5 Ways Outsource Warehousing Can Benefit Your SME

There are several reasons why outsourcing your warehouse needs to a third-party specialist is a good idea, and that’s especially true for SMEs.

You might have already reached such a conclusion if you’ve been handling your own warehousing functions. You could be coping with some harsh situation, like not having the capital to invest in warehousing space and workers when considering this option. However, there’s a lot more to it.

You should take into consideration all this if you’re a small-to-medium enterprise owner! So, to elaborate, here are 5 ways outsource warehousing can benefit your SME.

 

A young man working in a warehouse
Shared Resources

One of the main reasons why 3PW companies are a better choice for SMEs is that you won’t be their only customer. These companies provide warehousing solutions to several other businesses, and the costs are shared among them, as well as the resources. If you need to flexibly scale up your rented or leased space, you don’t risk paying substantial costs. The space is shared across, and so are the costs. So, you only pay what you use.

Professional Management and Compliance

Warehouse work requires a number of various legal, safety, and health regulations that need to be mastered for the operation to run. Dealing with such regulations can quickly become cumbersome for SMEs that are navigating them for the first time. 3PW (third-party warehousing) companies already have an operation running for far longer, and hence, they can easily implement safety and regulatory protocols.

Capital Costs

There’s a whole host of different equipment and devices required to run a warehouse effectively. From pallets and racking to forklifts and safety barriers, there’s a lot to invest in if you attempt warehousing yourself.

Aside from these substantial fixed and variable capital costs, hiring a warehouse staff and managers can add to your expenses. 3PW companies already have this under their belt. Outsourcing your warehousing needs can, therefore, reduce your up-front and on-going costs by a lot!

Focus on Your Core Business

All SMEs selling physical products require some storage space. Warehousing for such SMEs falls under “non-core” operations, and this does not directly relate to their work or their profits.

If your business falls under this category, then managing your own warehousing will present a lot of overhead costs and take up valuable time, especially if you’re steadily growing.

This time could be better spent focusing on your core competencies and improving the product itself, which is in the main more crucial. By outsourcing your warehouse requirements, you can free up the resources, money, and time, and direct it towards growing your business.

ROI and Long-Term Savings

As we’ve mentioned above, reducing your warehousing costs by going with an outsourced 3PW provider can increase your savings. This should allow you to see a noticeable return on investment (ROI).

When seen in the long-term, these savings amount to a lot of money, which can be used to finance critical areas of your business. 

If you’re still unsure about choosing a third-party warehousing provider, get in touch with our friendly and informative team at LogistCompare. We are the largest network of warehouses in the UK, and our smart logistical solutions also ensure that you get end-to-end support on all your warehousing needs!