An important tool for companies, especially in the last two decades, is outsourcing. Your company can outsource many services that were previously performed by internal departments and employees. While many people think of manufacturing and payroll as the top departments that are routinely outsourced, there is one that may surprise you: warehousing.
Outsourcing your warehousing may be a necessity for your business, especially if you are an East Coast business that needs to efficiently get your products to the West Coast, or vice versa. Renting warehouse space on the opposite end of the country to house your products is a form of outsourcing. Your business will run better and save money when you implement third-party logistics for your shipping, receiving, and warehousing.
Even if your business owns and operates its own warehouses, there may be certain times of the year when you have more inventory to store. This is when renting or leasing warehouse space can come in handy. You can store all extra inventory in the contracted warehouse so you and your employees don’t have to make room and clear a space in your warehouse. Even in a warehouse environment, clutter and many obstacles can be dangerous to work in. It just makes sense to have excess inventory securely stored in another location while working in an easy-to-navigate warehouse environment.
If you already own your own warehouse, you know the time, effort and money it takes to hire and train warehouse employees. When you rent warehouse space, the staff is included in the price. These storage clerks specialize in ensuring the most ideal storage for your items. You will still be responsible for providing the labor to manage shipping and receiving, but you will not have a constant employee presence in the leased warehouse space.
Depending on the type of inventory you’ll be storing, you’ll need to research your potential rented warehouse space for certain features. Make sure the warehouse is on stable, level ground with easy access. Also look for the type of high rack storage that best suits your needs. Location is also an important factor when deciding which warehouse space to rent. You will most likely choose one that is close to a main road for easy access by tractor-trailers and delivery vehicles.
You should consider renting a warehouse that allows you to keep in touch with your inventory. Some warehouses have very high-tech logistics software that will allow you to track your inventory over the Internet. This will give you the power to track and check your inventory yourself, instead of calling an operator and waiting while someone else checks for you.
Third party logistics is a growing trend in the warehousing business. Make sure you choose the right warehouse for your business by researching convenience, staff, and building amenities.