Warehousing costs are an important part of logistics, and they can make or break your budget. In a world where immediate shipping is all the rage, it’s important to understand the factors that influence these costs to optimize them to your advantage and save with each shipment.
At GFS Logistics, we believe in offering affordable warehouse storage and use our warehouse management system (WMS) to help our clients save money while they store between shipments. Let’s explore what affects warehousing costs in logistics and how you can save money through best practices wise warehouse management.
What You Store in Warehouses
The first factor to consider when discussing warehousing costs is the type of products you are storing. If you need specialized, climate-controlled or hazardous materials storage, then expect to pay more for this service than if you only needed regular warehouse space.
Additionally, suppose your orders consist of multiple items with different sizes or shapes. In that case, it requires additional labor for sorting and shelving, which can also increase the cost.
Warehouse Size and Location
Warehouse size is one of the most important factors affecting warehousing prices. Generally, larger warehouses are more expensive than smaller ones, as they require more space and resources for storage.
Additionally, the warehouse location plays a major role in cost optimization. Warehouses closer to major transportation hubs tend to be cheaper than those more remote.
Although our warehouse is massive, our central hub in Dallas allows us to make storing your goods with GFS Logistics affordable.
Warehouse Services Offered
The type of services offered by a warehouse can also affect its cost. For example, if you require specialized services such as inventory management or temperature control, this will add additional charges to the overall cost of warehousing.
Before you commit to a warehousing company, it’s beneficial to review all available options when considering which warehouse to use for your operations in order to cut down on unnecessary expenses. Between pick and pack and inventory management, it’s easy for the overall costs to inflate the cost of using a warehouse.
Warehouse Staffing Costs
There are two main components in warehouse staffing: labor costs and overhead costs.
Labor costs refer to the wages paid out for employees working at the warehouse, while overhead costs include things such as power and utilities bills associated with running a warehouse.
It’s essential to factor in both types of staffing costs when calculating your total warehousing budget.
Strategies to Reduce Warehouse Costs
Here are a few strategies to save money on warehousing costs without sacrificing quality services.
During your warehouse search, look for warehouses that offer discounts for long-term contracts or bulk orders.
Also, consider shared warehouse space if you only need seasonal access to a warehouse. When you use your space only when you need it, you can save money on your warehousing costs in the long term.
Most warehouses are willing to negotiate payment terms such as extended payment plans or discounts for early payments. So, it’s important to ask what pricing options warehouse management may offer available before making any commitments. Contact us for a price quote to utilize our warehouse space.
Warehouses like GFS Logistics utilize advanced WMS technology. Our WMS Analytics solutions can help streamline processes and reduce labor costs associated with warehousing operations, such as automated inventory systems and robotic picking devices.
Affordable Warehouse Storage with GFS Logistics
Warehousing is an integral part of any business’s logistics operations, and understanding how different factors affect warehousing costs is key to optimizing them for your budget. By considering the factors we’ve discussed, you can easily save money on your warehousing expenses without sacrificing quality or service levels.
The key to successful warehousing is finding a logistics partner to meet your needs. The team at GFS Logistics manages a 1.6 million square foot warehouse with technological and physical capabilities to satisfy your warehousing experience.
Contact us today to learn more about our services.