Storage outsourcing is becoming increasingly popular, especially with online retailers. Businesses, both big and small, are finding that having a dedicated storage facility can prove to be more cost effective than holding the stock themselves.

As an established business grows it is often a viable option to outsource storage rather than move to a new location. It may be that you have seen an increase in orders, or it could be that you are thinking of introducing new product ranges; either way, you are going to need more space.

Equally, many start-ups are opting to outsource their storage right from the start. Storage facilities that also offer order fulfilment can be the ideal solution to someone thinking of starting up an online retail business. A warehouse that will hold, pack and process your stock is an attractive option for someone starting a business from home, where space is at a premium.

So, now we’ve seen some reasons why companies at differing stages of growth may outsource storage, let’s take a look at the pros and cons:

Pros

  • Cost Efficient – Renting storage is less expensive than moving to larger premises.
  • Frees Up Space – Can be used to store overstock, meaning you can hold a wider range of products.
  • Convenient – Immediate access to your goods allows you to restock at will.
  • Short Term Fix – Outsource storage for busy periods such as Christmas.

Cons –

  • Perishables – General warehousing is not suitable for perishable products. However, cold storage may overcome this problem in some cases.
  • Goods offsite – you will need to travel to access your stock
  • Scarcity – The more popular outsourced storage becomes, the harder it can be to find one close enough to your business.

These are just some of the points to consider if you are looking at outsourcing. If you think your business can benefit, then please feel free to give us a call. We’d be delighted to speak to you.