investment. This is especially true if you have an odd product that has a lot of storage requirements, as the experienced team of the 3PL warehousing provider will know what to do, how to do, and will do it fast.

It is a smart choice to outsource your warehousing needs for this reason alone.

Outsourcing to a specialist/expert gets better results

Becoming an expert takes time, effort, and, in the case of a business, a lot of money. However, if you outsource to a warehousing provider, you get expertise at an affordable price. If you have a product that is difficult to care for, such as chemicals, pharmaceuticals, or nutraceuticals, you can rest assured that an experienced warehousing provider will know what to do and how to do in a timely manner.

My business is too small to run a warehouse

Depending on the size of your business, it may or may not be viable for you to maintain your own warehouse. Smaller companies may not have the capability to run their own warehouse, whether it be manpower or capital. Larger companies with their own warehouses may still find it beneficial to outsource warehousing, as managing a warehouse and its stock can be resource intensive.

I am located far away from my customers

If your business is in Edmonton, Alberta, but most of your customers are in the GTA, it makes sense for you to outsource to a warehouse that is in or around the area in which your primary business originates. And if that same warehousing provider can also arrange transportation, your goods could be picked up and dropped off with less work on your part. This will dramatically reduce fulfillment times and lead to better customer satisfaction overall.

I need flexibility

Surprisingly, having your own warehouse can be quite limiting. With your own warehouse, you have physical limits (how much your warehouse can hold), as opposed to outsourcing your warehousing needs can mean limitless warehouse space. If an outsourced warehouse can fit no more of your goods, you can outsource another warehouse.

If your company begins to grow rapidly, you may find that your warehouse space is diminishing, and outsourcing a warehouse is a quick and cheap way to get the warehouse space you need. Conversely, if you find that you need less storage space, you can pay less money for less space with a warehousing provider, whereas if you have your own warehouse, you are still paying the same minus less labor than when you had significantly more stock.

Whatever your stock levels are, depending on how much business you get, outsourcing a warehouse is the best way to ensure maximum flexibility.

I want a jack of all trades and a master of all

A 3PL warehousing provider, like ADLI Logistics, not only provides warehousing but also a wide range of logistics services. For this reason, outsourcing your warehousing to a company that can handle any other need or concern you have or will have, is a great move for your business’ future. Picking and packing and transportation are some of the services that you may want your outsourced warehousing company to handle.

These are but a few of the many reasons why a business would want to outsource their warehousing needs. Warehousing isn’t as easy as storing items in a large building; there are many things that could go wrong, slow you down, or cost you money. Outsourcing a warehousing provider is a smart business decision that can only help your business thrive.

The above reasons are just some of the many reasons you may want to enlist ADLI Logistics to manage your warehousing needs – and even your distribution and freight shipping needs, just in case! For more information fill out our contact form or call 1-877-363-7281!