In every enterprise, there comes a moment to decide which warehousing model to adopt. Should you invest in your own space, rent a warehouse, or perhaps use the outsourcing of warehousing services?
Edyta Holik, Country Sales Manager at 7R Solution: Many enterprises have their own warehouses located in the immediate vicinity of the production plant. Such a solution ensures efficient retrieval and storage of products, but at the same time, it involves high costs. Starting from purchasing the appropriate plot of land, building the warehouse, equipping it with high-bay racking and necessary equipment, to operational costs related to the building’s functioning. Importantly, an owned facility generates fixed costs regardless of the level of warehouse space utilization. Therefore, large production plants that constantly need a large amount of storage space usually decide to have their own warehouse. Other enterprises have the choice of renting space in warehouse parks or outsourcing, i.e., cooperating with a logistics operator.
Cooperation with the right logistics operator equipped with modern systems allows for planning work and processes in an optimal way, taking into account the specifics of the enterprise’s operations, its industry, seasonality, etc., in the cooperation. The logistics operator organizes full service in the scope of warehouse and transport logistics. The company does not have to worry about organizing its logistics and can devote more time to developing production or acquiring new customers.
By choosing a company providing outsourcing of warehousing services, we can be sure that it will comprehensively handle the logistics of our goods. Logistics operators have warehouse space in various cities, thanks to which they can flexibly adapt the location to the contractor’s needs. Warehouses are equipped with high-bay racking, appropriate forklifts for unloading and loading, as well as other devices necessary for order picking and labeling of goods. Using service outsourcing relieves the enterprise from activities such as rent and utility payments, building insurance, or hiring people to operate the warehouse.
Moving warehouse logistics outside the enterprise and commissioning it to a professional operator can bring significant savings. It allows avoiding costs associated with maintaining empty warehouse space, reduces labor costs, ensures reduction and greater control of operational costs, and risk diversification. Another advantage resulting from using outsourcing services from a professional operator is the advice of their team of experts, which directly influences the improvement of the quality of warehouse processes.