Most manufacturers and e-commerce businesses prefer to handle their warehousing and distribution operations. However, this can often become an extra burden on a business's operations and finances.
As a result, it is advisable to consider outsourcing your warehousing and distribution operations. By outsourcing, you hand over all your warehousing and distribution to a warehouse distributor. Thus, you no longer have to oversee the storage or distribution of goods.
So, if warehousing and distribution are becoming a burden, here are two reasons you should consider outsourcing to a warehouse distributor.
Shift Focus to Your Core Business
As mentioned earlier, in-house warehousing and distribution create an extra burden on your core business. For instance, if you are a goods manufacturer, your core business is to produce goods. As for an e-commerce business, your core business is advertising and making sales.
Thus, if you also have to manage your warehouse and distribution operations, you will have the extra burden of handling inventory management, goods storage, order filling, and carrier management. So, you may have to split your attention between running your core business and handling warehousing and distribution.
Thus, you can shed some of the burdens by outsourcing your warehousing and distribution operations. Outsourcing to a warehouse distributor enables you to focus on your core business.
Contrary to popular belief, outsourcing is more affordable than in-house warehousing and distribution. For instance, when you opt to handle your warehousing, you have to rent a warehouse and also hire employees to work in the warehouse. Furthermore, when you choose to handle the distribution, you must hire different carriers to transport the goods. These costs lead to hefty business expenses that consume a significant portion of your profits.
Yet, you can mitigate the overhead costs by outsourcing your warehousing and distribution to a warehouse distributor. By outsourcing your warehousing, you drop the need to rent a warehouse. Also, you don't need to hire warehouse personnel because a warehouse distributor will provide them.
Furthermore, warehouse distributors cater to a wide variety of clients. As a result, they enjoy favorable economies of scale and extend the same to you. For instance, the warehouse distributor's clients share the cost of running and maintaining the warehouse. Therefore, the fees you pay a warehouse distributor are far less than what it would cost you to handle your warehousing in-house.
Also, warehouse distributors frequently ship bulk loads of goods. They can therefore negotiate favorable shipping rates with different carriers. Thus, using a warehouse distributor to ship your goods enables you to enjoy lower shipping costs.
Contact a local warehouse distributor to learn more.