Warehousing costs have skyrocketed as demand for storage soars and labor and utility costs climb. These expenses show no signs of slowing down, and warehousing is now a major cost center for many businesses. It’s causing them to look for less-expensive solutions, and the smart answer may be professional warehousing services.
Whether you are a startup seeking storage space or an established business outgrowing your warehouse, outsourcing your warehousing needs to a third-party logistics provider could significantly reduce costs and increase efficiency. Here’s how.
How Third-Party Warehousing Services Help You Cut Costs
Want to reduce operational expenses without sacrificing efficiency? It sounds like a business pipedream, but it’s possible with 3PL warehousing services. A warehousing provider can deliver substantial cost savings in several key business areas.
Reduced Overhead Costs
When you partner with a 3PL, you can eliminate the substantial cost of owning and maintaining a warehouse space yourself. Not only can you avoid renting or buying the physical space, but you don’t have to worry about property taxes, utility bills, building maintenance costs, insurance premiums, or equipment like forklifts and shelving. That’s all money you can put right back into other areas of your business.
Fewer Labor Expenses
Warehouses don’t run on storage space alone. They require a lot of manpower to keep them running efficiently for tasks like receiving, storing, picking, packing, and shipping. You need a dedicated workforce for all of this, which means you have to hire, train, and manage a staff just for your warehouse. It’s time-consuming and expensive. A third-party warehousing provider will already have an experienced team, saving you the hassle and cost of labor management.
Better Inventory Management
Inventory management is an art. If it’s not already in your skill set, it may not be an art you have the time, money, or energy to learn. Professional warehousing services use advanced inventory management systems and logistics experts to optimize your stock levels. A 3PL warehousing team can help you reduce inventory costs, avoid lost or damaged goods, and improve order fulfillment by accurately tracking and predicting inventory needs.
Why They Can Do It Cheaper Than You Can
Outsourcing your warehousing services may seem counterintuitive at first glance. Controlling your inventory in your own space should give you more control over your costs … right?
Wrong. In many cases, third-party warehousing can offer significant cost advantages over in-house operations thanks to:
- Economies of scale. 3PLs handle inventory from multiple clients in a single warehouse, which allows them to negotiate better rates on transportation, packaging materials, and other warehousing services. Volume-based pricing often translates into significant savings for the client.
- Investing in the right tech. 3PLs invest heavily in warehouse management systems and automation technology. These tools can streamline operations, reduce labor costs, and improve efficiency. You get the perks without paying for the tech on your own.
- Specialized expertise. Warehousing is the 3PLs core competency. They have years (and often decades) of expertise, and their focus allows them to manage a warehouse more efficiently and effectively than many businesses can. A 3PL knows how to reduce waste, minimize costs, and optimize warehousing processes.
Still not convinced that a 3PL could be cheaper than your current warehousing costs? Consider getting a quote on warehousing services from some trusted third-party logistics providers and see how much you could save.
Let Beitler Logistics Services Save You Money on Warehousing
A warehouse is a lot more than a storage space. It’s the nerve center of your supply chain and requires a lot of time and investment to keep it running smoothly. If something goes wrong with your warehouse, it can create a ripple effect on the rest of your business, resulting in unhappy customers and a hit to your reputation.
But that doesn’t mean your warehouse has to be a major cost center for your company. By outsourcing your warehousing needs to Beitler Logistics Services, you can enjoy all the benefits of a well-run, efficient warehouse with lower overhead costs. Our warehouse management expertise, trucking services, and logistics experience allow us to deliver exceptional value for your money.
Want to learn more about our tailored warehousing solutions? From inventory management to order fulfillment, we can handle it all. Contact Beitler Logistics Services today for a free consultation. Let us show you how we can help you cut costs and improve your supply chain.