Reason to Outsource #1: Internal Inventory Management Can Be Costly
One of the main reasons for outsourcing your inventory management is that having inventory sitting in your warehouse can be a drain on cash.
Warehousing and distribution activities can represent 25-35% percent of overall logistics costs for businesses. If this is not a core competency for your organization, the question becomes, "Why build the capability when we can buy it?"
Why spend the money and resources on solutions when you can rely on experts to handle it? Especially when you take into account the added costs, including administration, labor, real estate, and equipment, that are all associated with managing inventory internally.
Reason to Outsource #2: You Gain Flexibility Without Risk
Global markets are always changing, along with supply and demand needs in a variety of industries. These changes can affect your staff and may include having to over-hire and then let people go, which can get tricky and possibly end in legal issues.
By outsourcing to a company with a pre-established warehouse inventory management system, you don’t have to take that risk, and you gain the ability to adapt to your workflow without having to encounter any possible mishaps.
Reason to Outsource #3: It Gives You Time to Focus on More Important Areas of Your Business
According to a recent article on Business.org, warehouse inventory management can take up a lot of unnecessary time in your day that could be better spent on more important matters. When you outsource your inventory management, though, you are able to focus on the parts of your business you can actually profit from, like marketing, establishing customer relationships, and developing new ideas.
Reason to Outsource #4: It Can Improve Your Service
Some people are under the misconception that outsourced inventory management can weaken your service. This is a myth. Outsourcing your inventory management can give you the peace of mind that professionals are doing efficient work for your business in a timely and respectable manner.
Many companies outsource for services they know they are not experienced in, such as IT services, human relations, accounting, marketing, and much more, so why not do the same with your warehouse inventory?
Reason to Outsource #5: You Don’t Have to Learn New Software
Similar to our second point, when you do inventory management internally, you may need to hire new people or shift roles within your current workgroups. With this, you will need to train people to learn something they may not have much experience in, including warehouse inventory management software systems.
When you decide to outsource your inventory management, you can trust that your chosen provider is well acquainted with modern technology that makes inventory management as efficient and organized as possible. This lets you avoid having to train your staff or risk hiring new people who may not live up to their resume.
BONUS: Reason to Outsource #6: Easier Transportation
In most cases, inventory management warehouses are conveniently located throughout the nation and have easy access to interstates, ports, and much more.
Not to mention, these facilities are already prepared with trucking fleets and other necessary equipment needed to transport a variety of goods, such as bulk items, bulk liquids, and more.
Interested in More Posts Related to Inventory Management?
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About World Distribution Services’ Warehouse Inventory Management System
Our wide range of warehousing services incorporates logistics solutions that can add value to your business.
Some of these include but are not limited to services such as:
- Pick, pack and ship
- Quality control