In this day in age, there has never been more pressure for manufacturers to lower costs and enhance productivity. Determining the best way to manage logistics, distribution, product storage, and procurement is the best way to increase productivity and improve workflow.
Here’s how warehouse storage and inventory management can help you boost your bottom line.
- Expansion Opportunity – Outsourcing your distribution and storage to a warehouse gives you more space to focus on expanding your business.
- Production Support – Consistent, timely production can dramatically improve your lead times. Managed warehouse facility options have transport logistics expertise and warehousing space to safely store your goods until you need them.
- Processing and Packing – Today, distribution centers and warehouses come with a lot more than simple storage of your products. A great warehouse will also provide packing and shipping services, along with inventory management.
- Price Balance – Choosing to warehouse your goods ensures a regular supply into the marketplace and the ability to store those goods when supply happens to exceed demand. This helps to keep prices stable in a shifting market, making it easy for businesses to determine profit and losses and forecast production needs.
- Financing – Warehousing your goods may also be able to help with potential financing arrangements because the company owner can borrow money against the security of good or materials located in the warehouses.
- Spot Stocking – One of the greatest benefits of warehouse storage is the ability to visually see when you are running low of products. This method of ordering goods is especially useful for season products that you won’t need all year round. Some companies, such as those in the agriculture business, take this a step further by stocking certain warehouses in specific locations at certain times during the year, depending on need.
- Minimize Business Risk – Last but not least, the warehouse owner often insures items stored in a warehouse, giving you extra protection against your inventory. Off-site warehouse storage has been known to reduce inventory loss from damage, fire, and theft.