When it comes to your supply chain, every decision you make takes into account what you will be investing and your ROI. This is true when deciding between internal and outsourced warehousing. For some businesses, choosing to keep their products stored “in-house” is ultimately the better choice. For others, there is a huge amount of savings (time and money) attributed to outsourcing warehousing capabilities to 3PL companies.
When warehouse insourcing is right for you
If you have the capacity to keep your products in a warehouse that your company owns and operates, there are a few key benefits:
- You maintain full control over the handling and flow of your goods.
- You personally see to it that your customers are satisfied and their expectations are met.
- You can oversee security of your items.
If one of your company’s core competencies is warehousing, then insourcing may be better for you. The only time you may need to consider outsourcing is if you experience a higher than usual influx of orders and are immediately unable to fulfill orders or store products without the help of a reliable third party logistics provider.
When warehouse outsourcing is right for you
Warehousing (and ultimately fulfillment) require a huge amount of precision, expertise and resources to function properly. There is a lot of room for error, and companies should avoid a do-it-yourself approach if they aren’t familiar with warehouse layouts, pick-and-pack processes, security and even carrier relations.
There are many benefits to outsourcing your warehouse operations:
- You can shift resources and manpower to other areas of your business.
- You assume none of the risks associated with housing products.
- You leave warehousing to a company that specializes in that area of business.
- You no longer pay rent, salaries and other costs associated with warehousing.
There’s an old saying in business, “do what you do best, and outsource the rest.” Outsourcing your warehousing will allow you to focus on product innovation, customer service and building the front end of your business.
Learn more about 3PL warehousing
Before you hand over control of your warehousing to any company, make sure you understand what exactly goes into outsourcing warehouse and fulfillment services. If you have questions, our team at King Solutions has the answers you are looking for. Contact us today to have a quick conversation with one of our specialists.