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How Ecommerce Companies Can Cut Logistics Cost
Warehouse
Startups tend to build their own in-house warehousing capabilities. However, it is only possible to serve a certain maximum number of orders from their own warehouses beyond which all of it gets unrealistic to handle. Think of the kind of rental, inventories and people cost they would need to incur on running warehousing facilities of their own. Managing inventory costs involves monitoring inventory levels, calculating lead times, forecasting and communicating with vendors. The entrepreneur can better outsource the warehousing and instead focus on the main business. But before outsourcing, he should confirm that the warehouse would not propose any issue in the future, for example, if you rent a warehouse investing a lot of money and later find that the warehouse is not suitable during the monsoon period, then you cannot turn down the agreement as you have made a vast investment.
