Chances are, your business is doing well because you are good at what you do. Often, fulfilment and warehouse management requirements are a bi-product of your success as a business. By opting for a 3rd party logistics company like ourselves, you are freeing up a lot of time that could be spent on what you do best; running your business. Many of our customers are shocked at how much time they actually spend on logistical tasks rather than focussing on marketing and increasing their sales.
Once your business reaches a certain size you will need a warehouse, or a larger warehouse if you have one already. You will also need multiple staff and a manager. With these come additional overhead costs. Since we specialise in this field, we are able to run this process more efficiently, thus reducing the size of overheads.
By housing your products in our warehouse rather than your own, you can increase your storage space as your requirements change. There will be no need to wait for warehouse leases to end and incurring expensive moving costs. You simply let us know how much extra space you need and we will deliver, even on extremely short notice. This eliminates the risk caused by a difference between growth predictions and available long-term warehouse space.
Manage cyclical demand more efficiently. Running a warehouse year-round is highly inefficient when your products are in greater demand at a certain time of year. This means that during the rest of the year your warehouse is not running at full capacity, often barely even half capacity. This means there is great inefficiency; you are paying for rent, rates and wages for a warehouse and staff that are not being fully utilised throughout the year. Boxed In can offer you the great benefits of a warehouse without the inefficiencies that usually come with it. You can increase or reduce the amount of space you require and only pay for the pick and pack costs of what you sell, without being tied into a fixed lease.
Benefit from economies of scale. If you send out 500 items per day you are likely going to incur lower unit packaging costs and can negotiate better postal rates than if you only send out 5 items per day. Choosing Boxed In as a partner can enable you to also benefit from these savings, even if you ship out fewer items per day.
In the logistics industry efficiency is everything. Often those high levels of efficiency come with an equally high price tag. By working with a 3rd party provider you can benefit from state of the art machinery and software to ensure that your picking and packing is always done as efficiently as possible.
Setting up and running a warehouse requires a lot of capital. Fitting out the warehouse itself with appropriate racking, shelving and other fixtures; training staff; forklifts and machinery – these are all examples of capital absorbing necessities in running a warehouse. With capital being tied up in a warehouse, there is an opportunity cost where you are losing out on the benefits you could receive by using that capital elsewhere. By outsourcing to Boxed In, you can free up this capital and use it where it is more effective and reap greater rewards.