Whether you own your own warehouse or rent the space from a third party, the outsourcing of warehousing functions almost always saves money. If your business experiences seasonal or other fluctuations, it makes no sense to pay for aisles of empty racking. Nor does it make sense to pay for equipping a warehouse with everything from safety barriers to forklift trucks or adding extra employees.
By outsourcing, the cost is spread among multiple clients. As a result, you can free up capital if you’re renting or even avoid the upfront cost completely if you are choosing between your own warehouse and an experienced third party provider.