What is Off-Site Warehousing?
When you own heavy machinery, it has to go somewhere when it isn’t in operation. You can either store it onsite at your property, or you can store it at an off-site warehousing facility. Equipment warehousing facilities like Able’s warehouses are purpose-built to store large machinery and vehicles when they aren’t in use.
There are a lot of differences between onsite and offsite warehouse storage that you’ll want to consider before decommissioning a piece of equipment. If you are trying to determine which option is best for your operation, the information below can help.
Off-Site Warehousing vs On-Site Storage
Should you go with an offsite warehouse or store equipment on-site? In a perfect world either would be an equally ideal option, but in actuality you may find that one storage solution is superior to the other. Here’s how to know which machinery storage option will get the job done.
Evaluating Your Existing Property for Storage
First and foremost is determining if your property is suitable for equipment storage. The considerations go beyond having the space to store machinery, which is an obstacle for many companies:
- What is the environment like?
- Is it ideal for storing machinery, or will you need to construct a storage area that allows you to properly protect equipment?
- How secure is the site?
- Can you add additional security measures to secure the machinery?
All these logistics have already been figured out at an offsite storage facility, and there aren’t as many limitations on what and how much you can store.
Resource Management with Off-Site Warehousing
Many companies find that offsite warehouse storage allows for better resource allocation. By better resource allocation we mean physical space as well as manpower and attention. Unless you’re in the storage industry, managing warehouse facilities takes time and attention away from activities that are more beneficial for your business.
By outsourcing the storage, you free yourself up to focus on your core business activities and get more done with the resources you have. Partnering with a storage warehouse facility also means that additional resources are at your disposal to help you increase productivity and profitability.
Short-Term vs. Long-term Storage
There are two storage scenarios that could help determine where equipment is stored. It could come down to whether you need Short-Term or long-term storage.
What is Short-Term Storage?
Short-Term equipment storage is often needed prior to the start of a project or during the project. Offsite warehouse storage can help keep the project site clear while still providing access to machinery so that there aren’t any project delays. But if the machinery is only going to be sidelined for a few days it may make more sense to keep it onsite.
What is Long-Term Storage?
Long-term storage refers to the secure, protected storage of rigging equipment, machinery, or materials for extended periods, ensuring their preservation and readiness for future use. This includes proper maintenance and environmental protection to prevent damage or deterioration over time.
Advantages of Off-Site Storage
Using offsite warehouse storage can be beneficial beyond the convenience factor. There are some other important advantages of off-site storage you’ll want to consider.
More Storage Space for Your Business
There are costs related to offsite warehouse storage, but it also frees up space at your facility for more than just storing equipment. You may find that there are more valuable ways to use the space that more than make up for the cost of long-term offsite storage. And if you want to expand your operation, you’ll have much more room to grow at an offsite warehouse.
Cost-Effectiveness of Off-Site Storage
Storing equipment isn’t a sit it and forget it job. There are upfront and operational costs involved that can add up over time. Even our clients that don’t have to build a warehouse facility at their location consider offsite warehouse storage to be cost-effective since it eliminates certain operational costs related to storing and maintaining the equipment. The manpower, time, energy and other resources add up to $7.79 or more per square foot. Warehouse facilities have dialed in the logistics to reduce costs as much as possible.
There are also ancillary money savers related to offsite storage. When you use an offsite warehousing service you’ll circumvent operation costs, plus you’ll get free inventory of your equipment and help with inventory logistics.
Enhanced Security Measures
One of the biggest advantages of offsite warehouse storage is the added security. Equipment warehouses should have top of the line security features to ensure machinery is secure at all times. Facilities may be gated, hire security guards and have 24-hour surveillance systems.
An added bit of reassurance is knowing the warehouse facility should have insurance coverage should something happen to the equipment stored onsite.
Improved Project Efficiency
Warehouses have evolved in recent years and are now a true extension of the businesses they serve and can be an integral part of project efficiency. Manufacturers are finding that warehouse storage enables better project buffering. If anything changes or there’s an unforeseen event, project buffering allows you to make agile adjustments and get heavy machinery where it needs to be on time so that there are no delays.
If you have multiple locations an offsite warehouse facility can serve as a central hub where all locations can easily access equipment and supplies that are better organized. And there are several ways warehouse facilities can improve project efficiency if you are picking, packing and shipping a large number of products. The improved inventory management alone can make projects more efficient. You’ll have more control over the flow within the supply chain and more flexibility for your storage capability.
Choosing the Right Off-Site Warehouse
Assessing Your Storage Needs & Transport Capabilities
Today’s warehouses are capable of more than simple storage, and even when storage is all you need, a warehouse can still help you improve proficiency and reduce labor costs.
There’s no way to choose the best off-site warehouse without first understanding your storage needs. Ask yourself a few questions to zero in on the type of off-site warehouse that will suit your storage needs best:
- Do I need storage alone or additional services?
- What do I need to store?
- How much is my operation spending on labor to store equipment onsite?
- Are we already at maximum storage capacity or is there flex space?
- What are the projections for machinery storage in the near future?
- Can I transport equipment safely?
The cost of labor is one of the biggest factors for choosing an offsite warehouse. Skilled warehousing specialists are expensive to hire and even harder to come by these days. Many of them are already working at warehouse facilities. Simply not being able to secure the manpower that’s needed is reason enough for some companies to turn to offsite warehouse storage.
Key Factors to Consider
Once you know what you need, you can start weighing other factors, such as:
- Location
- How far is the warehouse from your location?
- What is the facility located around?
- Are there any environmental or weather concerns?
- Security
- Is the warehouse facility gated?
- Does it have a security system in place?
- Is there 24-hour surveillance?
- When are security guards onsite?
- What is needed to access the facility?
- Services
- Is there climate controlled storage?
- Can the facility provide crating services?
- Do they have machinery specialists onsite?
- Does the facility have the equipment needed to move machinery?
- How well staffed is the storage facility?
- Cost
- What is the monthly storage rate?
- Are there long-term discounts?
- Does the storage facility offer discounts with other services?
- How does the monthly cost compare to storing onsite?
These are just some top level considerations that apply to essentially every business. Take the time to think about your unique requirements, and correspond with equipment manufacturers if you’re unsure about what storage conditions are best for your machinery.
Conclusion: Enhancing Business Operations With Off-Site Warehousing
Partnering with a third-party offsite warehouse can be a strategic move that improves your operation and project efficiency in many ways. The benefits extend well beyond better space allocation at your job site or facility. With the right warehouse partner you can lower operation costs by eliminating expenses that are related to onsite storage. Better control over the flow of supplies and access to machinery also helps prevent costly project delays.
All businesses today that manage a large volume of inventory or utilize heavy machinery that takes up a lot of space should consider off-site warehousing. After analyzing your overhead and operational costs you could find that outsourcing some of the work will be better for your bottom line and allow for more growth.
Any business that’s considering offsite warehouse storage can give the experts at Able Machinery Movers a call. Let us know what machinery needs to be stored and we can provide professional insight on storage options and what solution will help lower costs while increasing efficiency.
Talk with a warehousing specialist to learn more!
FAQs About Off-Site Warehousing
What are the main benefits of off-site warehousing?
More flexibility in how your own space is used, lower operational costs, enhanced security, and improved project efficiency are all benefits of using off-site warehousing.
How do I choose the right third-party warehouse?
The first thing to consider is how secure the warehouse facility is in terms of physical security and insurance coverage. Location is also a big factor, particularly if you will need to visit the warehouse or move machinery on a regular basis. The additional services provided and facility itself are also important when determining which third-party warehouse is the best option.
Ideally you want to find an established warehouse facility not too far from your location that has adequate space, specialists who are experienced at moving machinery and the equipment that can handle the job.