Many businesses, both large and small, often encounter difficulties with their stock levels – either having bought too much of something in the first place, having a large quantity of stock returned by a customer, or from simply bad business management resulting in stock overflow.
Having too much stock is clearly a problem for a business for many reasons. One of the main reasons is that, quite simply, businesses don’t have the space to store surplus stock – in fact, many businesses barely have the space to store the stock they do need.
But should this be a problem?
Many businesses nowadays seek to extend their own space by working with a local storage company. This allows them to buy more stock in one order, which usually results in a cheaper unit price, but – and this depends on businesses making sure that the storage company they use has secure and properly-fitted premises – it also allows business owners to rest assured that their stock will remain in good condition and in secure surroundings.
For instance, the owner of a food business should only partner with an external storage company that is able to store the company’s goods at the correct temperature, and if necessary in correctly sealed units.
Used incorrectly, then external storage solutions can mean nothing but additional expenses for a business. Many small businesses have in particular have decided to use an external storage company, but have failed to inspect the storage premises before signing the contract. As a result, poorly insulated storage units, cramped racking systems, and even mouse-infested premises have left companies out of pocket having signed a contract and parted with their cash.
Running a business relies upon making a series of small decisions, all of which are important to the livelihood of all staff. While many bad decisions will only have a short term effect, such as poor advertising of a special offer for example, decisions around stock control could be much more important on the long term success of a company.
Many larger businesses have supply chain directors, who are responsible for ensuring the company’s stock levels are at the right level and that the supply chain moves at the right pace, in both directions. There is no doubt that working with an external storage company can be of great benefit to a business, but it’s essential that the business takes great care before agreeing to store their goods at the storage company’s premises.
This helpful business information was sponsored by Alex Sebuliba, the Marketing Coordinator for Allstore Services LTD, Allstore focus on making life easy for those who require storage accessibility.