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Leasing a Warehouse in Miami or working with a 3PL. Which Option is Best for Your Business

Before you go on the hunt for the perfect warehouse spot or decide to outsource your 3PL fulfillment in Florida, let's go over your options. We want you to know that there's no one-size-fits-all solution here at Stockmatic. Every company is different, and each option has its own pros and cons. So, let's break it down together and figure out what works best for your business. 

  • Renting warehouse space in Miami, Florida.

  • Using a co-warehousing facility in Miami, Florida.

  • Utilizing Overflow Storage or Pallet Storage Warehousing in Miami, Florida

  • Engaging with a 3PL (Third-Party Logistics) company in Florida or utilizing the services of a fulfillment center in Florida.

Leasing a Warehouse Space

In this model, your company assumes the responsibility for the fixed monthly expenses associated with renting a warehouse. Moreover, your company takes charge of all in-house activities, encompassing human ressources, product reception, storage and inventory management, order picking and packing, order fulfillment, and managing returns. It entails a comprehensive and hands-on approach to the entire process.

  • Full control throughout the entire process.

  • Freedom to customize every aspect of logistics to meet the specific needs of your business.

  • You care more about your own business operations compared to most other outsourced companies.

Pros

  • 5 years fixed lease contract

  • Overall costs higher than outsourcing

  • In charge of hiring, managing and motivating your warehouse staff.

Cons

3PL Distribution Center Building
Pick and Pack processes of a 3PL

Pros

  • Complete control over every detail of the warehousing

  • Fulfillment and shipping functions at a fraction of the cost of typical warehouse leasing.

Cons

  • Your business will still have to take on a lease (fixed cost) and manage all the operations

  • The amount of space available for lease is smaller than traditional warehouse leasing.

For those that want the control that comes with managing warehousing operations in Miami but do not have the size and scope of operations to manage a typical lease, co-warehousing is an amazing option. Like co-working spaces, this is a newer option in the warehousing world that started gaining traction around 2020. In the co-warehousing model, an entire warehouse space is subdivided into smaller, locked warehousing spaces that can each be leased separately by different companies. Typically, co-warehousing operations leases range from 200 square feet to 1,500 square feet, with the option to lease multiple areas contiguously. Furthermore, office spaces can typically be rented separately, and each member has full access to loading docks, pallet jacks or forklifts, shipping stations and other equipment.

Using a co-warehousing facility.

Using a 3PL Company or a Fulfillment Center in Florida

3PL companies and fulfillment centers have grown in popularity over the years. They offer a completely outsourced model where they receive, store, and ship your products for you so that you don’t have to manage the process yourself. Every component of warehousing costs become variable, where you only pay for what you use, typically monthly. Keep in mind outsourced 3PL companies in Miami, Florida come with challenges as well, so a free trial can help you see if this is the best solution for you.

Pros

  • You only pay for what you use.

  • You do not have to perform the warehousing and fulfillment services yourself which gives you more time to focus on sales and marketing for your business to grow.

Cons

  • You will not have the control over the operations, nor will you be able to do everything the way you want to.

  • The fulfillment center in Miami will not care as much as you do about your business, and as such there can be quality gaps that you will have to accept to use this strategy.

E-commerce order fulfillment
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