5 Benefits of Contract Warehouses

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!