If you run a business dealing with physical merchandise, you must set up a supply chain. However, this is usually a big challenge for a small business because of the storage function. Leasing a space purposely for storage is inefficient and costly. This is where a commodity storage warehouse can help you out. A commodity storage warehouse specializes in keeping your items safe and secure until you are ready to use them or sell them to other companies that need the product. What advantage does this arrangement offer your business?
1. Reduced Storage Risks and Insurance
Self-storage has inherent risks like fire, theft, flood, and spoilage. For a small business, losing inventory can be catastrophic. A merchandise storage warehouse helps you manage these risks by handing over this function to a specialist.
Warehousing services offer insurance options to mitigate these risks. With their damage protection plan, warehouses can replace inventory if it's damaged by fire or theft and will try to recoup funds for business interruption costs.
2. Cost-Efficiency in Renting Warehouse Space
Commodity storage warehouses allow you to rent warehouse space by the pallet. For example, if you only need to store merchandise for three months and then bring it out, you can choose from time options and rent space only when you need it. This is much more cost-efficient than leasing warehouse space for an entire year. You use the space only when you need it.
3. Easier to Scale Up or Down
Is your business growing so fast that handling inventory storage is becoming a problem, or are you winding down and need to downsize? A commodity storage warehouse can help you with both. It's easier to scale up when you can arrange for space in a short time. You don't have to worry about renovating your building to create space.
4. Facilitate Easier Expansion in New Markets
It is easier to expand into new markets when the goods are closer to your new customers. When using a merchandise storage warehouse, you can find space in an optimal location where your distributors can get supplies easily. Faster order satisfaction translates to happier customers and faster growth.
5. Better results with 3PL services
Engaging third-party logistics (3PL) providers is advantageous for small businesses without the resources to set up a supply chain. For example, they can help you reduce your transportation costs by offering space on their trucks and providing pick-up and delivery services. Most 3PL services offer warehousing services or work with a warehousing partner. Your business will see better results by using these specialists.
Safe storage plays a key role in any business' supply chain, so you must seek to optimize it for business operational efficiency and customer satisfaction. Contact a storage services provider to explore how to use a commodity storage warehouse in your business.