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Logistical nightmare? How to cope with an overflow of stock

Logistical nightmare? How to cope with an overflow of stock

If you run a retail or manufacturing business, or indeed any company that deals in physical products as opposed to services, the chances are that at some point you will have to deal with an overflow of stock.

Spikes in demand, large one-off orders and changes in your circumstances (e.g. a move to new premises) can all leave you with more goods on your hands than you can store on-site.

So what are your options when it comes to dealing with this logistical challenge? Most businesses turn to a local storage and warehousing provider because of the convenience. This is a very attractive option but beware – not all warehouses are equal! Here’s a quick checklist of things to look for in a provider:

·         Flexibility

Does the warehouse offer both block stored and racked storage? Will it charge you on a per-pallet, per-day basis or will it use a less flexible model? Is there a minimum number of pallets that you will need to take out, regardless of how many you need? Some providers will attempt to tie you into a long-term contract involving a specific number of pallets, even though you are only dealing with a temporary overflow of stock. Make sure you only pay for the storage you actually use.

·         Accessibility

As well as choosing a warehouse that’s local to you, be sure to check the opening times. It may sound obvious, but it’s vital that the site will be able to handle those early morning and late night deliveries. You’d be amazed how many businesses forget to check this kind of detail before deciding where to store their goods.

·         Security

It goes without saying that you will want your goods to be safe and secure whilst in storage. Make sure the warehouse has working CCTV cameras both inside and out, and has the relevant cover and insurance in place in case of accident.

Tags: Packaging & Sales

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