Start-up companies often struggle to raise the necessary funds to finance growth. Often, they need storage and distribution resources, which they try to do on their own. This may sound like a good idea, so the control of these factors remains within the company. However, buying a repository, working on it, acquiring resources, and acquiring knowledge is time-consuming and expensive. The fact is that the asset retention and distribution of the first growing company should be excluded for very good reasons.

Reduced Warehouse costs

Buying an existing warehouse is deceptive - the space should be large enough and set up logically and productively. In addition, staff should be recruited and trained, procurement of tools, establishing processes, and list goes on. This adds to the important pre-investment, and many start-up companies cannot do it all on their own. Disposal of goods means that space, equipment, technology, and personnel are already in place. All additional costs are the responsibility of the transportation company, not the startup, which helps reduce the cost of flexibility.

Better Product Distribution

Distribution involves the actual transfer of products by one or more mediators before they reach their final destination. A lack of knowledge in this field leads to errors that disrupt the distribution process. The inability to distribute products can lead to a decline in sales and customer service, which can quickly become a financial crisis. A well-distributed distribution company helps businesses expand their access to new markets quickly and efficiently. In addition, many distribution companies offer other value-added services, such as packaging, to improve assistance in the distribution process. These types of services help companies manage their supply chain and maximize profits.

Enhanced Company Image

Ineffective processes, at any level, can have a detrimental effect on a company’s image. Customers are easily offended by mistakes and immediately jump into the boat when their tolerance limit is exceeded. If a company's warehouse lacks sufficient organization or staff, products cannot be delivered properly, and customers are left with nothing. Similarly, if the distribution channel is malfunctioning or poorly managed, the delivery will not arrive as soon as it is delivered, disrupting the schedules of the receiving company. Delivery resources and distribution facilities overcome these barriers and create a smooth process that benefits everyone involved in the supply chain.

No matter how small or great your first company is, you have a big decision to make when you are ready to expand. Are you using your money to invest in your property, or are you investing in a reputable transportation company? Look at the numbers and decide what other business activities you can improve with extra savings by withdrawing money. Such savings can open the door to further growth and 13SQFT.COM can help you achieve them.