A warehouse provider plays a vital role in helping eCommerce businesses boost their sales and earn the trust of their customers. This provider doesn’t just handle warehousing but it also handles fulfillment and distribution. But how can it help you save money?
Cost-Saving Benefits of a Warehouse Provider
Reduced Overhead Costs
This is one of the main benefits of using a warehouse. It eliminates the need to pay for warehouse rent, utilities, and equipment. Keep in mind that maintaining a warehouse facility has associated costs. The cost includes various aspects, including operational and overhead. Plus, there’s also the risk of spoilage, damage, or customer rejections.
Businesses that are outsourcing their warehouse needs have experienced a great reduction in their overhead costs. By contracting with a provider, like EGA Logistics, you can slim down facility expenses, like business rates and rent while still having the space for storage and inventory when needed. Most of all, you’ll spend less money on staffing as you don’t require multiple employees to manage your warehouse.
Reduced Labor Costs
Partnering with a 3PL can also lower overall labor costs as the provider will handle various warehouse tasks, such as storing, receiving, and shipping products. By not handling these things, you are saving the business money on labor costs. As you utilize its provider’s services, you’re only paying for the labor you need. The provider has the expertise and labor for product shipping and assembly management.
Improved Inventory Management
Furthermore, a provider utilizes technology and logistics expertise to optimize inventory management, which can help reduce the costs associated with overstocking or stockout. Storing and movement of stock can be time-consuming. It is also costly as it is linked to picking, packing, and dispatch. But when you outsource it to a provider, your stock inventory management will be more cost-effective. As you delegate the process to the provider, you can have more time to diversify and grow your business.
Reduced Risk
The use of a warehouse provider can lower the risk of inventory loss or damage. It also lowers the risk of having too much or too little inventory on hand, which can save the business money in the long run. In this modern business, you need the flexibility to adjust to the ever-changing market conditions in the supply chain. Storing your inventory at a warehouse lets you have on-hand inventory to avoid stockout. EGA Logistics has the necessary equipment and tools to ensure that your products reach their destination faster at a much lower cost.
Cost of Compliance
This is one of the hidden benefits of using a third-party warehouse. The provider can handle compliance with laws and regulations that apply to storage and shipping. This can save the business money on legal and compliance-related costs.
Flexible Warehouse Services
EGA Logistics is one of the leaders in warehousing. It can handle whatever size and type of your inventory. The company has a team of experts who design, implement and operate warehouses customized to your business requirements. Call our warehouse provider today for a consultation at (888) 496-1102.
