{"id":5124,"date":"2014-08-27T11:55:42","date_gmt":"2014-08-27T11:55:42","guid":{"rendered":"http:\/\/www.whichwarehouse.com\/blog\/?p=5124"},"modified":"2014-09-08T10:55:48","modified_gmt":"2014-09-08T10:55:48","slug":"fulfilment-outsourcing-in-house","status":"publish","type":"post","link":"https:\/\/www.whichwarehouse.com\/blog\/news\/fulfilment-outsourcing-in-house\/","title":{"rendered":"Fulfilment outsourcing versus in-house"},"content":{"rendered":"

\n\tShould you outsource your fulfilment or deal with it in-house?\"outsource<\/a>
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\n\tOne of the most frequently asked questions I hear on a daily basis is “will it be cheaper for me to outsource to a 3PL or carry out fulfilment in-house”?   So I thought we would take a look and weigh up the different options available in the current market to distributors in the UK as it is apparent this is a big consideration for some businesses. \n<\/p>\n

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\n\tRenting warehouse space
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\n\tThe first thing to factor is whether renting<\/a> an industrial property that could accommodate your operation from storage through to distribution is an option.  Keeping in mind that the majority of leases start at a minimum 12 months and therefore you would need to be completely confident that your business will be able to perform within those first 12 months to achieve the required capital to cover all costs as well as the all-essential profit.\n<\/p>\n

\n\tFactoring in a rental charge of, say, £7-£10 psf (dependent on size & location) together with all other overheads such as business rates, service charges, utilities, salaries etc you are already looking at an expense well in excess of £150,000 per annum and that’s without all other costs associated with running your own warehouse and office facility.  You will also need to consider the expense of distribution via either your own transport division or an experienced freight forwarder\/courier.\n<\/p>\n

\n\tOutsourcing your fulfilment
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\n\tThere are many reasons why you may not want to outsource your fulfilment requirements and some that are worth deliberating are;\n<\/p>\n