Let Customers know about Warehouse Availability
A logistics operation needs to have multiple revenue streams to offset the various cost that comes with a mature operation.
Warehouse Rents are usually a high cost line items on a company's income statement. And offsetting rent cost with revenue generated by deliveries can be a problem. This is particularly the case because driver commissions offset delivery revenues, so only a portion of your sales can go towards offsetting rent cost. Similarly, income produced by cross-docking operations also carry high labor cost. But revenues generated by long-term storage is a direct offset to warehousing cost.
It is not easy to find a long term storage customer, especially in the logistics industry, where professionals are hired to ensure there is little waste in the supply chain.
But there are unforeseen and real examples of clients who need long-term storage. And by long term, I do mean customers with freight that sits in the warehouse without any inbound and outbound activity for more than 30 days.
Customers have backlog issues. They outgrow their internal staging areas where freight is kept while production is in full swing. And when clients run out of space, they face the choice of killing production or finding a third party warehouse who can store freight while orders are completed. And thats where your company can offer a solution.
It is important that customers know about space we have available for hire. Our warehousing services can offer a mutually beneficial solution to both our customer and our landlord!