Should you outsource your warehouses? - Authorized Movers

Should you outsource your warehouses?

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By: Jorge Choque

Jul 21, 2021

Outsourcing is an interesting alternative for the management of certain operations, in particular warehousing; however, it is necessary to highlight and assess the different elements that make outsourcing an ideal alternative for our business.

Alex Kudzuma.
CEO of Anunalog

Warehouse management can become a headache or our competitive advantage. One of the questions we need to ask ourselves is: should I run my own warehouse or is it better to outsource it?

Outsourcing allows us to focus on our core business and let specialists take care of warehouse management. I invite you to reflect on the considerations that we must have in order to make a good decision.

  1. Is the warehouse we use rented or owned? If rented, this is a fixed monthly cost. Outsourcing storage allows us to turn a fixed cost into a variable cost, where we only pay for the space we occupy. If it’s ours and we decide to outsource the storage, we can allocate that space to other business needs or even sell that area.
  2. What is the volume or stock that we usually handle and what is its turnover? In case of higher volumes or rotations, we certainly need larger storage areas for our products and at the same time this may require greater specialization of the staff in charge of the warehouse.
  3. Does our warehouse have enough space for proper storage and to prepare our customers’ orders? When we size our storage needs, we must not forget that we need a space for picking, that is to say for the preparation of our orders. The warehouses have areas for storage, order picking, labeling, shipping, etc.
  4. Do we have inventory differences every time we do a physical inventory? Storage is not our core business, we are not specialists and we can see inventory discrepancies for various reasons, shipping errors, poor entry and exit records, internal theft, etc.
  5. Do we depend on someone to quickly locate the goods in our warehouse? It may happen that only our grocer knows where everything is and when it is missing we can find serious problems.
  6. Are our goods insured against fire, flood, theft and other risks? We are exposed to risks of different kinds. Formal warehouses are responsible for the stored goods and are insured against all risks.
  7. We are importers and our stock is several months? Let’s assess the use of customs warehouses, which are warehouses where our goods enter without paying customs duties. We can make partial withdrawals as needed, also paying the duty proportionately, thus improving our cash flow.
  8. Do we have reliable information on our stocks? If we are not sure what we have in our warehouses, we can lose sales.
  9. Do we have difficulty preparing our orders due to lack of qualified staff? We may have problems with delays in shipping our orders due to understaffing or internal inefficiencies.
  10. Have we compared our cost to the cost of outsourcing the service? Calculate the cost per m2 of our warehouse, to which must be added the cost of the staff working there, storage facilities, handling equipment, security installations and equipment, cameras, fire extinguishers, fire networks, detectors smoke or movement, etc. , the cost of insurance, The sum of these charges should be compared to the cost of a warehouse company’s storage service.

Formal warehouses are specialized in the storage service of the most diverse products.

• They have areas with different conditions, depending on the needs of their clients; open areas, covered areas, closed warehouses, stations with racks, controlled temperature, etc.
• They have merchandise management and control technology, such as WMS, as well as equipment for handling them.
• By outsourcing the service, we transfer the risk of loss of goods.
• Its staff is trained in the handling, maintenance and safety of the goods it stores.
• They offer online information on stocks of stored goods.
• They can establish service level agreements with each customer of
according to your needs.
• The more trust and collaboration between our business and the warehouse, the better the results of warehouse management. At Anunalog, we believe that increasing the spirit of collaboration between our companies will lead to growth and generate development for the companies, our people and for the country.



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