5 Reasons to use third-party warehousing solutions

Logistics Technology
Supply Chain Optimization
Inventory Management
Cost Reduction

Table of Contents

If you are a small business owner, you may overlook the preparation of the products, packaging, storing, and finally shipping the products to their rightful recipients. The whole process can quickly get messy when many orders come in. Between all these processes, you may need more time to strategize and decide how to scale up and move your business order. That's when third-party warehousing solutions come to your rescue.

1. It helps you save overhead costs.

When you hire a third-party warehousing solution, you can cut some overhead costs like rent for storage space, labor costs for handling the products, and even the transportation cost for transporting your products from the factory to the warehouse. All these can be reduced and will be taken care of by the third-party warehousing solutions provider.

You have to monitor the efficiency of these solution providers and see if they are effective in packing and shipping the items from the warehouse on time. Further, ensure they keep a good paper trail and file all the billings. The inventory process becomes much easier as you no longer have to do it yourself. Instead, the provider will notify you when you have low inventory, and that's when you have to step and do the necessary to stock it up.

2. Have the power of experts in your hand

The third-party warehousing solutions providers are experts in knowing the best practices of warehousing and logistics. They carry out their work in the most effective way to reduce any additional costs. When you hire them, you have an expert in your hand that will help you figure out the best warehousing and shipping that's perfect for your business.

Further, they will also have the most modern software and technology in hand, like the vendor management system that will give you real-time updates on the inventory and alert you when you need to stock up. Further, the software is excellent for grasping the shipping status.

With this professional assistance, you can easily invest your time to upscale and better manage your business.

3. Equip your business with a robust resource network

Go for a leading third-party warehousing solutions provider, as they will always have in touch with some of the most reliable resource networks, which you can tap in to stay ahead of your competition.

They will have a good relationship with these resource networks. Thus, you may also get some volume discounts and even faster service, which ultimately helps you save some overhead costs.

4. It helps you stay away from long-term leases.

If you want a warehouse to store your goods, you will have to rent it out for the long term, and a contract will bind the whole deal. So even when you have a low volume of orders, you will still have to pay the rent as per the contract signed, which is a massive burden on your business.

With third-party warehouses, you only pay when you utilize the services, and you can quickly scale up or scale down the costs per your requirements. So if your business were to blow up, the third-party warehousing solutions provider could easily handle that.

5. It helps you provide better customer service.

These third-party warehousing companies are professionals; therefore, they treat your packages as their own during the air freight and handle them with utmost care. Further, they are adamant about shipping and delivering the products on time, so your packages will reach their respective recipients on time. Even if there's a delay, they will report the same beforehand, thus, ensuring that your customers aren't disappointed.

The companies take utmost care while packaging the products and make sure that they deliver them to the appropriate parties. It also reduces the percentage of claims and ensures little to no returns on your products.


Final Thoughts

Those 5 reasons should be compelling enough for a third-party warehousing solution. To sum up, their services are transparent, and time is highly valued. Therefore, you get plenty of time to strategize while your business blooms and your customers are always happy.


Most popular

Receive monthly news and insights in your inbox. Don't miss out!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.