How To Save Money By Hiring A Storage and Distribution Service
As a business owner, one of the major expenses that you bear every year is storage and distribution. But you can make substantial savings by outsourcing these services. Not only will this help you reduce expenditure, but also free up some warehouse space. There are several transport companies out there that offer storage and distribution services for anything from one pallet up to a line-up of containers. In this article, we will explain how you can work with such companies to save money.
To start off, you need to see how much does the storage and distribution really cost to your business. If it is a sizeable portion of your ledgers, then you need to do a detailed cost-benefit analysis, which includes factors like:
- How many employees are needed for storage and distribution and how much are they being paid
- What are the warehouse costs in terms of rent, heating, and maintenance
- What are the transportation costs, i.e. fuel, vehicle maintenance, and drivers’ wages
What this achieves is that you discover all areas where savings can be made, and you can also accurately determine whether outsourcing is really worthwhile or not.
But note that simply hiring a storage and distribution company will do you no good. You will only make substantial cost savings if the transport company you choose is able to accommodate a variety of your needs, such as:
- Providing state-of-the-art and clean environments
- Providing Inside and outside services
- Offering pickups from the rail, airport, or wharf
- Linking same-day delivery to your storage requirements and specializing in on-forwarding and order pickup services
Here are a few tips on what you can find in such a company:
Ask for References
When you are short listing transport companies, ask for references from firms that have used their services in the past. A reputable company will never hesitate to offer these to you, and you can ask their clients directly by calling them. If you find a client that has been using the storage facilities of the said transport company over many years, then this is an indicator of high-quality service.
Research the Best Quote
Finally, another factor that contributes to cost savings by outsourcing your storage and distribution is the offer you get from the company. To find the best possible rates, make it a point to contact as many companies as possible and get no-obligation quotes for their storage rates, delivery costs and stocktaking rates. Of course, not all companies will give you similar quotes, but there are other ways in which you can get good deals.
For instance, hiring outdoor storage for your containers is more cost effective than indoor storage. This is one of the ways in which research helps. However, if you can find a company that offers a reliable indoor and outdoor package, it will be the best thing since you can choose the service based on your inventory needs.