The Importance of Warehousing in Business
As Australia’s business landscape continues to change, so must the way we do business. With more than 2.1 million firms in operation, owners are fighting for space in a growing marketplace.
The construction industry is leading the way in growth but experts don’t believe that will last long. After all, Australia’s e-commerce sales are now in the top 10 worldwide.
Warehousing is a big reason for Australia’s e-commerce boom. Here are five benefits you should consider.
1. Warehousing Saves Space and Money
Let’s start with the obvious. When your goods get stored in a warehouse or logistics centre, you don’t need a large facility. You won’t store your product, which reduces the space you need.
If you own your building, this may not matter to you. But it should. The space you’re not using can get leased to another company, increasing your revenue.
If you rent your building or space, you can minimise your overhead costs. With prime space costing an average of $1,000 per square metre right now, that can work out to a huge saving!
2. Increases Productivity in Workers
Contracting with a logistics or warehouse centre increases your workers’ productivity. They can focus on sales and customer follow-up, leaving the searching, picking, processing, and shipping to experts.
You’ll see less downtime among your workers and you may also find their productivity improves by doing less. When you overwhelm your workers, their morale lowers and frustration increases.
Warehousing allows you to keep them focused on the aspects of your industry they’re best at.
3. Reduces Security Issues
As a business owner, protecting your product from damage or theft is one of your biggest concerns.
Storing your goods in a warehouse increases the security of your investment. You’ll find that many centres have state-of-the-art security technology. You’ll also find that some have workers presents 24 hours a day.
You’ll save on security and have peace of mind that your goods are safe and stored efficiently.
4. Makes Room for Expansion
If you’ve been thinking about growing your business but haven’t due to space concerns, a warehouse takes that concern away. You can even shrink the space you need because the centre will store your inventory.
You can grow without worries because expanding won’t affect your overhead. You’ll be able to offer a larger product line. Your palletised goods may increase, which will cost more, but not as much as if you needed a larger space to rent.
5. Improves Customer Service and Satisfaction
Regardless of where they live from your business, your customers want everything right this minute. The second they hit the payment option, they’re looking out the window for their package to arrive.
Warehousing your goods with a reputable company increases the speed at which your goods arrive at the customer’s front door. An experienced warehouse hires the best pickers and packers and shippers to ensure the speed of your supply chain gets optimised.
As such, your customers are happy and will choose your company the next time they’re in need.