With the rise of e-commerce, warehousing services have grown exponentially in recent years. However, many small business owners and startups may feel that warehousing may be cost-prohibitive, especially in the company’s early days when operations are small. But warehousing services are not only affordable, but they can also actually help your business grow more quickly than it would otherwise.
When most people think of warehousing services, they generally envision large operations like Amazon. However, even small businesses can benefit from warehousing. These operations provide a centralized location for your products, which gives your business a place to receive orders, store goods, and ship products once they have been ordered. The entire process is systematic and optimized for efficiency. Warehouse personnel can identify the product, sort it, and send it while adhering to company policies or requests to ensure that the process is completed safely and securely. With these logistics taken care of, you can focus on getting more sales and growing your business.
But in addition to freeing up time for you to grow your business, warehousing services also provide additional benefits that may support long-term growth, such as:
- It can reduce inventory losses. Many warehousing service providers are highly automated, with scanning and identification occurring at every step of the process. These systems are very effective and often reduce inventory loss. Their specially-designed storage features (such as pallet racking systems or shelving units) can also reduce the chances of damaging your company’s goods and maximize profits. And since most warehouses have tight security measures, there is less chance of loss through theft.
- They provide products when customers need them. Anyone who has ever ordered anything online knows that expected delivery times can vary widely. But one of the best moves you can make as a small business is improving delivery times. Customers love when they get what they want before it’s expected. Effective warehousing operations can ensure that products get sent to customers without delays, and they can track the product until the order has been fulfilled, which keeps your customers happy. Unfortunately, when orders aren’t fulfilled quickly or with adequate follow-up, it can lead to lower customer satisfaction levels, which presents a big challenge for a growing business. Warehousing services are a great way to keep satisfaction levels high, which increases repeat customers, your overall business rating, and your ability to attract new customers. All of these benefits support the growth of your business.
- Improved efficiency and reduced costs. In the early days of any business, the owner has to make tough business decisions on how to reinvest in the business smartly. While warehousing services may seem like a high investment with little return, that couldn’t be further from the truth. Warehousing services are very cost-effective, and they can improve the efficiency of your business and reduce many of your current expenses. These companies can reduce the time it takes to retrieve and ship a product manually. They can also provide valuable feedback that can help you plan inventory levels and ensure you do not overstock or understock certain products (both of which can also be expensive mistakes for your company).
- You can optimize the timing of your purchases. Most small businesses still need to order supplies and materials. With a warehousing service, you can buy in bulk when the prices are right and only pay for shipping once, saving money over the long run since you can wait for the best deals. And this method also ensures that you will have the material on hand when needed.
- You can grow your business smartly. As many companies go through periods of growth, they often have a good idea of a strategy. However, the growth strategy can be greatly enhanced when data support it. For example, warehouse service companies can collect data about your inventory, ensuring you can make production plans and ensure you are stocked adequately. Essentially, the data provided by warehousing services ensure you are putting resources into the right products and strategies. This type of smart growth optimizes resource allocation and can help your business continue to grow.
Warehousing services provide many benefits for small businesses. In addition to these benefits, warehousing agreements are often flexible, which ensures that you have the opportunity to revise the agreement when you are ready – and expand at your own pace. This flexibility prevents you from paying for resources you don’t need prematurely. Contact Dawson Logistics today to learn more about how warehousing can enhance your business!