Warehouse rental: smaller storage to better opportunities

Warehouse rental is a need that most companies and organizations encounter in their operations – regardless of whether it is documenting paperwork or storing products. However, with the growth in popularity of e-commerce businesses, an additional need for archiving has been created. A warehouse is a place where stocks of goods are stored for a long time or until there is a need to pick them up. When to use a warehouse instead of a fulfillment center? What are the advantages of renting one? The answers find below.

Warehouse rental for small and large enterprises

Renting a warehouse is suitable for small and medium-sized companies. For smaller enterprises, it is not profitable to invest efforts and resources in the construction of a new space. In developed countries such as the USA, this service is on the rise, as confirmed by the latest statistics. It should be borne in mind that the warehouse must be in accordance with the requirements of the profession. This means that it must meet special conditions, contain all necessary documentation and comply with legal approvals and permits. Such a condition is having an MTR. You can read all the details about meeting the minimum technical requirements in our blog MTR for tradesmen: key information.

Although these services mostly use small-sized organizations, larger corporations often use them as well. For example, companies selling specialized decorations have a need to store Christmas items, given that these items are not sold for approximately 9 months of the year. This enables numerous stores to keep items, and on the other hand, frees up space in their own sales facilities.

Warehouse rental vs. the benefits of the fulfillment center

Along with warehousing, the demand for fulfillment centers has also increased recently. Therefore, if you are considering these services, it is good to know the difference between these two terms before choosing. While a warehouse refers to the simple use of space to store products for further use, a fulfillment center offers a much wider range of services. If you need employees who will receive products, pack them, take care of the user experience, communicate with suppliers and courier services, receive complaints, and similar, definitely consider the services of a fulfillment center.

Advantages of renting storage space

Distribution of capital

The biggest advantage of renting warehouse space is certainly the optimal distribution of capital – financial resources and what you get in return. The invested funds are minimal compared to the purchase or construction of a new property. This way business owners can use the funds for more important purposes such as product improvement, sales, or marketing. In addition to the previously mentioned when opening any space, we must not forget to collect the necessary paperwork. The same applies to warehouses. Some of the documents you will need are, a building permit, a construction contract, registration of the property’s address, and requests for utilities (water, plumbing, electricity, telephone, internet, trash, and much more). By renting a warehouse, you skip these steps and focus on the strategic priorities of your business.

Lack of paperwork

When opening any space, including a warehouse, we mustn’t forget to collect the necessary paperwork. Just some of the documents you will need are, for example, a building permit, a construction contract, registration of the property’s address, and requests for utilities (water, plumbing, electricity, telephone, internet, trash, and much more). By renting a warehouse, you skip these steps and focus on the strategic priorities of your business.

Resource optimization

In case they don’t want to rent but own their own warehouse, entrepreneurs undoubtedly face numerous challenges. The construction of a warehouse takes up to a year on average. Apart from a lot of time and effort that will have to be invested, there are also a number of other bureaucratic and construction activities. 

All of these can affect a business owner’s time and resources. Although it is not a comprehensive service as is the case with the fulfillment center, the warehouse is also maintained by a group of specialized employees. Therefore, the lease also provides the flexibility to handle future business expansions and the readiness to quickly respond to current market demands and needs.

Faster and easier delivery

End customers most often require fast delivery. That usually puts the company’s resources under additional pressure and time burden. However, leased warehouses can meet distribution requirements and client needs at an affordable cost. A distribution system usually encompasses all aspects of transportation management. That includes a domestic or international carrier, and freight transportation by land, rail, air, sea, or local delivery. Being fully automated, the system identifies the most efficient and cost-effective way to deliver your shipment to the end customer.

More space

Certainly, one of the main advantages of owning storage space is the relief of crowded offices and branch offices as well as the personalization of the space. In the case of renting, companies that need more space in their headquarters can free up square footage. They can do it by moving products, freeing up internal storage, and transferring it to a larger warehouse in a more accessible location. This leased warehouse space allows companies to expand spatially. There is no need for investing in a new building. That eliminates the additional costs of property taxes, insurance, equipment, and other resources.

Professional staff

Warehouse managers also must be educated about the ways of functioning. First of all, they must know how to organize the flow of goods and products without losses. Optimal use of resources and maximum efficiency is here crucial. The warehouse manager is also in charge of inventory control. His duty is to have knowledge about tools and techniques to improve warehouse operations. Finally, managers are also expected to manage the supply chain effectively. This kind of networking, professionalism, and thorough knowledge of all aspects of the profession provides added value.

Find a storage space for yourself

Every company, regardless of the size of the business, is faced with the need for storage space in larger or smaller quantities. Most companies do not need to own their own warehouse, which is why they resort to the option of renting space. However, with the increase in demand for e-commerce services, a large number of stores and businesses need more than just storage space. In this case, the services of the fulfillment center, which also offer product receiving, storage, packaging, and shipping services, will help. If you yourself are facing logistical challenges with receiving and sending packages or you just need space to maintain products, contact us.