With increasing operational requirements in businesses, it has become important to attempt Warehouse Expansion whenever the opportunity arises. Through which warehouses will be optimized, as well as keeping pace with operational requirements. Especially since warehouses play a major role in the trade process, as they represent the cornerstone of warehousing and shipping activities as well as distribution. In this article, we will talk about the Warehouse Expansion process, as well as its most important negatives and positives.
What is the warehouse expansion process?
Warehouse expansion is meant to increase the space of your warehouse, to keep business running smoothly.
Especially since in light of business growth and increasing operational requirements, companies are in dire need to expand their warehouses to keep pace with these changes.
Through the process of warehouse expansion, you will be able to get more space in your warehouse, and thus store a greater amount of items.
Increasing your warehouse space will help you improve your existing systems, as well as increase the flexibility and ability of your workforce.
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Warehouse expansion pros and cons
There are a number of pros and cons to the warehouse expansion process, and here are the most important of those pros and cons to benefit from each of them:
Pros of warehouse expansion
The following are a number of points that explain the most important advantages of the warehouse expansion process:
- Enjoy a competitive advantage in meeting your needs.
- Increase the productivity and efficiency of your workers.
- Improve deficiencies in your existing systems.
- Reaching optimum standards in your operational processes.
- Rethink and improve your technology infrastructure.
- Expand your capabilities to meet customer requests.
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Cons of warehouse expansion
Despite the huge advantages of the warehouse expansion process, there are a number of drawbacks to it. And the following are the most important of these drawbacks:
- The need for a large financial investment.
- Taking a long time to expand the warehouse space.
- Increasing labor and operating costs.
So be sure to weigh the pros and cons of this process, and choose the decision that brings you and your business the greatest possible benefit.
When to consider warehouse expansion alternatives
Before you consider warehouse expansion and focus on its benefits and take advantage of it, you will first need to check that this is the right option for your business.
Despite the huge benefits that can accrue to your business from the warehouse expansion, you may incur a greater risk in return.
And in the event that you cannot afford the costs related to the warehouse expansion process. Then here you will start to think about the expansion process alternatives.
Here are a number of points that show you when to start thinking about these alternatives:
If your brand can’t handle the expansion process
Then the solution is to cooperate with a third-party logistics company (3PL). Thus, saving a lot of expenses, and enjoying greater discounts on shipping operations.
There is a problem in hiring sufficient manpower for the expansion process
If you are unable to hire a suitable team, you will not benefit from that expansion process. The solution here is to cooperate with a third-party logistics company (3PL).
So the most suitable and least expensive alternative to the expansion process is to outsource it to 3PL, who will take charge of the inventory for you.
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How 3PLs support your warehouse performance
3PLs play an important role in enhancing the performance of your warehouse, without the need for additional expenses on expanding your warehouse.
As 3PLs help reduce overheads, as well as take responsibility for managing and auditing inventory and other freight logistics.
Also, by cooperating with a suitable 3PL, you will be able to expand your space easily, by contracting only the space that you need and that you will actually use.
This saves you a lot of expenses, and thus saves you money in the short term and helps you to employ it in other businesses that benefit your business.
If you want to cooperate with a suitable logistics partner, Diggipacks is your best choice.
Which offers you various logistics services that you may want, with the highest efficiency and the best prices to maintain the flexibility of your business.