UK Pallet Storage Company – Should I Outsource My Storage?

Efficient logistics and storage solutions are more important than ever in global business. In the UK with its bustling e-commerce and strategic position in global trade, having warehouse storage efficiency is paramount. Choosing the right UK pallet storage company is critical, to ensure you are receiving complete bespoke and tailored flexibility with your warehouse storage needs.

In this blog post, we will explore what you should be looking for when choosing a UK pallet storage company. We will shed light on what their significance is within the supply chain, the range of value added services that can be offered and how geographical location can influence the price you pay for pallet storage. Whether you’re a new start up business or a multi-national organisation, understanding the dynamics of warehouse pallet storage in the UK can help you streamline, enhance and optimise your logistics supply chain.

A UK pallet storage company specialises in offering storage solutions for goods transported and stored on pallets. Pallets, typically made of wood, plastic or metal, are a standard in the warehousing and logistics industry, for the efficient handling and storage of goods. These companies provide a critical service in the supply chain, accommodating businesses of various size that need additional space to store their products and inventory.

Storage companies will be equipped with large warehouses, designed to safely and systematically store palletised goods. They will offer a range of services that go beyond just storage. Services such as inventory management, where they will keep track of stock levels and ensure goods are easily accessible for distribution. In addition, some companies offer value added services, such as pick and pack services, container devanning, order consolidation and cross docking services.

Warehouse storage companies play a strategic role in the supply chain. They will be typically located in accessible areas, close to major transport networks, ports, airports or rail networks. This means palletised deliveries can be quickly and efficiently handled and distributed from the warehouse to their final delivery point. This means businesses can expect to improve and optimise their supply chains, as well as gain cost savings within their overall logistics operations.

When using a pallet storage company, numerous advantages can be presented to your business, in terms of logistics, efficiency and cost effectiveness. Some of these key benefits include:

Optimised Space Utilisation: Pallet storage companies, provide ample space, allowing businesses to store large quantities of goods without the need for investing in their own warehouse facility. This is particularly beneficial for businesses with fluctuating inventory levels, or those lacking sufficient storage space at their own warehouse premises.

Cost Efficiency: Outsourcing storage to a specialised company can be more cost effective than maintaining your own warehouse facility. It eliminates the overhead costs associated with the management of the property, maintenance and staffing. Businesses will only pay for the storage space they use, which can be particularly advantageous during off-peak seasons or other quieter times of the year.

Improved Inventory Management: A storage company will often employ advanced inventory management systems, also known as a warehouse management system or WMS. Having these systems in place and offered by a warehousing company, means that goods can be tracked into and out of the warehouse. Your stock can be managed and rotated effectively. Some customers may be storing products, where expiry dates must be tracked. Therefore a warehousing company that can book, track and monitor stock on a FIFO basis (First In First Out) – meaning the oldest stock is what is picked and distributed first.

Enhanced Flexibility: Pallet storage companies offer solutions for scaling your business. This means that you can increase or decrease your pallet storage space, adapting to any busier or quieter periods of the year. Your business will therefore only pay for the storage space it is occupying.

Access To Value Added Services: Most pallet storage companies provide value added services, such as pick and pack, UK parcel and pallet deliveries and overall logistics support. Having access to these services means your business can benefit from these operations and centralise your logistics with a single provider.

Strategic Location: Typically a warehouse storage company will be well placed to transport and motorway links. This means a customer can benefit from more efficient delivery times to their customers. With a warehouse having a strategic location, could bring benefits to your business, such as cost savings on transport and more favourable transit times, meaning your clients receive their goods sooner.

Security And Safety: A pallet storage company will invest heavily in security measures and safety protocols, to protect the goods they store. This will include CCTV, alarms, secure access, surveillance and fire safety measures.

Expertise And Experience: When you partner with a warehouse storage company, your business will benefit from the expertise of logistics personnel employed by the company. This expertise can be invaluable in optimising the supply chain management and overcoming any logistical challenges.

UK Pallet Storage Company | FPF Warehousing Ltd.

When it comes to outsourcing pallet storage several factors will determine whether it will cost your business more money in the long run. Generally in most cases, outsourcing can be more cost effective and here is why:

Initial Investment Savings: When setting up an in house storage facility, this involves significant upfront investment. This includes the cost of acquiring or leasing a warehouse, infrastructure setup, purchasing equipment such as forklifts, pallet trucks and warehouse racking. In addition security measures, fire safety and staffing costs, are just some of the costs you would face setting up your own warehouse.

Variable Vs Fixed Costs: By outsourcing transforms fixed costs (such as owning or leasing a warehouse) into variable costs. You will pay for what you use, which can be scaled up or down based on your specific needs. This flexibility can be particularly cost effective for your business, especially where seasonal fluctuations in inventory levels will play a part in your operation.

Operational Efficiency: Pallet storage companies often operate with a high level of efficiency due to their specialising and scale. This efficiency can mean lower costs for storage per unit, which may be hard to achieve in an “in house” warehouse setup.

Staffing And Training Costs: Operating an in house warehouse requires the hiring and training of warehouse personnel. This can be costly and time consuming. Outsourcing to a warehouse company with skilled personnel eliminates these costs and the challenges associated with workforce management.

Maintenance And Overhead Costs: Maintaining a warehouse involves ongoing costs such as utilities, maintenance, insurance and security. These costs are absorbed by the storage company when you outsource, potentially offering significant savings.

Risk Mitigation: Outsourced storage facilities often have robust risk management strategies, including insurance coverage. This can be more cost effective than managing these risks in house.

Economies Of Scale: Storage companies can offer more competitive pricing due to economies of scale. Their larger operations typically mean lower “per unit” costs for storage and related logistical services.

It’s important to note that cost effectiveness of outsourcing also depends on the specific needs and circumstances of your business. For example. if you require constant, immediate access to your inventory, or if your inventory is extremely large and stable throughout the year – in house storage might be more economical. Whilst the perception may be that outsourcing is more expensive, for many businesses, the opposite is true. It’s advisable to conduct a thorough cost benefit analysis, considering both direct and indirect costs. You can then calculate how economically viable outsourcing or “in house” storage is for your business.

Outsourcing pallet storage to a UK warehousing company involves various costs, which can vary depending on the company, services required and volume of pallets being stored. Understanding these costs is crucial to be able to make an informed decision.

We have outlined some key expenses to consider:

Storage Fees: The most obvious cost is the fee you’ll be paying for the storage of your pallets. This is usually calculated based on the amount of space your pallets occupy (per pallet space) and the duration of storage. Rates can vary widely, depending on the location of the storage warehouse, its facilities and the specific services provided. In addition the volume of pallets you will be storing can also affect the overall storage fee.

Handling Charges: There will often be handling charges for the goods entering and leaving the warehouse. This will cover the loading and unloading of pallets, as well as moving them in and out of the storage space. Some charges will charge a flat fee per pallet, others may charge on an hourly rate or per transaction.

Inventory Management Fees: If you purchase inventory management services from the warehouse, such as inventory reporting, stock control, order handling etc. there will be additional charges. These services are crucial for some businesses, such as e-commerce companies, which will streamline operations, but come at a cost.

Value Added Services: Most warehouse storage company will offer a range of value added services. Services such as pick and pack, labelling, repacking, devanning containers and product assembly. All of these services are usually charged separately and would not form part of your storage agreement. They can also vary in price, depending on how complex the operation is.

Minimum Storage Periods: Some warehouse storage companies will require a minimum storage period, or have a minimum billing amount. This can affect costs, especially for businesses with short term storage needs.

Insurance: Whilst a storage facility will have their own insurance, you may pay extra for additional coverage, to ensure your goods are fully insured against risks, like theft, damage or natural disasters.

Access Fee: If you will require frequent access to your stored goods, there may be fees associated with this. Some companies charge for access outside of standard operating hours or for access that exceeds a certain frequency.

Transport Costs: Whilst not a direct cost of storage services, consider the cost of transporting your goods to and from the storage facility. The location of the warehouse can significantly impact these costs.

Contract Termination Fees: Be aware of any costs associated with terminating the storage contract early. Some companies impose penalties or require notice periods.

It is important to get a detailed breakdown of all potential costs and understand the billing structure, before entering into an agreement with a storage company. Comparing quotes from difference providers can help you find the most cost effective solution for your business.

The geographical location of a UK pallet storage company can have a significant impact on the storage fees you’ll pay. This is due to a variety of factors which are each influenced by the facility’s location:

Commercial Property Costs: One of the primary factors that will affect the price of warehouse storage is the property values in an area. Warehouses which are located in or near to major cities, especially areas with high commercial property prices, will usually charge more for storage. This is due to the higher cost of owning or leasing business premises in the area.

Access And Transport Links: Warehouse storage facilities located near to key transport links, such as major motorway networks, ports or airports often command higher storage fees. Their proximity to these networks means that transport of goods is more convenient, efficient and therefore providing value to the services offered by the company.

Supply And Demand: In areas where demand is high for storage space, but there is limited supply, means that prices will tend to be higher. But this also works in reverse, whereby areas where there is a greater number storage facilities or lower demand for such services, can mean prices are more competitive.

Local Economic Factors: Storage costs can be influenced by the economic environment of a particular region. Areas where there is a thriving business environment and higher living costs, might see higher storage charges.

Operational Costs: The cost of running a warehouse operation, with things such as labour, utilities and taxes, can vary from one region to another. These costs to a business, will influence the rate a warehousing company can charge for storage.

Market Competition: Similar to Supply and Demand, areas where there are a large amount of storage facilities, can mean that the extra competition can drive prices down. That said, where there are limited storage companies, you may find prices are higher due to less competition.

Specialised Storage Requirements: Some companies may offer specialist warehouse storage services, such as temperature controlled facilities, which can be a lot more expensive to operate. Specialist warehouse operations will tend to have less competition, therefore meaning prices for warehouse storage will tend to be higher.

Logistics And Distribution Costs: If your business relies on efficient distribution services across the UK, the location of the warehouse storage facility will become crucial. A centrally located warehouse may have higher storage fees, but overall you would likely be able to reduce your overall logistics charges.

As you can see the geographical location of a warehouse pallet storage facility is a key factor when determining the fees you’ll pay. It is important to balance storage charges with the other benefits offered by the location, such as convenience, accessibility and the potential to reduce overall logistics expenses. When choosing a storage company, make sure you consider not just the storage fees, but also how the facility aligns with the supply chain of your business.

When considering the outsourcing your pallet storage needs, it’s essential you consider all factors discussed in this blog post. From understanding what a UK pallet storage company offers, to evaluating the impact of geographical location on storage fees, each aspect plays a crucial role in making an informed decision that aligns with your business objectives.

It’s worth exploring reputable storage providers like FPF Warehousing Limited. At FPF Warehousing, we understand the intricacies of pallet storage and the unique challenges businesses face in managing their inventory. Our facilities are strategically located to optimise your logistics, reduce transport charges, and ensure easy accessibility to major transport networks.

We pride ourselves on offering a range of services tailored to meet the specific needs of our clients. Whether it’s flexible storage solutions, advanced inventory management, or additional value added services, FPF Warehousing is equipped to provide a comprehensive and cost effective solution for your pallet storage requirements.

With a focus on customer satisfaction, competitive pricing, and operational excellence, FPF Warehousing stands as a strong candidate for your storage needs. We invite you to consider us as your partner in streamlining your storage and logistics operations, confident in our ability to contribute positively to the growth and efficiency of your business.

Please call us on 01256 672727 or contact us via our website to learn more about our business and how we can help you.