How do I know if my business is big enough to need a warehouse?
Transitioning from local storage to warehousing isn’t just a matter of size. There are plenty of large businesses that don’t need a warehouse. On the other hand, there are small online stores out there that still rent out a bit of warehousing space to simplify logistics.
Those are the two key factors to keep in mind. First, you don’t need to rent out an entire warehouse — you can partner up with a third-party warehousing services provider to get storage space and help you with logistics. And second: the logistics benefits of renting warehousing space exist even if you’re not shipping or managing a large volume of items, especially if your business is online-oriented.
Renting from a third-party provider also spares you the trouble of dealing with the daily hassles of running a warehouse. Experienced warehouse managers will be familiar with local suppliers who can deliver pallets in Portsmouth — click here for an example — and other service providers that can make running a warehouse easier. If you choose to handle that management work yourself, getting familiar with the ins and outs of running a warehouse can be quite a learning curve.
Anyway, the answer is: it isn’t about whether your business is big enough; what matters is whether or not switching to a warehouse will be more profitable. Or whether the logistics benefits will be worth the additional cost. And the answer to those questions depends on what kind of business you run and on how your logistics operation is currently set up.
