Walt Disney once referred to the real estate he had bought in central Florida as “the blessing of space.” Ample room to grow, room to expand, and even just room to breathe remain important and abiding considerations when planning your logistics operations. Sufficient warehouse space isn’t just a matter of having enough room to store all your product inventory, either. Having room to move around and to be comfortable is a safety consideration, one that’s mandated by federal regulation and that also protects you against costly lawsuits and lack of valuable labor personnel.
The High Costs of Warehouse Fulfillment
To briefly sketch the number of expenses associated with owning and maintaining your own warehouse space, consider the following physical costs: there is the rental of the space itself, or the mortgage if you own the property and the building. If you own, there’s the additional costs of taxes on the property. Add to these costs the rising prices of public utilities such as electric and water, prices that vary wildly depending on local climate and also the seasonal time of the year. All these costs include only the expenses incurred from having a warehouse. Staffing it with qualified workers requires training costs, the costs of advertising for labor, interviewing, payroll fulfillment processing, and lastly also payroll taxes. With so much to pay for, it’s sometimes a wonder that business can afford to move forward with their growth and achievement plans. They are literally “running to stand still.”
Why Not Outsource?
By outsourcing all your logistics management and order fulfillment needs to a third party, independent company, you’re able to free your business operating costs of all the expenses listed above at the same time you boost productivity, cost-effectiveness, and order reliability.
Independent service providers have assemble teams of experts who specialize in refining and streamlining the order fulfillment process, constantly improving and upgrading procedures and systems to make them better and more effective for their client businesses.Fulfillment service companies employ and train their own staff, so there’s no need to spend hours recruiting and training your own labor force. This staff accepts your business’ product inventory directly into the service provider’s own state of the art and climate-controlled warehousing and processing center. By centralizing all the steps required to process client business’ orders, the fulfillment service company boosts efficiency while at the same time streamlining the process so as to create a minimum chance of error.