Logistics help for your business
If you run a business the chances are that at some point you will expand. This means that you may have to store the goods you are selling. In the short-term, you may consider small-scale solutions that range from your garage to a storage unit that you can rent. But as companies expand even further, these options are just not feasible. This is when it becomes necessary to take on a contract storage solution, where you contract your storage out to a specialist. The contract storage specialist will offer a long-term solution that should allow you to take the worry out of storage by leaving it to professionals. This allows you to get on with running your business. This article will look at some of the basic considerations you will need to think about before taking on a specialist.
It is obvious that a small business owner will ask why they might need to contract out their storage on such a considerable scale. After all, once you are in a contract with a professional company, you’re tied in, right? This means fees, and other problems like commitments to time frames etc. It may feel like you are giving up the controls of an aspect of your business to an outside party. However, the opposite is true.
Developing and fulfilling orders is a big part of business, and it can literally take over much of your time. If you have a lot of items to ship out, then you will need staff to help, even if it is only a couple of people to help you arrange the boxes and so on. Giving this aspect over to a company that can do it for you professionally and efficiently can save you a huge headache. And then there is the issue of stock management in the way of storage and space. By having a company dealing with the racking aspects of the stock, and the pallet storage, this aspect of the business can be compartmentalised and ‘left to run itself’.
How do warehousing companies work out Pallet storage costs?
Costs are important to a business owner because if they are not factored in to the budget they will affect revenue. Using a contracted service does mean costs, but these are easy to manage and track. The good news is that the majority of pallet storage contractors are sensible when it comes to costs. It is very much the norm to have a situation where you can be charged per pallet, and usually on a weekly basis. This allows you to manage business flow easily, so you won’t be penalised in times of quiet business with standard storage charges.
Another cost to take into consideration is something called RH&D. This means Receipt, Handling and Despatch. This is usually charged when the goods are brought into the warehouse and then once again when the goods are called off. RH&D is charged per pallet in and per pallet out.
Most companies will also ask you to detail the stock you have as much as you can. This is actually a good thing, because this will allow them to accurately identify how much space and how many pallets you need. Again, this takes away the worry of excess charges.
Pallet storage is the next logical step for any business that is beginning to expand beyond the ‘small’ category. If this is you, it is well worth looking at some companies that offer the service. They can bring peace of mind and a level of professionalism that removes a lot of stress.