Choosing the right storage and warehousing solutions for your business depends on numerous factors, including inventory type, budget requirements, and business characteristics.
Short-term storage, or warehousing, holds your freight under contracts that last days to a few months. Short-term storage can be a cost-efficient solution for businesses that require more flexibility and scalability and is ideal for businesses when they need extra space but not on an ongoing basis.
Short-term warehousing is an ideal choice when you’re looking for cost-efficient storage solutions. By only paying for the storage you need, for the short time you need it, you can avoid lengthy contracts and paying for empty warehouse space.
Choosing the right storage solutions requires a look at your inventory needs. You should identify the amount and type of inventory you need to store, how long you need to store it, and if it’s fast-or slow-moving.
If you have seasonal sales throughout the year, then short-term warehousing is ideal. You can keep your inventory stocked only for the amount of time you need while taking advantage of the shorter retrieval and transportation times. If your business utilizes product drops, which are typically limited-run offers only available for a short period of time, short-term warehousing can help you manage your inventory flow.
Scalability, and where your business is in that process, can affect which storage solution is right for your needs. If you are growing but unsure about the amount of storage capacity needed, starting with short-term storage before jumping to long-term solutions can help you avoid being locked into a long-term contract for space you might not need.
Long-term storage, or warehousing, holds your freight under contracts that are typically at least 6 months. Long-term storage can be more cost-efficient for businesses that don’t plan on scaling in the near future, are looking to maximize storage capacity at the lowest cost possible, and know how much storage space they will need over a longer period of time.
While short-term storage solutions can be more cost-efficient if you are unsure of your long-term storage needs, long-term storage is the more cost-efficient option if you know what your storage needs are over the full length of the contract as this can give you a lower month-to-month rate.
Taking a look at your inventory needs can help you identify if you need long-term storage. If your inventory needs to be stored over the long-term, is slow-moving, and you don’t need fast retrieval, then long-term storage could work for you.
Unlike businesses with seasonal sales throughout the year, seasonal businesses are only operational for a particular season. Companies that specialize in holiday events, specific yearly concerts, or annual trade shows, for example, will want to utilize long-term storage.
Not all businesses are in the process of scaling or have plans to do so. If you know your long-term storage capacity needs, and short-term flexibility is not an express need, then long-term storage contracts will better help you manage costs.
Cross Dock to Dock provides clients with a set of comprehensive storage solutions to meet their unique business needs. Choose from short-term or long-term storage contracts, and store your inventory in our state-of-the-art, climate-controlled warehouses that come with 24/7 security. Contact a Cross Dock to Dock representative today to find the best storage option for you.
