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Nanjing Kingmore Logistics Equipment Manufacturing Co.,Ltd
Head office: RM. 1204, BLDG.-2, NEW SPACE DEVELOPMENT CENTER, NO.126 TIANYUAN RD., JIANGNING, NANJING, CHINA.
Factor 1: No.8 Xingfu Ave. Hengxi St., Jiangning, Nanjing, China
Factor 2: No.896 Jianshe Road West, Economic Development Zone, Jinhu County, China
Tel: +86-25-86154259
Fax: +86-25-86154259
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E-mail: sales@kingmoreracking.com

Choose Outsourcing Storage Service Or Not -part 2

- May 14, 2018 -

 

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Newly set RDC or DC, new investment in manpower, equipment, etc.


For any company's development, the resources in the headquarters area must be of the highest quality and richest, and can maximize its role.


When the customer's business develops to a different place or country, it is necessary to start setting up a warehouse or setting up a regional distribution center. In this case, setting up a warehouse yourself is not as good as outsourcing to a professional company to operate a warehouse. Because you are not the best understanding of local resources. However, if you want to find a warehouse with better cost performance, you need to consider whether the distribution cost, the corporate image of the warehouse and the company's development, whether the surrounding staff accommodation is convenient, whether the staff recruitment is easy, the local salary level, etc. Under such circumstances, it is recommended to outsource, Give it to a professional company
 

Only want to do the main business, outsourcing


A e-commerce company that develops or grows needs to train its own team, personnel training, warehouse management, leasing warehouses, and process systems, and so on. There are big problems, especially expenses. In teams, venues, etc., spending more than 1 million a year is normal. Most of the team's CEOs have strong sales capabilities, but they are often not good at warehouse management. However, they know that it takes a lot of time to train their own team of warehousing professionals, so they would rather outsource the warehouse.


In short, because order volatility and the difficulty of warehouse management have a great relationship with costs.

From this perspective, order fluctuations and costs are the core considerations for outsourcing. When e-commerce companies want to rapidly develop their occupation of the market, managers need to consider whether the warehousing and distribution links need to be outsourced. What problems can be solved in development and what problems are important in order to achieve the company's strategic goals.


Compared with self-built warehousing, warehousing and outsourcing has great advantages in terms of human input, capital investment, enterprise management, storage costs, and product turnover. With the trend of informatization, specialization, segmentation, and service-oriented trends, warehousing and outsourcing can effectively reduce the company's operating costs and management investment.


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How to choose suppliers for warehousing outsourcing?

Mainly considers the following aspects:


1. Is the management team professional: management mechanism, past operating experience, and perfect service capabilities;
2. Whether the storage system meets its own business needs;
3. Whether the warehousing service provider can quickly meet the rapid development of business requirements: such as manpower, such as warehouse resources, such as national network service capabilities;
4. Outsourcing cost advantage;
5. Abnormal problem solving ability, ability to resist risks, hard power of funds, etc.

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