Can Your Company Benefit From Using a Warehousing Service?

If you sell anything based on an inventory, you know the struggle to create the right amount of goods to keep up sales while not wasting money and space storing unsold products either. How can you manage your outgoing inventory in a way that will minimize the risks of overproduction, lack of space, perishable goods, delays, and business cycles? 

One cost-effective answer for many growing businesses is to use a warehousing service. What is a warehousing service and how can it help you?

Warehousing simply refers to the practice of storing inventory or materials for any length of time between the receiving, manufacturing, and shipping steps. Any inventory-based company already performs warehousing by storing goods — no matter whether it's a large inventory or just a small one. 

However, there are many reasons why a company might want to outsource their storage or fulfillment operations to better meet demand, save money, or focus on different parts of their business. The answer is to hire a warehousing service, which provides space and logistics assistance to receive, store, manage, or ship materials. You can often choose from a menu of services according to your budget and needs. 

If you currently keep your inventory in an owned or leased space, what are the advantages of using a third party instead? There are several, each of which may solve a particular challenge for small businesses. 

Warehousing is easily scaled. As your business grows, you likely will need additional storage and shipping space. That calls for remodeling, buying new space, moving, or leasing additional warehouses. Any of these solutions takes time, investment, and training. Warehousing companies already have the space and logistics to quickly respond to growth — or to scale down during cyclical times.

Warehousing can stage goods. Does your company want to expand into new territories, either domestically or internationally? In the modern competitive market, you'll need somewhere to efficiently stage goods for fast and effective delivery. Most small businesses can't afford to buy, build, or staff multiple facilities to reach different customers. Warehousing services are already in different markets and ready to go.

Warehousing covers special requirements. Do you buy or sell anything — or will you, in the future — that's perishable, potentially hazardous, or sensitive? Then that inventory may need special attention, such as refrigeration, express management, or special documents. Because they work with all types of companies and goods, warehouse services offer more choices and flexibility than most small businesses can do. 

Warehousing companies have expertise. In a small business, your inventory and shipping personnel probably wear many hats. And while they may have experience with common transportation or logistics issues, can your company benefit from having a team of professionals whose sole job is domestic transportation, passing through customs, shipping strategies, or inventory flow?

Does your growing business already face any of these particular challenges? Or will you need to handle new products or materials in the future? Do you plan to expand into new or unfamiliar areas? Does your inventory size significantly change according to a business cycle? Or do just need to save money and find ways to streamline your operation?

No matter which of these questions you answer yes to, warehousing could be a simple solution. Look for a qualified service with experience in your industry. At JBS Logistics, we can help with everything from managing to packing to distributing your inventory. Call today to learn about the variety of services we provide and how they can boost your bottom line.