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Who Uses Warehousing Services?

Many companies have warehouses filled with shelves or a huge amount of open space dedicated to storing products and equipment. Unfortunately, all of this space costs money to create and maintain, making warehouses unaffordable to all but the most capital-heavy businesses. Third party providers of warehouse services solve this problem by storing inventory for all types of businesses.

What Warehousing Services Do

A warehousing company is a business with substantial warehouse space available for lease. Customers rent as much space as they need for as long as they need it, storing their inventories in the secure and climate-controlled environments. Special types of warehouses are available for items that require specific storage environments such as furs that should be kept in cold storage. The most common types of warehouses are simply large buildings featuring light, heat, air conditioning, and space as far as the eye can see.

A full-service warehouse is more than a storage spot. Workers process orders from customers, pulling the necessary items from shelves or pallets, packaging them, and staging them for delivery, a service it also provides. Trucks deliver orders day and night within a specified area that may include multiple states or the entire country. Regional warehousing providers tend to be most affordable and convenient because they service several states but do not charge the high rates that national providers do.

The Typical Warehousing Services Customer

Businesses are the main customers of warehousing providers and most of them are large enough to have a substantial amount of inventory but small enough to deem a dedicated warehouse unfeasible or unaffordable. Running a warehouse is a major responsibility and is also quite expensive. Hiring staff, taking safety precautions, purchasing forklifts and other warehousing equipment, and paying rent, utilities, insurance, and other overhead costs are all required.

Many businesses find it more convenient and cost-effective to store their items in offsite warehouses managed by third parties. To their customers, these businesses provide the impression of having full-service warehouses and distribution centers. What customers do not realize is that these companies are passing orders along to external warehousing services that handle the picking, packing, and delivery.

Any type of business can use a third-party provider for warehousing. A centrally located warehouse is recommended for fulfilling orders in a timely manner. Orders are shipped between several states, at most, shortening the delivery time. Customers receive their orders quickly and business owners can run the operation from anywhere including their homes.

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