Did you know that 46% of businesses don’t track their inventory? With that in mind, if your business struggles with inventory management, you could benefit from contract warehousing solutions. When you work with a public warehouse facility, your business is provided with all the inventory management essentials.
Warehousing facility professionals understand the differences between niche storage needs and can provide your business with the solutions unique to your products. This can be anything from food and beverage storage to retail inventory or heavy machinery. If you’re interested in learning more about how to best utilize your contract warehousing solutions to reap the benefits, read on.
Here’s what you need to know about how to best utilize contract warehousing solutions:
- What is Contract Warehousing?
- Cut Back on Costs
- Flexible Service Periods
What is Contract Warehousing?
Contract warehousing solutions handle the shipping, imports and exports, as well as the storage of goods on a contractual basis. This type of warehousing typically would require your business to commit to storage services for a particular period of time.
Depending on your storage needs, the length of time stipulated in your contract may vary. Often, these agreements are laid out in years rather than months. As for payment, the fee structure for your warehousing solutions will vary based on your storage type needs and the longevity of your contract.
Cut Back on Costs
When you work with a warehousing facility that offers contractual agreements, you can often save your business a little bit of extra cash! Rather than purchase your own warehouse and go through the hiring process to acquire skilled storage professionals, contract warehousing solutions save you time and money.
With contract warehousing, facilities are already built and divided into zones for a variety of goods and products. This can include temperature-controlled storage, dry storage for food and beverage needs as well as general storage. The logistics company that you choose to work with will be able to provide the industry experts, high quality storage equipment and will handle all maintenance expenses. Storage logistics companies are also typically responsible for most incidental expenses, which further reduces costs for your business inventory management needs.
Flexible Service Periods
When you work with a contract warehousing company, you should understand that you will only have access to this space for an allotted period of time. Whether you intend to use the warehouse for a year or ten years, a contract protects your company from unexpected expenses.
Contractual warehousing solutions will specify the annual or monthly cost, along with any possible alterations that could occur over the contract period. On top of that, there will be language that details the process for extending the contract period if you plan to do so after your contract has expired. With contract warehousing solutions, your business can work with these flexible service periods to make the best decisions for your business long term.
A big perk to the use of contract warehousing solutions is the reliability. Contract warehouses provide extra services related to packaging and distribution and can be extremely useful if your business plans to expand or experience increases in demand of your product.
Contract warehousing solutions keep your products protected and flowing to and from storage on time. Developing long-term relationships with reliable logistics partners is important to a business’ longevity as their team of experts will be handling your products very regularly.
No matter how large or small your company is, choosing the right warehouse space with a team who you trust, is of great importance. With a trusted logistics partner, your business will be able to save time and money, feel secure and knowledgeable about your inventory as well as provide quality customer service through high levels of reliability.
Consider M&W Logistics For All Your Company Warehousing Needs
M&W offers a customized supply chain solution tailored to fit the requirements of your business with a dedicated facility and workforce. In our supply chain analysis and discussion with the client, we aim for the most efficient, cost-effective solution offerings.
Our contract warehousing services allow customers to tailor their own space to fit their specific supply chain needs. Whether that requires full distribution of their product, temperature controlled facilities, space for manufacturing and distribution, or a combination of all the above plus space that include final assembly and packaging for retail or CPG shipping.
We have the ability to operate the facility using your technology, our technology or a combination of both. We also offer build-to-suit facilities for our contract warehousing customers.