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Warehouse management can be a huge commitment of manpower and money for a business. It can also be a liability when problems arise such as late shipments, damaged products, or legal issues associated with non-compliance with regulations. External warehouse companies provide their clients with several advantages that can conserve the clients’ resources and give them a better position in competitive markets.
Warehouse Companies Free Up Their Client’s Resources
When a business hires an external warehousing company to handle their warehouse logistics, the warehousing company takes responsibility for every aspect of the business’s warehousing – from the moment after the sale to the successful delivery to the customer. The business that no longer must allocate its own resources to warehousing can focus on other business-related matters.
Warehouse Companies Have Better Experience and Resources for Warehousing
Warehouse companies are specifically trained and equipped to handle warehouse-related activities such as inventory management and shipping. In addition, they are better equipped to adapt swiftly to dramatic changes in a business’s customer activity or changes to their products. The efficiency of an external warehouse company directly leads to increased customer satisfaction and decreased costs.
Hiring a Warehouse Company Reduces the Business’s Risk
External warehouse companies are specifically trained and equipped to ship physical products to customers. In addition, the warehouse company will bear the brunt of the risk and damage when warehouse-related complications arise. For example damage to a warehouse is less severe when the business does not have to pay to have it repaired or replaced.
Warehouse Companies Adapt More Quickly to Warehouse-Related Technological Advances
Technology changes how companies can manage, track, and ship inventory. Fuel-efficient vehicles, QR codes, and a variety of inventory-related software – and their respective upgrades and patches – are examples of innovations in warehouse management. External warehouse companies are better equipped to keep their technology current and their staff trained due to their experience and business model.
Warehouse Companies Are Well-Versed in Applicable Laws and Regulations
There are tens of thousands of laws, regulations, and rules that govern how physical goods are stored, handled, and shipped. The laws governing inventory control become stricter – and the penalties for non-compliance grow higher – for hazardous or dangerous products or materials. External warehouse companies are knowledgeable in these laws, and they model their physical locations and train their staff to be compliant.
Warehouse Companies Can Report Trends to Their Clients
External warehouse companies can analyze data from their operations, compile it into simple-to-understand reports, and deliver their findings to their clients. The information that the external warehouse company provides can help the business adjust or handle a potential problem proactively instead of reactively.
Warehouse Companies Save Their Clients Time
Businesses that do not already have significant experience and physical resources pertaining to warehouse management stand to spend a large amount of time to build warehouses, train employees, and maintain their warehouse operations. Hiring an external warehouse company frees up a significant amount of time for the business, which can focus on other business-critical tasks.
Warehouse Companies Save Their Clients Money
In addition to the time savings associated with hiring an external warehouse company, external warehouse companies save their clients’ money. Businesses will not need to pay for purchasing a warehouse, acquiring assets such as forklifts and shipping vehicles, and training employees when they hire an external warehouse company that already has facilities, equipment, and employees ready to work.
Businesses that ship physical products to their customers can fall behind – or even go bankrupt – when they try to establish and manage their own warehouse operations. Hiring an external warehouse company can prevent most warehouse-management-related problems, mitigate problems that cannot be avoided, and free up the business to invest more time and resources in other business activities such as talent acquisition and marketing.
