Manufacturing is a fast-paced industry with lots of moving parts. Warehouse services are an asset that manufacturers can utilize to lift or lighten the burden across several steps of the supply chain. What is outsourced warehousing? A third-party service that includes the storage, inventory management, and order fulfillment of a manufacturer’s goods.
The benefits of warehouse services are especially relevant for American manufacturing companies trying to compete with overseas manufacturers. In this blog we will discuss the top benefits of outsourced warehousing. Later, we will identify the characteristics of the best warehouses and discuss factors you should consider for your specific business.
Benefits of Outsourced Warehouse Services
What are the benefits of employing a third-party company to take care of warehouse services? Let’s discuss the reasons that outsourcing storage, inventory management, and shipping is a great idea for many businesses.
Warehousing Services Save Manufacturers Money
Warehousing companies can provide storage and fulfilment services significantly cheaper than a manufacturing business can on their own. Think about it, what do you need to operate a warehouse? These are the main expenses:
- The Warehouse (obviously)
- Machinery & Equipment (forklifts etc.)
- Racks and Shelves
- Warehouse Staff
- Security System and Personnel
- Technology and Software
- Additional Insurance
Why pay for an additional lease, purchase expensive equipment, and hire additional employees when a warehouse service provider can take care of everything for a fraction of the price? Outsourced warehouse services save businesses money and time, which can in turn be invested in more important things like innovation and growth.
Scalability & Flexibility
Warehousing companies are there to meet a business’s exact warehousing needs on an ongoing basis. With outsourced warehousing, storage is a variable cost. Manufacturers only pay for what they need when they need it. It gives businesses room to grow. If your business blows up overnight, third-party warehousing can help you keep up with the rising demand by providing more space and manpower! The opposite is also true, if things slow down, storage space can easily be scaled back so you aren’t wasting money. Adjustments in shelving and crating can also be made to accommodate shifts in inventory and new products.
Efficient Shipping
Storage and shipping flow seamlessly in a warehousing facility. When an order is placed, the item is quickly loaded onto a truck and shipped on site. It eliminates the need for the manufacturer to contact a transportation provider and schedule a pick-up time, maximizing the speed in which orders reach their destination. Plus, the best warehousing companies pack and store their inventory strategically to maximize efficiency.
Guide to Finding the Right Warehousing Service Provider
Now that you know the benefits of outsourced warehousing, it’s time to hop on Google, pick the first company that pops up, and give them a call, right? Nope, sorry it’s not that easy. But we’re here to make things a little easier by providing a list of things to look for and variables to consider when searching for warehouse services.
Security
While the warehousing company is technically liable if items are stolen, as a manufacturer it’s still important to know that your inventory is safe. Stolen items can lead to delayed or cancelled orders, angry customers, and lost revenue. Look for a warehouse that offers 24/7 surveillance, gates, and security personnel to keep your goods safe.
Climate Controlled Storage
Humidity, heat, cold, and temperature fluctuations can damage electronics, cause chemical changes, warp wood, grow mold, and cause important documents (such as instructions and manuals) to deteriorate. Even if you think your product can withstand the elements, it’s better to err on the side of caution and opt for climate-controlled storage.
Quality Transportation Services
Warehousing services aren’t worth much unless they are paired with quality transport. Ensure that the warehousing provider you choose offers dependable transportation and has the capacity to meet your needs.
Ample Warehouse Space
The outsourced warehousing model gives your business room to grow, but there must be enough physical space. Give your business some wiggle room by choosing a warehouse that has ample space.
Unique Needs & Expertise
If your business requires a level of expertise beyond basic storage, you’ll have to do some research to find the right provider. Flatbed transportation, custom crating, hazardous materials transport and storage, and oversized load transport are all examples of services that only select companies offer. Additionally, your goal shouldn’t just be to find a warehouse that can accommodate your needs, it should be to find a warehouse and shipping provider that has expert knowledge and experience.
Location
Choosing a warehouse with a prime location is paramount, but that doesn’t necessarily mean that a manufacturer should choose the warehouse that’s closest to them. Consider the warehouse’s proximity to major interstates, destinations you frequently ship to, and manufacturing sites to choose a warehouse that acts as a convenient and efficient hub for your business.
Warehousing that goes the Extra Mile
Rowe Transfer Inc. has been moving American industry since 1883. If you’re looking for a warehousing service, you will not find a more experienced or dedicated provider than Rowe. Our 50,000 square foot warehouse is climate-controlled and highly secure with 24/7 surveillance, RFID access control, and a secure gated entrance. We go the extra mile by building specific storage racks for each customer, this keeps goods extra secure and strategically uses space to keep prices low. Plus, we are conveniently located in Knoxville, TN near the intersection of two major interstates (I-75 and I-40).
In addition to warehousing, we offer expert rigging, custom crating, and of course, transportation. With a team of in-house engineers, the latest technology, and over 140 years of experience under our belt, we can accomplish things and offer a level of expertise that most warehouses cannot. In short, we can store anything, and move anything, anywhere. No job is too big or too small. Contact us to find out more about how we can support your business!