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Why Your Warehousing Business Is Not Taking Off

Starting a warehousing business may seem like an easy task, but it requires a lot of hard work and dedication.

A lot of people think that starting a warehousing business is easy. You just need to find a space, set up some shelves and start renting out storage units. However, there is a lot more to it than that. Any business that operates its own warehouse operations for order fulfilment and logistics is bound to experience challenging situations. This is because so many factors go into warehouse management, and smaller details can get overlooked and wind up, causing unforeseen problems and supply chain bottlenecks. Therefore, it is essential to consider certain factors to ensure that your warehouse operations are as effective, cost-efficient, and reliable as possible.

As such, many corporations seek help from business processing outsourcing (BPO) providers to outsource their warehouse and logistics operations to relieve these issues from falling to them as a business owner when they should be doing other things with their time. An established third-party logistics provider (3PL) or warehousing BPO company can manage all of your inventory for you without you having to handle storage, pick and pack the products, take deliveries, and organise and sort everything.

If your warehousing business is not taking off the way you had hoped, there are a few reasons. And suppose you face any of these big challenges too often when managing your own warehouse. In that case, it might be time to talk to a logistics outsourcing company about options to help support your business.

In this blog post, we will take a look at some of the most common mistakes business owners make when starting and managing a warehousing business and how a BPO service provider or 3PL can help you and your warehousing operations.

Keep on reading! 

Top 7 Reasons Why Your Warehousing Business Is Not Taking Off

You’ve been in the warehousing business for a while now, and things aren’t taking off as you had hoped. You’re not alone – many small businesses struggle to get off the ground. Here are some potential reasons why your warehousing business isn’t taking off, along with how 3PLs/warehousing BPO vendors can help you. 

Communication problems

Good communication is one of the critical functions of an efficient and smooth warehouse supply chain. Because of this, it is salient to set up your methods to boost productivity. People involved in every aspect of warehouse operations need to be able to communicate their decisions quickly to one another. It can seriously hinder your ability to execute agile picking, packing, and shipping if they aren’t. To elevate effective communication, you will need to figure out the tools, applications, software, and more necessary to run your warehouse. It all comes down to process, and every function needs to flow easily within the space they support, which, fortunately, a logistics and warehousing BPO provider can render you. 

Perils of inventory tracking and forecasting

You must store your products in the correctly identified areas of your warehouse. Unfortunately, there are many pitfalls that you will encounter that cause a breakdown in this process, such as inaccurate receipts or purchase orders. Your employees need training in handling these issues as they arise to ensure that they are on time in your supply chain. 

Leveraging inventory management software is one of the best ways to track your products. It can operate throughout every area of your logistics/warehousing process to help keep accurate inventory counts and help you plan for how much you need to keep on hand at a given time. However, the downside is that it often takes a significant investment in both the software and the time it takes to train all of your staff on how to use it properly. With warehousing outsourcing, you don’t have to worry about these because 3PLs/warehousing BPO firms already have specialised experts to work for you and state-of-the-art technology. 

Inadequate customer relations

In the current world of modern order fulfilment, consumers have come to expect that their orders will arrive as quickly as they want, even on the day that they order. Of course, timing and accuracy are essential, but what is more crucial is that you can render adequate customer service to set expectations and keep your customer informed as their product moves through the chain toward them. 

Moreover, if customers feel they are not taken care of in this manner, they may leave negative feedback online about your brand or leave your brand for another. Keeping your customer service technology tool up to date will help, just as much as keeping your warehouse inventory accurate so that shortages, delays or stockouts don’t occur will help too.

Pricing is not competitive

If your prices are too high, potential customers will go elsewhere. So make sure you know the going rates for warehousing services in your area and price accordingly. Luckily, a 3PL/warehousing BPO vendor can assist you in making your products and services cost-efficient while keeping the quality of it the same. 

Haven’t invested in marketing

Awareness is key when it comes to getting your business off the ground. If potential customers don’t know you exist, they can’t use your services. So invest in your marketing by outsourcing your marketing efforts – whether online ads, traditional advertising, or even just posting flyers in local businesses – to get your name out there.

Unable to provide value-added services

In today’s competitive marketplace, simply storing goods isn’t enough. You need to offer value-added services that will make your company stand out. This could include pick-and-pack fulfilment, product assembly, or even providing helpful resources on your website. Many BPO companies specialising in logistics and warehousing outsourcing offer this option, which is a massive advantage for you. 

You’re not staying up-to-date with technology

The world of warehouse management is constantly changing – and if you’re not keeping up, you’ll be left behind. Make sure you’re using the latest software and technologies to streamline your operations and provide a better experience for your customers. When outsourcing, your business can expect access to advanced picking process tools, inventory management software like what we mentioned before, and many more that can eliminate human error and help keep an updated inventory accounting. Remember, the more automated processes you employ, the more optimised your warehouse picking operations will become.


Running a warehousing company is a difficult task. It takes careful planning and the use of technology to minimize costs.

In hindsight, it is evident that there are many factors to consider when it comes to running a warehousing business, such as leveraging technology to streamline operations and maximise efficiency. And the following we mentioned are just some of the top challenges that you will face running your own warehouse. You might run into others like inaccurate purchase orders, overlapping/redundant processes, and needing to diversify your products. If you find yourself struggling to get your warehousing business off the ground, it may be worth consulting a specialised external provider who can help you identify areas for improvement and set you up for success and growth. 

If you are looking for help deciding if you should outsource your warehouse operations, The Lead Enquiry would love to hear from you. We are a reliable outsourcing marketplace that can connect you to our first-class BPO provider partners to ensure great logistics and warehousing support that can help your company fly. Contact us today.



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