Opting for a flexible warehouse agreement as a small or medium-sized business offers the advantages of a larger warehouse without the commitment and capital investment. Finding the right public warehousing partner allows you to focus time and energy on growing your business, instead of putting out fires related to a lack of warehouse space or too much empty warehouse space.
Improved transportation logistics for consumer product manufacturers translates to fewer problems with moving goods efficiently from origin to customer. For a company with fluctuating needs, a flexible warehouse agreement may be the most inexpensive and effective solution.
Sharing warehouse space during peak season
If your company experiences a spike in product demand during the weeks leading up to Christmas or if your product is strictly seasonal, then the space you rent for store inventory will suddenly become inadequate during peak season. During the slowest times, you will pay extra for unused space. Rather than enlarging the entire operation to accommodate the busy season, consider a flexible warehouse agreement or temporarily renting a warehouse space.
Here you can accommodate a larger amount of inventory with short notice, allowing you to serve a larger customer base efficiently. However, this temporary increase in capacity will cost you during slower times.
Pay for the exact services needed
Building and staffing a warehouse to accommodate your busiest seasons is not the best use of resources for most small businesses. To avoid going the do-it-yourself route, many companies rent a set amount of space and sign a long-term lease to keep the costs as low as possible. They then encounter difficulties with scaling their operation up and down to accommodate customer demand.
During peak times, you may need additional staffing support. An experienced flex warehouse provider will maintain relationships with employees year ’round. Since you only use what you need, there is no need to constantly hire and lay off the staff managing your inventory.
When sales volumes rise, you may need to rely heavily on the in-house warehouse management system of your flexible warehouse provider to keep track of inventory as it enters and leaves the facility. This is another area where having a relationship with a trusted and experienced warehouse provider could help your business thrive.
Reduce transportation logistics risks
Building, staffing, and maintaining a warehouse large enough to accommodate your business needs at their peak carries a great deal of risk. Trying to make a set-in-stone infrastructure work well for your company as it changes and grows could be a frustrating and expensive project.
If you rent a space with a certain number of square feet and sign a long-term lease, then you may get a good price, but you will undoubtedly face a too-big or too-small problem during much of the year. Flexible warehousing removes the risk of being stuck with a space that is too large or too small. It also eliminates the costs associated with accessing a short-term rental space during peak times or paying for empty warehouse space during slow times.
Find your ideal freight shipping logistics and flexible warehouse partner
Your company cannot afford to waste time and money with trial-and-error when it comes to finding a great flexible warehouse partner. You may be engaged in manufacturing logistics including transportation of raw materials to manufacturing facilities on a tight schedule. Perhaps dry van trucking shorter distances or a custom flatbed hauling solution would be a good fit for your shipping needs.
No matter what you ship, how far it travels, and how long you need to keep it in a warehouse, having a dependable and experienced flexible warehouse partner is key to your success as a business.
Small and medium-sized businesses may struggle to compete with larger companies that have the advantage of better efficiency and the ability to scale their operations at a moment’s notice. Your flexible warehouse partner can solve logistics problems using resources that small and medium-sized businesses may not be able to access on their own.
It can be impossible to make reliable predictions about customer demand, especially with a business that experiences the ups and downs of seasonal demand. The variable cost model available with a flexible warehouse agreement allows for those fluctuations and protects the company’s capital during slower times.
Whether your company’s needs include international cargo shipping or short-haul trucking services, let RCX Solutions be your partner.
Connect with us
Moving your goods safely and getting them to their destination on time is our specialty at RCX Solutions in Little Rock, Arkansas. To learn more about the service we offer, go ahead and contact us at 866-336-9697 for a consultation. Let our team of experts show you how we can help your company grow.