7 Business Problems Warehouse Storage Solves

Table Of Contents:

Many businesses only turn to commercial warehousing after outgrowing their on-site storage and experiencing extreme space constraints. However, they soon realize other unforeseen improvements, including higher customer satisfaction, peace of mind due to assured security, and better inventory management, among others.

Warehouse storage is more than a space solution—it’s a business enhancer. In this article, we explore the different ways a commercial warehouse can benefit your company, how to choose a vendor that matches your inventory needs, and why Corodata may be the right fit for your business.

Top Problems That Warehouse Storage Will Solve for Your Business

Commercial storage streamlines business operations by solving the following issues:

1. Overflowing Inventory and Cluttered Workspaces

Many factors, some outside your control, can cause an inventory overflow. Unforeseen disruptions in the supply chain, changes in demand, economic downturns, and being new in a market are some reasons that can leave you with excessive stock on hand. 

Overstocking has costly consequences for a business, including:

  • Increased storage costs
  • Tied-up cash flow that could be allocated elsewhere
  • Diminished product value over time
  • Low or zero-profit sales
  • Inefficient work environment due to physical overcrowding 

Implementing offsite business storage for inventory overflow frees up valuable space for your business, streamlining both the workspace and its daily operations.

2. Delays in Shipping and Order Fulfillment

Product-selling businesses don’t always consider shipping and logistics beyond selecting a delivery company. When the business grows and requires dedicated office space, thought needs to be given in regard to their proximity to distribution hubs. Again, leaving the logistics to delivery companies.

This lack of dedicated small business inventory storage can disrupt shipping and order fulfillment workflows. Studies show that the quality of your order fulfillment coordination can impact customer satisfaction and brand loyalty.

Warehouse storage companies have fulfillment and logistics integration to facilitate a smooth delivery process to your customers. Their facilities are strategically located near shipping zones and distribution centers, reducing delivery times and ensuring your customers’ satisfaction and loyalty.

3. Seasonal Inventory Challenges

Seasonal businesses, such as holiday-themed shops and outdoor equipment retailers, have fluctuating inventory needs. High-peak seasons require more stock and, consequently, more storage space compared to low seasons. 

Service-based companies that operate seasonally, such as snow removal services, require more storage space for their equipment in the summer than in the winter. Similarly, a corporation may need storage for holiday-themed merchandise and promotional material when it’s off-season.

An offsite warehouse storage facility offers the flexibility to choose between short-term vs. long-term storage. Businesses can scale up storage space as needed during peak seasons and downsize when transitioning to lower sales volumes. This short-term leasing ultimately saves costs by eliminating the need for permanent infrastructure investment.

4. Risk of Loss or Theft On-Site

On-site facilities are equipped with just enough security, but it’s often insufficient compared to the value of the inventory stored. Administrative errors, theft, spoilage, fires, vendor errors, and misplacement can all lead to inventory loss and decreased revenue. Most office storage also lacks insulation from fires and natural disasters. 

Office records and electronics may contain sensitive data whose loss or theft can have dire legal consequences and brand reputational damage from data leaks. 

Commercial warehousing offers enhanced commercial-grade safety measures, including 24/7 surveillance, alarms, and security personnel, which significantly reduce the risk of loss or theft. Safeguarding business records in an off-site location also upholds compliance for some industries and reduces the risk of a data breach.

With such investment in security and access control, you’ll also be creating a strong business continuity and disaster recovery plan through warehouse storage.

Download the Comprehensive Records Management Guide

5. Inefficient Use of Prime Business Real Estate

Storing your backstock and unused materials in the office may seem more cost-effective, especially if you’re just starting out. It’s convenient for retrieval and gives a sense of control over your inventory. 

However, this often turns costly down the line as a business expands and product demand grows. Soon, the in-house storage becomes a waste of expensive customer-facing square footage, not to mention the labor and space management costs.

Commercial storage offloads these items from your office space, allowing the repurposing of core space for revenue-generating activities. For example, a fashion store can use the extra space freed up to install more fitting rooms, thereby reducing customer queues and improving in-store purchase experiences. 

Another example is using the extra space to redesign into office spaces that are more collaborative or support new and improved ways of working.

6. Difficulty Scaling Operations Quickly

Lack of sufficient space can delay your dreams of scaling up. Even with additional labor, office equipment, and employee training, having no space to expand will keep your business stagnant. 

Business owners with in-house storage can acquire more space through buildouts, but this depends on whether there’s extra space and budget for new facilities to begin with. 

Commercial warehousing is the ideal scalable storage solution for growing businesses. With small, medium, and large spaces, you can choose the option that matches the stage of growth at which your business is. The ability to expand with ease facilitates growth and helps adapt quickly to demand surges and competitive markets.

7. Lack of Visibility Into Stored Items

Many businesses, especially in their nascent years, rely on spreadsheets, manual audits, and physical labor to manage and track inventory. Unfortunately, this quickly becomes ineffective when customer demand increases and inventory levels rise. Stock loss goes unnoticed, discrepancies accumulate, and your employees are forced to spend hours tracking inventory instead of fulfilling orders. Restocking and forecasting become even harder to achieve when you don’t have a centralized view of what products you have in stock and how fast they’re moving.

Warehouse storage facilities invest in hi-tech innovation for enhanced inventory oversight. This offers you a clear picture of what’s in stock, what’s needed, and what you have in excess. The upgraded visibility enhances stock accuracy, reduces lost items, and facilitates accurate forecasting for restocking.

Key Features to Look for in a Commercial Storage Facility

The best warehouse features depend on the type of business you’re running. For instance, a clothing store may consider security and inventory management when selecting a commercial storage facility. At the same time, a health facility owner may be more concerned with temperature control and short-term leasing features.

Consider your specific storage needs and use that as a checklist when interviewing vendors. If you’re uncertain about what to look for or your business’s warehouse needs, speak with the trusted team at Corodata to get started.

Some common key features to look for are: 

24/7 Security and Access Controls

Whether you’re storing inventory, business records, sensitive documents, or high-value equipment, you need the peace of mind that your items are always safe. Inventory loss and equipment theft can cause significant financial setbacks, while unauthorized access to sensitive documents or business data can result in costly legal penalties and fines.

Secure warehouse space for small businesses must have the following safety features:

  • 24/7 surveillance: CCTV cameras, security patrol guards, motion sensors, and alarm systems provide round-the-clock monitoring of warehouse storage and alerts in the event of a security breach. Surveillance deters unauthorized entry and can provide valuable evidence in the event of an incident. 
  • Controlled access: Restricted entry ensures only authorized personnel handle your inventory. Security systems, such as keypad locks and biometrics, manage access to storage for warehouse employees and visitors, controlling entry and exit.
  • Inventory management: Commercial storage facilities must have measures in place to track inventory and prevent loss or misplacement. This includes regular inventory audits, designated storage for items based on their value and confidentiality, and assigned loading docks for a streamlined flow of goods.

Climate-Controlled Storage 

Sensitive inventory items, such as electronics, artwork, pharma products, perishables, and legal documents, require climate-controlled environments for optimal storage. This prevents damage by protecting against humidity changes, temperature swings, and infestations.

A commercial storage vendor can offer professional advice if you’re not sure your business needs climate-controlled warehouse space. 

Short- and Long-Term Leasing Flexibility

Adaptability and resilience are crucial for navigating today’s rapidly changing business landscape, according to the World Economic Forum (WEF). Flexible warehousing contracts enable businesses to adapt smoothly by providing both short-term and long-term commercial storage leasing options.

This allows scaling up and down as needed without the financial burden of unused spaces during downtime or order delays at peak season. Exploring new markets and adapting when a product is no longer profitable becomes faster, keeping you one step ahead of competitors.

A company that expects demand surges during certain times of the year may use the month-to-month contract to adjust its warehouse storage as needed. Long-term leasing, on the other hand, is ideal for businesses with steady, high-volume inventory levels with minimal fluctuations.

Pro Tip

When comparing storage vendors, don’t just focus on cost. Evaluate whether the facility offers scalable space, modern inventory tracking, and 24/7 support—these features often save far more in the long run.

Learn More

Transparent Pricing With No Surprise Fees

Warehouse storage pricing can be complex because different factors unique to your inventory needs determine the total cost. They include technology integration, types of goods stored, space utilization, storage methods, security needs, and so on. 

When hiring a warehouse vendor, ensure that their storage features match your business needs. Cost-effective storage options should clearly outline what’s included in your storage, what’s not, and any hidden charges you should be aware of. This keeps your costs predictable and allows for easy adjustments at any time. 

Is It Time for Your Business to Go Offsite?

Despite the potential savings and other benefits of warehousing, businesses still wait too long to invest in commercial storage. A recent third-party logistics (3PL) study reveals that many companies tend to invest in warehousing space as a reactive strategy, typically after operational inefficiencies have already occurred. They attempt to save on upfront costs, focus on short-term efficiency rather than long-term cost savings, or simply lack the right expertise and talent to shift to warehousing. 

Unfortunately, this often results in higher costs in the long run, low customer satisfaction, and missed growth opportunities for businesses. 

You need off-site storage if your business is experiencing any of the following signals: 

  • Overcrowded storage spaces, such as having to keep inventory in hallways
  • Renting temporary storage regularly
  • High or increasingly expensive onsite storage costs
  • Poor traffic flow in your current storage due to clutter
  • Delayed or missed customer orders due to storage and logistics issues
  • High-value items in under-equipped storage
  • Business expansion, such as entering new markets located far from your site
  • Seasonal, volatile, or fluctuating market demand 

Cost Benefits of Using Warehouse Storage

Upfront costs and the need to preserve cash flow often hold businesses back from investing in warehouse storage. However, the long-term savings of outsourcing inventory storage are undeniably higher. The cost of addressing the consequences of poor storage, such as negative customer reviews and logistical chaos, can also be steep, and implementing solutions may take even longer. 

Secure warehousing saves costs by:

  • Reducing or eliminating overhead costs, such as administration, insurance, and repairs
  • Avoiding facility expansion after business growth
  • Freeing up office or prime retail space
  • Improving inventory management
  • Implementing efficient order fulfillment processes
  • Eliminating the costs of improper equipment disposal
Factor In-House Storage Commercial Storage
Initial costs High because it requires purchasing or renting space, equipment, shelving, and labor. Low to moderate, as you can pay for space and additional services as needed.
Ongoing costs You’re responsible for ongoing costs, such as insurance, security, utilities, and maintenance. Lower ongoing costs due to shared storage space and bundled services.
Scalability Limited options for scaling up due to the additional costs and space required. Easier and cheaper to scale up and down based on demand changes.
Technology integration Costly and complex, especially without the right talent Seamless, with features such as barcode scanning and real-time tracking.
Inventory management Prone to inefficiency without a proper warehouse management system (WMS) or the right expertise. Optimized inventory management processes through commercial-grade WMS and qualified staff. 
Hidden costs Likely to be high, including training, downtime, staff turnover, inefficiencies, and excess inventory. Zero to none due to transparent and clear cost pricing structures.

Get Secure, Flexible Commercial Storage With Corodata

For over 75 years, Corodata has supported thousands of local businesses in finding secure and seamless commercial storage solutions. We have five top-grade storage facilities strategically located across California to ensure efficient warehousing, excellent customer support, and enhanced logistics.

Whether you’re looking for short-or long-term warehouse storage, our team of experts can create a flexible and scalable solution that matches your unique inventory needs. With our easy-to-use online portal, you can track your inventory from pickup to customer delivery, including placing orders with suppliers.

Do not wait until your inventory overflows or customers begin to complain due to missed and delayed orders. Get a free quote or speak with our commercial storage experts today to understand how you can save costs through warehousing.