Storage or Warehousing
Planning Optimum Storage
Warehousing and storage can be a lot more complicated than you think, especially with perishable products. A litany of terms and conditions often apply. You always have to be concerned with someone outside of your direct control handles your products. In our global economy we are often dealing with importers, exporters and brokers in different countries. It can be an advantage to have storage in a centralized location, but moving and relocating a product numerous times is costly. When developing a business plan the entrepreneur must always think about how and where the product or service is needed and the most efficient means to get it to the end user.
Some warehousing companies can operate as fulfillment centers – receiving your orders, picking the product off the shelf and shipping it via the selected transportation service.
Shipping costs have risen dramatically in the past few years with the increases in fuel costs. However, because of a downturn in the economy trucking companies are aggressively seeking loads wherever they can get them. You may be able to negotiate good rates right now, but be cognizant that rates could change in the future. Finding money-saving ways to get products to the marketplace is smart business planning.