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How Warehouse Outsourcing Can Cut down Your Costs

December 6, 2019 Warehousing

Starting out a new business or improving your business logistics? Warehousing is one of the most crucial elements of your business process. This is vital in improving your production efficiency.

The logistics of warehouse production is changing. Business is booming and needs to grow faster as time goes by. This also means the cost of warehousing solutions will go higher and higher.

Enter warehouse outsourcing. This is one of the most essential solutions you can do that can save you money, but how?

In this guide, find out how you can outsource your warehousing and cut your costs. From its benefits to its cost efficiency, this can give you what you need for your success.

1. Simplified Warehouse Operations

The best, most important benefits of warehouse outsourcing is to simplify your operations. Outsourcing moves the burden of warehouse production to your warehousing experts. You don’t have to handle anything at all, rather have your logistics team do it for you.

All their resources are at your disposal, so you can get a better, faster warehousing solution. Instead of your company taking over responsibility for coordinated operations, they do it. From coordinating shippers, carriers and other providers, you can outsource everything.

What does this mean?

From the logistical operations, regulation handling, policy handling, and even schedules, you don’t need to waste resources on them. All you need is to pay and you’ll get your cargo moving from Point A to B – the only thing that matters.

2. Using Logistical Expertise For Business

Many companies don’t allocate financial and human resources to warehousing. Logistics fulfillment providers have superior experience in handling logistical challenges. They understand the intricacy of supply chain management more than anybody else.

The expertise they have in the field of warehousing is something you need. Their knowledge is useful to improve your business efficiency in this field. You can get many different benefits from their expertise.

First, you can get a higher level of service that would need years before you can optimize. They can also help cut down on your fulfillment rates and fulfillment time for the business. This creates a better turn around time, which results in more profit down the line.

Their trained team of experts will be ready to help you with what you need. You will get the expertise that years of experience can give you without training. As supply chain management is a hefty task, it’s better to let people with expertise work it out.

Outsourcing your warehouse ops to a specialist company puts it in good hands. They know how to solve problems that will arise, so you and your customers are happier down line.

3. Scalability

Using a third-party logistics (3PL) company offers you enough flexibility. They can help you set up your distribution model and scale it up and down as you need it. As your operational demands shift, you can then scale higher or lower whenever you want.

Scalability of operations gives you an option to enter new markets. All this can happen without creating mammoth starter operations. 

The size of your service to customers is always in proportion to your logistics. With 3PL teams, you decentralize distribution and offset costs like transport surcharges.

With a warehousing specialist, you also get better flexibility in your inventory management. You don’t have to justify to yourself that you need to fill up your entire warehouse to make its worth. This means you can maintain a level of inventory stock that you want, not what you need to fill.

This level of flexibility gives you a chance to handle your inventory fluctuations. Whether you’re having a peak season, stronger total demand or on a low down, you have enough.

4. Better Location and Distribution Channels

One of the most vital elements of warehousing and distribution is location. Location is always something vital to everything that you do, especially for national distribution. Working with a third-party logistics provider can help you be in more places for less.

Many 3PL companies will have a good presence in many different distribution points. This can help you reduce your time around red tape, especially in airports and logistics hubs. They can get you better transport options due to better location, increasing your lead time.

Centralized locations, when you combine it with their warehousing and distribution options, work. Having locations near customers, vendors, and even production facilities lead to major savings. You would need to push less money towards your transportation costs.

5. Zero Human Resources Training Costs

One of the biggest cost issues when handling logistics is the people. To manage a medium-sized operation, you need an entire fleet of low-level employees. You would also need logistics managers that have the experience to handle the job.

Logistics operations managers, for example, would set you back $70,000 per year. For small to medium businesses, this is not possible. This doesn’t count all the equipment, training, insurance, and even updating their skills for your needs.

You better invest the money you will spend on logistics employees to the growth of your company. If you consider this, it’s better to get a 3PL providers to handle your logistics labor management. You don’t have to pay for everyone, instead you are paying for the service.

3PL provider outsourcing cuts down your capital expenditures. You don’t waste your money handling and investing in something that doesn’t lead to profit.

Letting others handle logistics gives a significant reduction in direct and indirect labor costs. Again, this is more money down the line for your business. This adds to your bottom line, which can help your business grow more.

Invest in Warehouse Outsourcing Now

When it comes to your business, investing in warehouse outsourcing can give you long-term benefits. It can cut down your cost margin and let them handle what doesn’t contribute to your bottom line.

If you’re looking for one of the best courier and warehousing service providers, you need someone you can trust. 

Talk to ASAP Courier now and enjoy the benefits of warehousing experts on call.