The warehouse and storage industry is well on its way to becoming a trillion dollar industry. The market currently seats at $714.79 billion . And is showing no signs of slowing down.

For many businesses, warehousing is an important aspect of their service delivery. But owning and operating a warehouse is not always financiallyfeasible. The investment it takes to purchase and run a warehouse can be heavy for small businesses. That is why we advise most to outsource their warehousing.

Below we will break down the concept of warehouse outsourcing and its three top advantages.

What Is Warehouse Outsourcing?

Warehouse outsourcing is the process of partnering with a warehouse and distribution expert to handle the warehousing aspects of your business. A third-party warehousing expert will be responsible for receiving and ensuring distribution of your products to their necessary destinations.

Reasons to Outsource Your Warehousing

There are several reasons why businesses outsource their warehouse operations.

Lack of Capacity

Some businesses find that as they grow, they no longer have the capability to handle their increasing inventory. And in this time, they turn to warehousingexperts with the capacity to manage their inventory.

No Skilled Personnel

An important aspect of the supply chain is skilled personnel. Without the right labor, managing distribution can prove difficult. Businesses without the appropriate personnel can outsource warehouses to ensure they can still serve their clients.

Lack of Expertise

Another reason to consider outsourcing is lack of expertise. If your business doesn't have the knowledge to expertly address your demands, it may betime to partner with a business that can.

IDM Products can help you meet your business demands. See a full list of our services.

Types of Warehouses

When it comes time for you to outsource warehousing services, there are types of Warehouses you can look into. 

The type of warehouse you choose will depend on your business needs.

1. Smart Warehouses: Smart warehouses take advantage of the latest technology to ensure success in their storage and fulfilment process. Automation beats at the center of smart warehouses. That means there is little need for supervision or even manual labor.
2. Consolidated Warehouses: Consolidated Warehouses operate by gathering smaller shipments. They then consolidate the products and ship them together to their differentdestinations.
3. Climate-Controlled Warehouses: Climate-Controlled warehouses are what the name suggests. These warehouses are for businesses whose products are climate sensitive. Herewe are often talking about perishable goods or medical supplies.
4. Distribution Centers: When you think of distribution centres, consider airports. In these centers, goods don't come to stay. They are quickly processed and shipped to theirdestinations.

3 Benefits of Outsourcing a Warehouse

From saving money to experience, there are countless reasons why businesses contemplate partnering with third party providers. But here are the top 3advantages

1. Expertise and Experience

Success in the supply chain is categorized by two factors: experience and knowledge. By partnering with a well established third party provider with the know-how and experience will ensure you enjoy hassle free delivery to yourclients. An experienced distributor will guarantee the best routes for your business. Saving you money while at it.

2. State of the Art Technology

Technology within the logistics industry is constantly changing. And for you to serve your clients at an optimal level, you may need to make thisinvestment. But investing in technology is expensive, especially for small businesses.

However it doesn't have to be.

When you partner with a warehousing business, you have the unprecedented opportunity to relish the finest industry technology without having tomake the hefty investment yourself.

3. Focus on Other Aspects of Your Business

Another advantage of warehouse outsourcing is that it frees you up to focus on the core aspects of your business.

When you relinquish your warehousing reigns to an experienced and competent business, you won't have to worry about fulfilment.

That task will fall on your 3PL, freeing both you and your staff to focus on the main sectors of your business.

What to Look for in a Warehousing Partner

Warehousing with the wrong partner can be a terrible experience for you and your clients. Not only will it delay delivery but it will compromise yourcustomer service.

The wrong partner may not necessarily refer to a business that is incompetent. But rather one that lacks understanding of your business and niche.

So when you are looking for a distribution partner, there are several things you need to verify:

• Does the 3PL have experience in your niche?
• Can they handle your capacity?
• Do they have customer reviews to back their experience?

Outsourcing Your Warehousing Needs

Warehouse outsourcing is not only a means to save money. It is a trend that will ensure you enjoy the freedom to run your core operations and interactwith your customers without the worry of storage and fulfilment.

What you need in a 3PL is a business partner to whom your success matters. At IDM Products, we handle everything from product sourcing to distribution.

We have an expert team handling supply chain integration. Contact us to hear how our services can help grow your business.