Consignment warehouses are cheaper

Own storage or external storage: What are the advantages and disadvantages?

logistics

The decision on the type of camp, whether Own or third-party storage, is one of the many questions you will ask yourself when setting up an online shop. You have probably already defined your product portfolio and decided on one or more suppliers.

As soon as you are ready for the first orders, calculate the necessary processes for handling, packaging, labeling, value-added services, such as markings, adjustments, etc. All of this leads to the fact that you have to store your product. And the question arises: should I start with my own warehouse or decide to outsource the warehouse?

In general, these are the Advantages and disadvantages of own and external camps:

Advantages and disadvantages of own storage

Advantages:

- More control over the operation

- Dedicated and involved staff

- Better options for prioritizing inputs and outputs

- Better adaptation of the warehouse to the product, especially for products with special handling or storage conditions

Disadvantage:

- High fixed costs

- Less adaptability to temporary order peaks

- Limited scalability

- Big investment

 

Advantages and disadvantages of foreign storage

Advantages:

- Variable costs depending on the business volume

- Great adaptability to temporary order peaks

- Great scalability

- Big investments are not necessary

Disadvantage:

- Less control of the processes

- Personnel that is not engaged and is sometimes shared with potential competitors

- Standard processes, little susceptible to modification or prioritization

- Operators usually offer standard solutions that are not adapted to special handling or storage conditions

 

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