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How outsourcing your Northwest Arkansas warehousing and fulfillment can defray hidden costs

How outsourcing your Northwest Arkansas warehousing and fulfillment can defray hidden costs

With a growing number of retailers searching for more and increasingly profitable online solutions, the demand for warehouse space is at an all-time high. What smaller retailers are discovering, however, is that several hidden costs to warehousing hinder their potential profitability.

A poorly managed warehousing and fulfillment system is a common pitfall when companies start to offer both in-store and e-commerce options for products, making it often a better idea to outsource the warehousing operations.

By hiring a logistics company that already owns a warehouse to store and ship your products, you will help defray some of the hidden costs and will be more equipped to focus on other aspects of your business that are more intuitive.

Below are some of the hidden costs that you can avoid by outsourcing your warehousing to a logistics company, such as On Time Logistics.

Time (and labor)

The saying goes that “time is money” and that’s definitely true when managing a warehouse. The time that is spent fulfilling orders is both time intensive and labor intensive, which will both cost you money. By outsourcing to a professional 3PL provider, you can save money and the hidden hardships of trying to do it yourself.

Professional warehousing companies have techniques to properly and effectively manage their warehouses. For instance, slotting is a storage system that is used to maximize the space within a warehouse. Warehouse providers also use their Warehouse Management Systems to effectively slot and move the products stored in their facility. This dramatically reduces the time it takes to retrieve stored items.

Inventory management

Inventory management means knowing how much space you have open, where everything is, and how to best store those products. Managing your inventory well can make your business a success, while not effectively managing your inventory can sink your business. Warehousing companies, such as On Time Logistics, have effective inventory management systems already in place.

In particular, On Time Logistics’ online inventory management system allows customers to know what is in the warehouse, where items are going and at what rate. This system is already in place and having to create your own would take time and money.

Organization

As with all aspects of business, efficient organization is extremely important, and a warehouse is no exception.

It can be difficult to determine how a warehouse should be organized and how products are placed for maximum efficiency. This can be especially tricky for businesses with seasonal offerings where the inventory would ebb and flow throughout the year. Outsourcing any warehousing needs allows professionals to move within their own space and manage the space to the best efficiency.

We’re excited to see that so many small retailers are finding solutions to stay in business, including adding e-commerce options for their consumers. We want this trend to continue and invite any Northwest Arkansas company to contact us to discover how our warehousing and logistics services can make their business more profitable.

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