How Third-Party Warehousing Can Help Manage Your Working Capital

December 7, 2017

Part of building a successful business is being able to manage your working capital effectively. Many elements go into accomplishing this and range from setting a realistic operating budget to efficient logistics. While your employees may perform optimally in most of these areas, your logistics may depend in some way on a third-party warehousing company. If you select the wrong company to help you with your logistics, it will be a drain on your working capital. On the other hand, when you choose a highly skilled one to assist you, you can manage your working capital at an optimal level, which helps the entire company be more profitable. Read on to discover further information about how third-party warehousing can help you manage your working capital.

Management of Inventory via Computer Software and Complementary Measures

Third-party warehousing companies utilise computer software along with other measures to manage your inventory in an accurate manner. The benefits of this are many, including the fact that the software can show selling trends for the stock to ensure that you have a sufficient supply at all times. Also, since the goods are counted as they enter the warehouse, during inventory and as the exit the warehouse in orders, you always know what and what is not in stock.

Accurate Reporting of Incoming Stock

Another benefit of this type of warehousing is that you receive accurate notification of all incoming stock. By doing so, you know that your salespeople can push the new stock as much as they need to in order to sell it in a timely fashion.

Tracking the Movement of Stock

Since the computer can track the movement of stock, you understand what products are selling fast and which ones are slow movers. This allows you to adjust your order to keep from spending your working capital on more slow-moving stock when you need the merchandise that sells at a faster rate.

Provides Accurate and Timely Order Fulfilment

Logistics also plays a role with working capital by keeping the clients happy with timely and accurate order fulfilment. Both of these services are available from third-party warehousing companies. When the clients are satisfied with how they receive their orders, they keep purchasing your goods, and this increases your profitability and working capital.

To learn further information about how third-party warehousing can help you manage your working capital, contact Challenge Packaging and Warehousing Solutions. You can rely on us as an outsourcing resource for effective storage, inventory, packaging, order fulfilment and other types of options that will all help you serve your clients efficiently and effectively.

Contact Us

Address: Unit 3, 8 Weddel Court Laverton North,
Vic 3026

Telephone: (03) 83609736
Fax: (03) 83609738

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