SME stock management: when should you outsource storage?

1. Calculate cost per square foot

First, record the office area occupied by stock and the cost, then compare it with the monthly rent, moving, and manpower for retrieval. Prices vary by location and service level; don't just assume external storage is always cheaper.

2. Frequency of stock movement

Decide whether you need regular logistics based on the number of shipments per week.

3. Document archiving

Company documents that need to be retained can be stored centrally, well-sorted and labelled.

4. Use total cost to judge, rather than assuming storage is always cheaper.

Record the office area occupied by goods, relevant rental costs, staff time, and number of deliveries, then compare with the monthly rent, collection/delivery, and operating fees of off-site storage. Different locations, buildings, and services mean storage costs per sq. ft. are not guaranteed to be lower than your office.

If frequent retrieval is required after off-site storage, transport and labour costs may offset rent savings. Conversely, centralising seasonal or low-turnover stock might free up workspace; evaluate based on actual volume and operational processes.

5. What should the inventory list at least record?

Use stable item codes for each product, recording name, specifications, number of boxes, quantity per box, and box number. Do not mix similar packaging or different versions under the same ID, or you'll easily pick the wrong item.

Record dates, personnel, and reasons for every intake, retrieval, or stock adjustment, and periodically check records against physical stock. These are management suggestions and do not imply that general storage plans provide a pre-built system or assume responsibility for goods inventory.

• Item / SKU and version
• Outer box number, quantity of items, and quantity per box
• Estimated next access date
• Intake/output records and contact permissions

6. Confirm the storage intake/output methods that the warehouse can accommodate.

Enquire if they accept intake/output in original boxes, batch retrieval, notice periods, and handover points. If you have fixed restocking days, urgent orders, or third-party logistics visits, confirm feasibility beforehand; you cannot arrange for trucks to arrive at the warehouse without prior notice.

Itemised counting, labelling, repacking, shipping, and returns handling are all separate operational requirements. Only services listed in writing should be included in your process and budget, to avoid interpreting simple storage as a complete logistics outsourcing.

7. Company documents and inventory should be managed separately.

Documents containing client or staff information should be numbered separately from general inventory; outer boxes should only display internal codes to avoid putting sensitive data directly on labels. Keep clear records of access permissions and authorised contacts.

Confirm statutory document retention periods, personal data storage, and disposal requirements with relevant professionals based on document type and current regulations. For food, medicine, battery-containing goods, or other special items, declare their nature and storage requirements first; do not store them as general cargo.