Five Benefits of Utilizing Warehousing Services

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Warehousing is the process of storing inventory until it is shipped to the customer, and it is a vital part of all small businesses that sell goods. As more small business owners enter the global market, warehousing services are becoming more in demand. There are four primary functions of any warehousing service that are critical to preparing inventory for shipping, tracking, and order fulfillment:

  1. Pick and Pack: This aspect of warehousing is concerned with selecting the products ordered by an end client, verifying the order for accuracy, and shipping it.
  2. Inventory Management: Inventory management works to track, measure, and update product counts in the storage facility and compare them to a minimum and maximum quantities, stock-outs, and service agreements.
  3. Order Fulfillment: Order fulfillment prepares the order to ship to a customer and ensures it is shipped expediently.
  4. Warehouse Management System (WMS): A WMS describes the software program that oversees warehouse operations, inventory storage, forecasting data, and daily productivity statistics.

Fortunately, with sophisticated and modern warehousing operations, warehousing services can provide many benefits to a client. In most instances, these benefits far outweigh the costs associated with the warehousing service. The advantages of working with a warehousing service include:

  • Centralized inventory: Warehouses provide a centralized location for all of your products, making it easier to keep track of inventory and ensure your productions match demand. A centralized location also makes it easier for fast pick-ups, which can decrease your time to achieve order fulfillment. Overall, a centralized location provides the opportunity for greater efficiency while boosting productivity.
  • Reduced costs: In addition to the benefits of a centralized location, the economies of scale related to warehousing operations ensures that business of all sizes can generally save money when contracting for warehousing services. And with these services, you don’t have to worry about hiring staff directly to manage your products, as the warehousing provider will worry about that while still ensuring you get all communication you need to make smart decisions about your operations.
  • Security: One of the biggest threats to a small business that provides goods is loss of inventory, either through theft or destruction. And many small businesses can’t afford to implement additional security measures when storing inventory. However, warehousing services ensure that facilities are adequately secured by hiring security guards that work around the clock, installing cameras to monitor inventory, and implementing additional safety precautions, such as sprinkler systems or other fire suppression technologies. These measures can prevent theft and reduce the risk of loss or damage to your products.
  • Availability: Meeting the expectations of customers today can be a challenge. Large, global companies have set unrealistic expectations about the speed at which order fulfillment can be achieved. Customers want their purchases quickly and optimizing your order fulfillment process through the use of a warehousing service can help you meet those needs quickly. And this can keep your customers happy and help you build a stellar reputation.
  • Information: In addition to wanting their goods quickly, customers also expect information about when they will arrive. And if there is a problem, they want to know why. Warehousing companies often have sophisticated tracking systems that ensure you know where your goods are at all times, which means you can relay that information to your customers. And if the order gets lost along the way, you can often identify where – a benefit that gives you greater control over your products.
  • Improved quality: Your products may have precise recommendations for storage depending on what you sell. For instance, some require refrigeration or have industry-specific guidelines for safe handling. Unfortunately, meeting these requirements can be difficult for small businesses. But with sophisticated state-of-the-art warehousing buildings, you can rest easy knowing that your products will be housed in a facility that meets or exceeds your requirements. And this will ensure that your product will remain of the highest quality until reaching your customers.
  • Data: Modern warehouses have sophisticated software that can provide feedback about your products. In addition to alerting you of supply status (such as when you have too much or too little of a product), these programs can provide data about inconsistencies with your product or even help you forecast supply needs to meet expected demand.

In reality, warehousing is now the foundation for many companies of all sizes. These services make it easy to meet customer expectations in a cost-effective way, which can help your business grow and remain successful. For additional information about warehousing, contact Dawson Logistics today.

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