Warehouse outsourcing, does this make business sense?

outsourcing warehouse fulfilment

Most retailers and online ecommerce stores get to the point where they have to assess their fulfilment and warehouse requirements. This maybe due to climbing overheads, or that your business is growing at an un-expected rate resulting in not having the warehouse space, or infrastructure in place to deal with the change.

Dealing with this and remaining competitive to an ever-growing market can be a tough balancing act.

So… does outsourcing your warehouse and fulfilment to a 3rd party make business sense?

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Overheads

We know running your own warehouse is expensive. Staff, property, rates, IT, forklifts, security, health and safety, insurances, racking… the list goes on. Outsourcing your warehouse cannot only remove the daily grind of the above, but can also hugely reduce your overheads as typically you only pay for what you use.

Carrier costs

This is where warehouse outsourcing and fulfilment really makes sense. Finding a cheap and suitable courier for all your different size and shaped goods of varying weight can be time consuming and quite often… expensive. But due to the vast amount of packages a fulfilment company may send each day, they are able to pass on their discount to you.

Warehouse flexibility

The warehouse is a necessary evil for all retailers and ecommerce businesses. Rapid growth and an increase in overheads is something always looming over us. But with outsourcing this is something you can take control of quickly. To put it simply, you pay for what you use. No rents to quibble, no staff to source just add/remove stock. As your footprint grows, so does your business.

Fulfilment

What if you could concentrate on making money, instead of spending it? Outsourcing your warehouse fulfillment does just that! While you are reaching out to your customers, your product is being picked, packed and sent directly without you lifting a finger. The entire process is automated from the moment the customer purchases your product. All whilst keeping your costs low, and customers satisfied.

Managing returns

Processing returns is a job we all struggle with. Un-boxing items, checking, re-boxing, re-stocking can hugely impact time. Most outsourced fulfilment companies will have a dedicated team to deal with this on your behalf. Be sure you cover this cost at the start of your partnership.

Importing

If you, like many online retailers import your goods from overseas, be sure to ask the potential fulfilment company you are looking to outsource to, if they can deal with this direct on your behalf. Fulfillment companies like us can deal with anything past the point of sale. Paperwork, import tax, scheduling and collecting once landed. This again can really reduce the headache and time spent when you can concentrate making sales.

Stay in control

It is important to maintain access to everything that is happening with your stock at anytime. Online stock/reporting systems are key to keeping your finger on the pulse of your business. Being online, these can be accessed from anywhere to keep you up to date in real-time. Tracking parcels, minimum order alerts, stock movement and detailed reports should be accessible 24/7

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 So.. does warehouse outsourcing  make business sense?

Outsourcing warehouse and fulfillment duties really depend on your business circumstances as to whether this makes business sense or not.

What you should not do, is shy away from is finding out… It may seem daunting and time consuming, but really, the process can be quite quick and painless.

If you would like to know more about how we operate, costing’s and how we can implement any of the above, please feel free to get in touch from our contacts page.