7 good reasons for outsourcing your warehouse

I have learned, amongst others, that several companies consider outsourcing their storage function to a supplier, but that they are often slightly concerned prior to taking the plunge. This is justified because there are doubtlessly many aspects to consider before making a decision.
In my view, however, outsourcing warehouse needs offers a large number of advantages of which I always make the companies aware. These are reasons which I would like to also share with you who consider outsourcing your warehouse function to a warehouse hotel.

1. Variable costs
With flexible rental and handling costs, you only pay for the storage space used for storage and the human resources used for the warehouse tasks. These are noticeable savings on your bottom line.

2. IT systems creating transparency
The vast majority of professional warehouse hotels have IT systems which offer logistics analyses of both the flow of inventory, activity and information analyses. Analyses and optimisation of inventory flow provide you with an accurate overview that minimises waste. At the same time, you always have the option of viewing the current inventory status. By outsourcing your warehouse facility, you have free access to these systems without having to develop or program them yourself.

3. Strategic locations
If you are not satisfied with your current location, you may do well to outsource your warehousing needs. This allows you to choose a new location which makes better sense to your business or your customers. You have the option of, for example, find a warehouse hotel which is located near the motorway network or near ports, if you are in close cooperation with them.

4. Modern warehouse facilities
By outsourcing your warehouse function, maintaining warehouse facilities and continuously replacing equipment is no longer your responsibility. This will be the task of the warehouse hotel.

5. The future of own employees
As a business owner, you have natural concerns about the future of your employees. Often a transfer of undertaking agreement is entered into to allow the employees to retain their seniority and continue in their jobs.

6. Wide range of storage skills
Warehouse hotels typically employ staff with skills in both emptying of containers, receipt of goods, order dispatch and preparation for shipment. Feel free to also leave the transport to the warehouse hotel to ensure that your goods are in good hands from start to finish. This also improves your opportunities for having your goods returned.

7. Food storage
Even if your business sells food, you should not be afraid to outsource your warehouse facilities. Many professional warehouse hotels have permits allowing them to store and process food strictly by the book.

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Written by Torsten Richard Hermansen
Warehouse Hotel director, Danske Fragtmænd A/S