Storage Strategies When Exporting For Your Business

Contrary to what one might expect, exporting has been a practice that has its origins in the Stone Age (seemingly having started alongside communication). The origin of long-range export lies in the trade between the Sumerian and Harappan civilizations. Exports have evolved and expanded greatly. According to WTO, from 1950 till today, world trade volume has seen a 4500 percent increase.

With the trade growth came the challenges of storage. Today, an export business cannot thrive without well-defined and clear storage strategies. If you export for your business, it is necessary for you to come up with storage strategies that suit the objectives and requirements of your business. Here are some general storage-related strategies to keep in mind, however, specifics will vary depending on the particular needs of your business:

Budgeting Strategy

When it comes to storage for your company's export goods, having a  budget-related strategy is imperative. You shouldn’t acquire storage space without creating a storage budget or without taking the budget into consideration. Additionally, you shouldn't compromise on the safety and security of the items to be stored because of cost considerations. Find the balance with the aid of a sound budget plan.

Set a reasonable storage budget. It may be that due to the sheer volume of business, your storage requirements may necessitate a business loan. It would be beneficial to learn what is an unsecured business loan. You won’t need a collateral and you can repay it over a fixed period.

Warehousing Strategy

The storage facility you'll use will be the focal point of one of your most important strategies. You will need to consider factors like volume of trade, the capacity of the warehouse, its location, suitability to the goods you export, the storage budget, transportation route, and other facilities. Due consideration of these factors will help ensure that goods are stored right, available on time, and never lost in logistics. It will help in saving a considerable amount of time and money. Selecting a warehouse will be a simple decision once you have narrowed down the list of features that align with your requirements. Choose one that best meets your criteria.

Strategy for Managing the Inventory

Simply acquiring a suitable warehouse won’t solve all your storage problems. You need to efficiently manage the inventory in the warehouse. To do so, you need a strategy as well. Whenever the goods are required they should be available; there must never be a stock shortage. On the other side, Stocking up excessively at the warehouse may result in an unnecessary increase in expenses. Perishability and obsolescence are risks associated with excessive stock holding. To prevent any inventory-related storage issues, utilize technology and set up reliable inventory management systems.

Storage Space Organization Strategy

To maximize the space available in your warehouse, it needs to be organized systematically.

And again, developing a strategy will make future processes simpler. Whenever the goods are needed, it should be simple and easy to access them. The organization of the storage space should be such that it prevents product damage or improper handling. You need to select a rack and shelving system that is suitable for the needs of your business. Proper product labeling will aid in swiftly and easily locating the needed items. All necessary product-related information should be printed on labels that are attached to the product's boxes or containers.

Strategy for the Safety and Security of the Goods
 

You will need to take appropriate steps for the safety and security of the products in the warehouse. Develop a strategy that will guide your steps. The packaging of the goods should guarantee their safety while being handled, stored, and transported to and from the warehouse. The establishment of appropriate security protocols is the next step. If the warehouse does not have surveillance systems in place, you may need to install them. Digital surveillance systems will serve as a deterrent even to internal as well as external theft, and with advanced features, may also be able to send out alarms in cases of fire, floods, and other natural disasters. In addition to the security professionals employed by the warehouse, you may need to hire more security personnel. An effective safety and security strategy will reduce the possibility of loss, damage, or theft of the products during storage.

Insurance Strategy

The management of risks is the main focus of this strategy. People are tempted to neglect or procrastinate on this one because it does not seem to make an immediate and visible difference to the goods, business, or storage. However, it can be a huge cause of regret if someone leaves it out until it is too late and the damage is done. An insurance strategy will ensure that you don’t have any such regrets later. 

You need to first check the extent of insurance coverage that is included in the agreement with the warehouse. Review the conditions and exclusions of this insurance policy. You might have to fill in the coverage gaps with other suitable insurance alternatives. Consult a company that offers insurance and specializes in this type of coverage. The inventory in the warehouse should be properly recorded and documented as part of your insurance strategy. If and when necessary, you can back up insurance claims with sufficient proof.

Final Words

Exports give your business a competitive edge and smoothen out your business cycles (including seasonal changes). If you produce the goods, exports will allow you to fully utilize the production capacity. Keep in mind that trade barriers are being done away with, and trade volume is growing worldwide. On one hand, this means that the competition in your domestic market is growing (due to the foreign competitors). On the other hand, it also means that you cannot choose to ignore the market and potential consumers in other countries. Increasing your exports might help your business flourish. With effective storage strategies, you will be able to manage your exports efficiently. Creating and effectuating smart storage strategies will have long-lasting advantages for your business exports.