If you run a business, then you know there are a lot of cost to think about. Each budget cycle requires you to be as accurate as you can with your number forecasts. This means that every department of your business must be up to scratch if you plan on meeting your numbers for that business cycle.
Some areas, such as legal, accounting or IT, are all services that are best handled on site at your office. However, logistics and supply often require you to work with outside groups. One such function of logistics is called 3rd party warehousing. 3rd party warehousing is a method offered by a group outside of your own business that will help you with logistics, warehousing and shipping. This means that you can save money while getting the support you need for logistics. 3rd party warehousing will also help you save time.
3rd party warehousing is offered by a wide range of groups. This means that it is up to you to find the best supplier of 3rd party warehousing support in your area and in the area of your target market. For example, if you ship to a different state for most of your sales, then the warehousing service that you work with ought to be set up to help you manage warehousing in in both states. This means that they will already have the infrastructure required for you to get your products from where they are made to where they are sold.
The cost of 3rd party warehousing will vary with each client. For the most part, the more you need to ship or store, the more you will pay. However, the total cost per unit is lower if you store your goods in large quantities. This is because warehousing and shipping services become less expensive per unit if you are shipping more. To determine the actual rate that you will pay, get in touch with a warehousing group that can answer specific questions about their availability, and about special products that may require refrigeration or other care.
Small companies that do not yet require a large warehouse for their inventory especially benefit from 3rd party warehousing. This is because the cost and infrastructure it requires for you to run an efficient warehouse may be higher than what you can afford. Be sure to find a service that is set up to help you with warehousing as you grow.