4 Potential Issues With Outsourcing Ecommerce Warehousing – And Solutions

If you have outgrown your current warehouse and you need a solution that helps your company thrive, without limiting your business, you need to consider outsourcing your warehousing to a fulfilment firm. While there are many advantages to this solution, there are also some issues to consider before you can be sure you are making the right decision. Here are some of the pointers to think about as you begin to move to an outsourced warehousing solution.

1. You Pay More Upfront

It may seem that outsourcing your warehousing will cost you more. After all, you have to pay someone else for something that you were previously doing yourself. But as you work through the figures over the long term you will see that an outsourced solution actually saves you money. This is because you join forces with a larger operation and you can take advantage of economies of scale, and get access to low cost shipping and storage solutions that you otherwise would not have been able to reach. It’s definitely a cost-saving solution.

2. You Need to Commit to a Minimum Stock Level

Some warehousing solutions will require you to stick to a minimum level of stock. But other warehousing solutions are more flexible. In fact, flexibility is a big advantage of outsourcing your warehousing since you can react to downturns and upticks with more space and capacity, or less.

3. You Give Up Control

Initially the idea of letting someone else handle fulfilment is worrying. You are probably used to having your stock under intense watch. You will be used to physically monitoring where stock is at any given point. The thought of giving this “power” away can be unsettling. But each warehousing solution also comes with a good degree of control. You monitor what happens. You get live data and reports on stock and inventory and deliveries. Nothing is truly out of your hands.

4. You Can’t Be Sure It Will Work?

Obviously a new solution may be scary at first and it can be a struggle to put trust in another company to handle such a sensitive and crucial part of an ecommerce business. Which is why it is really important to pick a partner who will work for you, and who will be able to fulfil your individual needs in ecommerce fulfilment. Look for a warehousing solution to match what you want – there are many different businesses out there with slightly different strengths and emphasis. Choose wisely and you can be sure that your distribution and fulfilment are in good hands.

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