Warehousing Woes: 3 Reasons You Shouldn’t Take The Reins Yourself

by Michael Kotendzhi | Trucking
Warehousing Woes: 3 Reasons You Shouldn’t Take The Reins Yourself

Container trucking companies are heavily relied upon to transport consumer products and foodstuffs across Canada’s expansive land; the trucking industry is worth over $65 billion, revealing just how crucial it is to the nation’s logistics.

If you own a business that sells a physical product, you undoubtedly utilize heavy haul carriers to handle your commercial logistics and may be considering cutting out the middleman by buying a warehouse of your own. Though your intentions may be pure, the reality of the situation is a bit more complicated than you know;

here are three reasons why you should leave the warehousing and distribution services to the professionals.

  1. You have to hire, train, and manage employees. Functional warehouses are like businesses within your business; you’ll need a full staff of employees trained to manage operations, meaning you’re going to be responsible for finding, hiring, and training them. Warehouses require an investment far beyond just buying a building.
  2. You might end up paying for more than you actually need. Business needs fluctuate based on market demands. For example, the holidays may force you to expand quickly, while the rest of the year is minimal in comparison. If you own your own warehouse, you’ll have to pay for a bunch of extra space that only gets used a handful of times throughout the year; if you outsource, you’ll be able to take advantage of scalable storage solutions that change based on your needs.
  3. You might end up running out of space. The opposite can happen as well. If business begins to truly boom, you could face serious storage issues and will most likely miss out on sales opportunities; you’ll be forced to buy another warehouse (which you might not fully need), adding a massive expense on top of the whole situation. Outsourced warehousing services are guaranteed to grow and expand as you do, so you’ll never wind up in a bottleneck scenario.

At the end of the day, owning your own warehouse simply isn’t worth the hassle. Rather than worry about the stress of successful warehouse management, focus on what really matters: running your business. By outsourcing your warehousing and distribution sector, you can utilize your time most effectively.

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.