Warehousing - Your Options

cient business requires efficient warehousing. It canImport/export handling, Containerization, Pool
often be the most profit-consuming element if notdistribution.
organised properly — with the cost of staff,If starting afresh you may need to purchase the
health and theft insurance, building rates.basics, forklifts, storage shelves etc. As these are big
Whether you contract for individual services, workinvestments, it is often cheaper to find a quality
with a warehousing company or run your ownwarehousing operator if the savings and features
warehousing operation, it is just good business senseoutweigh the investment costs. This is especially the
to make a plan and consider all the possiblecase when a business is still in its early stages, where
consequences.there is little capital set aside for investment.
Outsiders may think of a warehouse as justEven before this stage, the decisions can be crucial.
containing a pile of boxes that are loaded onto trucksYou will need to consider what will be best for your
for delivery. This may have been the case 50 yearscompany, public warehousing or contract warehousing
ago, but the modern warehouse operation usesIf you choose public warehousing you pay only for
specialist software to track each package around thethe space and services you use, as you use them
complex. Packages are bar-coded to help withand there is no long term commitment. Contract
tracking in and out as well as for in-house tracking.Warehousing involves a longer term commitment but
Some of the warehousing services available are:the costs per unit will be less. Public warehousing is
Trans loading, Cross docking, Pick and pack, Palletgenerally the better option initially, with progression to
exchange, Labelling, Packaging, Quality control, LocalContract Services as your product line becomes
trucking/drayage, Stretch/shrink wrapping, Inventorymore established.
control, Just-in-time control, Lot number control,