The benefits of letting product in a European warehouse

The benefits of letting product in a European warehouse

Letting product in a European warehouse and especially in Netherland has many benefits that allow businesses to grow and make the difference over their competitors:

Performance Improvement:

The main activity of a logistics warehouse is to create a platform for storing and then transporting the various products available. It allows the companies that use them to always have enough stock available to meet the demand of their customers.

Economies of scale and reduced shipping costs:

European warehouse will allow you to benefit from lower shipping rates, as you will be able to manage large volumes of orders in the same amount of time. Centralization also allows you to make savings thanks to optimized management: your inventories will be simpler and faster, as will the transit of goods, loading, etc.

The security of the merchandise:

Merchandise deposited in a private bonded warehouse benefits from a better storage service, which prevents the customer from damaging or stealing its merchandise due to congestion in the ODEP stores.

Risk Reduction:

Netherland Warehouse comes with all kinds of risks, such as deteriorating inventory or possible injury to one of your employees. Subcontracting this step allows you to relieve yourself of potential risks.

Cost Reduction:

Hiring a professional will usually save you money in terms of labor. Indeed, companies offering this type of service share their warehouses among all their customers, which allows them to achieve economies of scale and thus offer prices that are often much lower than they would be if the storage were kept in-house. Outsourcing therefore allows you to avoid hiring full-time employees, whose task will be to manage warehouses that will not always require a constant presence.

Faster shipping:

Today, customers expect fast shipping. By spreading the inventory over several locations, you can speed up shipping times for your customers. Keep this in mind when choosing European warehouse locations. The more strategic you are in choosing your warehouses, the better you can meet the needs of your local customers.

If you have 100% of your stock in a single warehouse in Netherland, you’ll have a long way to go to ship to your customers in Portugal. But if you split your stock 50/50 between the Netherland and Portugal warehouses, you can reach every customer within a day.

In conclusion, we can summarize the advantages of the bonded warehouse for the licensee or carrier as follows:

  • Improving services to customers
  • Thwarting competition
  • Creating synergy with the customs administration
  • Improving competitiveness
  • Building customer loyalty
  • Present a more complete offer to customers
  • Guaranteeing the safety of goods to customers

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