The Hidden Costs of Handling Your Own Warehousing

By November 11, 2014Warehousing

Even though outsourcing warehousing functions can significantly streamline operations, many business owners still hesitate. They think outsourced warehousing is too expensive, and that they’ll save money by doing it in-house. This couldn’t be further from the truth.

While the up-front price of professional warehousing may look expensive at first glance, it’s important to consider all the hidden costs in doing your own warehousing. If you handle your warehousing needs in-house, you’ll be forced to pay all these expenses out of pocket – and they can add up fast.

  • Staff – Your biggest warehousing cost is going to be staff. You have to hire a team to manage your facility; sort, pick and package your products; and drive your trucks. You also have to pay their salaries and benefits, and cover any other expenses that may arise (workers’ compensation, accidents, etc.).
  • Equipment – You’ll also need to outfit your warehouse with the right equipment. That means industrial shelving, forklifts, pickers, inventory software, and other tools and resources.
  • Construction and set-up – Setting up warehouses can incur some hefty price tags, whether you’re building from the ground up or remodeling an existing structure to fit your purposes. You’ll have to pay for carpet or flooring, appliances, plumbing, electrical, and everything else your warehouse and employees will need.
  • Monthly bills – You will likely have a monthly rent (or possibly mortgage) payment, as well as some pretty high utility bills. The more business your warehouse does, the more expensive those bills will be.
  • Supplies – Warehouses require a constant stream of boxes, pallets, wrap, padding, tape, packing materials and more. You’ll need to replenish these monthly or even weekly.

Want to avoid paying all these costs out of pocket? Then go with professional warehousing services from Dependable Express. You’ll pay one easy, affordable flat rate cost. We can even help with logistics and distribution, too! Call or contact us today to learn more or to get started.