Is Third Party Warehousing Appropriate for your Business?
When you are in the business of supply chain management, there are number of options to consider when it comes to warehousing. On of the options is having your own houses that you will be storing your products. If you go for these option you will be required to have your own trucks and shipping procedures, which will be used to transport the products to your clients. These kind of warehousing is mostly ideal for big companies, that have many products throughout to supply to their customers.
Third party warehousing is another option. Considering the many public warehousing available, both small and large businesses can use them. For most businesses it is ideal since it is cost effective. If you ship large tons of products and you will always require some where to store them, third party ware housing is ideal. It can also accommodate businesses whose goods for storing in the ware house changes over time may be monthly, quarterly or yearly.
As much as third party offers flexibility, its cost effective and suits most businesses. It recommended to first learn if it will be the best option for your business.
If the volume of your production changes from one time to another, third party warehousing will be ideal for you. Considering the flexibility of third party warehousing, you don’t have to sign warehousing contracts to cover periods when you would be using the warehouse. You will just be required to pay for the warehouse the duration you use and depending on the space that your good will occupy in the warehouse.
In case you want to know where you good are at a particular time, this is very possible with third party warehousing.
Third party enables a business to save when it comes to money and time. You can make sure the warehouse is either located close to your business or near your customers. Having the places close to one another, one can use them in doing other activities.
Third party allows businesses to outsource some of their supply chain management activities from them. People in the warehouse are usually well trained to carry out most activities in supply chain management. You can concentrate on other work in the business as the warehouse handle some. Knowing that some functions are been ran by the third party warehousing, as a business owner you will have peace of mind that everything is going well, since they are experts.
People that you have used or are using third party warehousing can give you referrals of which company they have used or they are using. From the websites of third party warehousing, you can learn more about them and the services they offer. From the reviews and ratings, you can know how efficient a warehouse company is. Past clients usually comment on how their experience was, dealing with the company.