Wait! Don’t Build That Bigger Warehouse Just Yet

Is your warehouse space filling up fast?
Are you facing a maxed out warehouse, looking for any nook and cranny to use for storage?
Do you always need auxiliary space for new products or seasonal goods?

Granted, the economy is rebounding and a bigger warehouse makes sense in these situations. But while your first instinct may be to build a new warehouse or lease a building, you might want to consider another, more cost-effective option: Public warehousing.

Public warehouses, particularly those with a wide array of logistics services, allow businesses to expand their warehouse space without increasing their warehouse footprint.

Plus, outsourcing to a third party logistics (3PL) public warehouse, like Brendamour Warehousing, Distribution & Services, provides additional benefits.

In-House Versus Outsource Warehousing

Building a bigger warehouse, expanding an existing one, or leasing a suitable building comes with expenses that will exist even when there are times when sales don’t justify those expenses. Such expenses include:

  • Facility expenses to operate the building, including mortgage or lease payments, utilities, insurance, security, waste removal, grounds management, etc.
  • Staff expenses to manage the warehouse and perform all tasks associated with moving product in and out of the warehouse.
  • Handling expenses to handle goods, such as expenses to purchase, maintain, and fuel equipment, and initial investment and upgrade costs for a warehouse management system, automated equipment, and other equipment.
  • General administrative expenses to handle the additional volume of payroll, ordering, training, etc.

The rate of utilization is key to the bottom line and a real risk factor when expanding your in-house warehouse space. But with a public warehouse, certain expenses are eliminated and a payment structure is established where you pay only for the amount of space in use.

In addition, you have the option of using a public warehouse simply for storage or having the entire logistics and distribution operation handled from the 3PL warehouse.

Brendamour Public Warehousing Benefits

Because Brendamour Warehousing, Distribution & Services offers a full complement of logistics services along with its warehousing and distribution, your business can attain substantial benefits not realized with other warehousing options.

Among these benefits are:

Better Warehouse Technology because we invest in advanced technology, equipment, and systems. We stay on top of the latest technological developments in the logistics industry because we know it’s these improvements that increase capacity and put you above your competition in the marketplace.

With sophisticated warehouse technology and our automated equipment, we can provide flawless order fulfillment, and move your goods faster, more accurately, and inexpensively, with virtually no product damage or errors and omissions.

Plus, our warehouse management system compiles a great deal of information so you know where your goods are at all times and what your inventory levels are so your entire supply chain is optimized to its fullest.

Improved Productivity because warehousing, logistics, and distribution are the core functions of our public warehouse. We utilize best in class methods and equipment for moving goods along the supply chain. These practices allow for greater efficiencies without increasing labor.

Faster Inventory Turns that are driven by demand. After all, inventory that turns 24 times a year has a lower storage cost than inventory that turns six times a year. With faster inventory turn rates, your business will realize fewer inventory touches, increased customer service and customer response rates, and fewer returns.

Advanced Management of SKUs that are optimized to changes in inventory and storage layout. This allows us to expand the number of products stored in a cubic foot of storage area, thus lowering your warehousing costs.

High Return on Investment with savings across the board in warehousing, distribution, and logistics compared to performing these processes in-house.

If you’d like to learn more on how Brendamour Warehousing may be a better option than building a new warehouse, simply contact us to discuss any questions or concerns you may have.

We always welcome the opportunity to help businesses expand in the most cost effective and efficient way.

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