Why Using Third Party Warehousing And Logistics Makes Sense

Most business need access to warehouse space. Retailers have to have somewhere to store their stock. Manufacturers have to store both their raw materials and finished products. Even service providers need somewhere to store the tools of their trade or supplies. As a result, many firms have some warehouse space of their own. However, renting, running and maintaining warehouse space is quite expensive. Warehousing is an overhead that firms really need to keep to a minimum to stay profitable. Many are finding that using a reliable third party San Antonio warehousing and logistics provider is the best way to do this.

Save Money and Improve Customer Service

Most firms have busy and quiet times. During busy times, warehousing pays for itself. The problem comes when work tails off. At this point warehouses quickly become a financial liability. The warehouse still has to be heated and maintained and full time staff paid even if they are doing very little actual work.

Firms that use third party fulfillment centers do not have this problem. They only pay the third party contractor for the actual space their products take up. When a customer places an order, the fulfillment centre picks the product and delivers it. Naturally, there is a charge for this service, but firms only pay when they actually use the service. There are also savings to be made on delivery costs. Warehousing and logistics firms dispatch thousands of items each week. Economies of scale mean that the cost of delivery can be kept low.