Many growing businesses come to the point where they have to decide whether to lease out a warehouse and hire talent to manage order fulfillment or to use an outsourced warehousing company. Let’s go over what goes into setting up a lease space and alternatively using a warehousing company.
You may be thinking about leasing a space to handle more order fulfillment needs as your company grows. Here are some questions to include in your research:
- What size of warehouse will I need to handle busy seasons and future growth?
- How many people do I need to hire including supervisors and operational staff?
- Will I need seasonal staff?
- What location has the best tax benefits while being centralized for my customer base?
- What inventory software, computers, and IT experts will I need to invest in?
- What kind of insurances are needed to ensure my business is covered?
- Will I need to add extra staff for clerical duties and inventory management?
There are many topics that must be addressed prior to committing to leasing a space to ensure your businesses success. The other option is outsourced warehousing which takes the burden off your shoulders and takes less of your time and resources to get started.
If you want to keep more of your money in inventory and marketing, consider outsourcing warehousing operations. You pay for the space you use throughout the season. This gives you opportunity to expand during busy times with worrying about hiring temporary workers. The warehousing company will allow you to focus on the other aspects of your business that will help you to succeed.