People have been creating a change in consumer culture: from shopping at traditional stores to buying online on e-commerce sites. The number of online orders is increasing, and how should businesses manage their goods to ensure smoothness and best business efficiency?

Each business will have different business strategy as well as specific products, so to choose the most suitable storage format, businesses need to consider factors before making a decision? Please join Thien Nam Building to find out the article information below to choose the most suitable form for your business!

Enterprise rent warehouse

For large-scale business enterprises with a range of activities in many different fields, a large number of goods and a chain of branches scattered everywhere, it can be affirmed that renting a warehouse to store goods is a must. Extremely smart and effective business plan.

Advantages of renting a warehouse

When choosing a warehouse for rent, businesses can easily see the advantages.

  • You will be consulted about the size, size, physical properties of the warehouse…
  • You can also identify traffic routes around the area.
  • Next you will have more time to invest in business development
  • When your business grows fast or some problems arise. You can absolutely find other rental warehouses that are beneficial to your business. Then, moving goods and warehouse costs will be significantly saved.

You will have a variety of warehouse formats to choose from and be more active in your business

Disadvantages of renting a warehouse

However, renting a warehouse also has some limitations:

  • You will have to pay a fee for the rental warehouse, which can increase from year to year.
  • In the extension of the contract you may incur additional value added.
  • When renovating the warehouse, it is also difficult to discuss, ask the warehouse owner for permission.
  • When the warehouse owner does not agree to extend the contract further. At this time, businesses will have to spend money to find warehouses and move.

Businesses operating their own warehouses

The form of self-operating warehouses is suitable for two types of businesses, which are:

  • Large enterprises, willing to spend the budget to own their own warehouse, hire many employees to manage the warehouse and complete the order process.
  • New business, retail seller has not had many orders. All activities of warehouse management, order processing and delivery are not too complicated, so they can be done by themselves.

Advantages when buying warehouse

  • Control: easily control inventory, optimize space, directly monitor products in and out of the warehouse and ensure optimal product preservation
  • Flexibility: you can design, renovate, repair, retrofit business equipment
  • Make good use of human resources
  • You can use it for loans or transactions.

Disadvantages when buying warehouse

Some limitations you will encounter when buying warehouse

  • Cost, trading, repairing, renovating as well as equipping warehouse equipment requires large investment capital.
  • Other money such as taxes and insurance are also difficult problems in the beginning.
  • In some cases, having to sell the property is worth less than it was originally.
  • As an owner, you must be responsible for maintenance when the warehouse deteriorates or requires a change in structure and equipment. Therefore, your time to focus on developing your business is not 100%.

Choose the warehouse model of your business

Based on the business form, business size and development orientation of the business, you can choose to rent a warehouse or operate it yourself to ensure the development and benefits of your business.

Thien Nam Building hopes the above sharing will be useful for your needs. Thien Nam General Warehouse provides warehouse rental services with a central location and the most optimal cost, suitable for:

  • Enterprise
  • Personal online business
  • Households need to rent storage space
Please contact Thien Nam Building immediately for more information!

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