February 20th 2024 11:00:00 AM
When Warehouse Rents Soar, Can Small Business Inventory Software Keep Costs Down?
August 6th 2019 15:00:00 PM
The 1989 film “Field of Dreams” includes the famous misquoted line, “If you build it, he will come.” (It’s often misquoted as “If you build it, they will come.”) The same logic seems to apply to the current boom in warehouse construction. Companies are being forced to get creative to ensure they have the warehouse space they need for today and as they grow. The right small business inventory software can be a key component in controlling costs now and moving forward.
Are you pressed for time and want to move directly to the stage where you learn about the advantages of Scanco’s Sage WMS for your business? Contact us online or call (330) 645-9959 to arrange your personal appointment with a Scanco Solutions Expert.
Demand for Warehouse Space Outpacing New Construction
According to CBRE, the international commercial real estate services and investment firm, more than 255 million square feet of warehouse space is currently under construction. A total of 70.2 percent (179.01 million square feet) of this new construction is speculative.
The company has also stated that, based on data released by CBRE Econometric Advisors to 2015, demand for warehouse space has outpaced new construction by 169 million square feet. Rents during the same period jumped by 19.2 percent.
Where are these warehouses being built? Large cities are seeing the highest levels of warehouse development. According to CBRE, the markets that are most likely to see high levels of demand include Inland Empire, Las Vegas, Los Angeles, New York, and Seattle. The combination of low warehouse vacancy rates combined with port access, and consumer demand for online shopping makes these locations very well positioned. In these top five markets, the aggregate rent growth is 8.7 percent per year.
Lack of Warehouse Space a Challenge
Given that warehouse space is in such high demand and rents for available space (especially in major centers) is increasing at several times the annual inflation rate, what’s a business owner to do? There are some options:
- Look for Warehouse Space Outside of Major Centers
Since demand and rents will be higher in major urban areas, look for space available in cities located close to these markets. While there may be some extra expenses involved in shipping and receiving orders to a location that is slightly outside of the major city, it may be worthwhile if the payoff is more warehouse space and/or lower rent.
- Make the Most Efficient Use of Existing Space
It can be less expensive to stay in the existing warehouse than to move to a new one. Before considering taking this step (with all the logistic stresses that go along with it), make sure that the existing warehouse space is being used as efficiently as possible.
- Use Small Business Inventory Software to Control Costs
In business, keeping on top of available inventory is a crucial component of keeping the entire operation running smoothly. Whether the company is involved in e-commerce with orders being shipped to the consumer or supplying parts to manufacturers, Scanco’s mobile apps and automation solutions can help increase efficiency and lower the risk of human errors.
Consider our mobility app for Sage 100/100. Do away with using pen and paper for inventory counts. The app is compatible with iOS and Android devices and runs on WiFI or cellular, making physical counts quick (up to 75 percent faster), easy and accurate.
Out of stock items lead to lost sales and lost revenue. With the mobility app, current inventory levels are always available to warehouse and purchasing staff, as well as the sales team. Inventory can be “frozen” for large or “rush” orders, when necessary.
As the business grows and expands, upgrade the software to a more robust version to reflect the company’s new level of needs. Five user licenses are included at no charge with the Sage Mobility Module, and additional user licenses are available.
Don’t let a warehouse space crunch stop you from getting the most out of your location when Scanco has the small business inventory software solutions you need. Contact us online or call (330) 645-9959 to arrange an appointment with a Scanco Solutions Expert today.