A contract warehouse helps companies and entrepreneurs store
inventory, supplies, raw materials, or any other good in a central location for
maximum transportation efficiency. Since the warehouses are centrally located,
they can be easily transported to nearly any destination in the contiguous U.S.
It also allows businesses to outsource the costs of both space and labor
associated with storing inventory. In order for businesses to succeed,
many are taking advantage of outsourcing much of their operations to third
parties. You are guaranteed to reduce your overhead costs and increase your
bottom line by outsourcing your warehousing needs. Here are five benefits:
1. Services: Many
warehouses offer a variety of services to cater to manufacturers and
distributors. Whether you need packaging services, inventory control and
management, local transportation, or ongoing maintenance and quality control, a
contract warehouse can offer these services. The larger warehouses even offer
fulfillment and customer relationship services. For many business owners, that
means they can completely outsource operations so they can focus on strategy
and building their business.
2. Cost: The
difference in the cost of holding your goods in a contract warehouse versus a
private warehouse is enormous. By taking advantage of serving multiple clients,
a contract warehouse can make better use of their assets, namely, warehouse
space and loading docks. This allows them to carry lower overhead costs, and
those cost savings are then passed on to their clients.
3. Fees: In many
public and private warehouses, the lessee is required to pay storage fees and
loading and unloading fees anytime they ship goods. A contract warehouse can
offer services at lower costs, and can often work with you to find the right
combination of services to fit your budget.
4. Control: On
the spectrum of warehouses, private facilities offer complete control with a the
highest cost, similar to buying a house. A public warehouse is more like
leasing an apartment, giving you little control. The contract warehouse serves
up the perfect compromise between control and cost. This allows many small
businesses to outsource their inventory holding and product fulfillment costs,
so they can focus on generating more revenue and other business critical tasks.
To reduce your warehousing and inventory control costs, check out the many great contract warehouse services available at PerimeterLogistics.com!