Outsourcing has become a fundamental piece for the sector and the fashion industry. Whether large or small companies, subcontracting is helping many brands to develop their strategy. Thanks to the outsourcing of material in warehouses, the distribution is more effective. For many fashion companies it means avoiding a headache.
Imagine that a brand enters into new business or becomes internationalized; or let us think that the volume of production increases. The brand will need to expand the space dedicated to storing their clothes. Think of a company that has its offices in the center of a city where the rent or purchase of commercial spaces is very high. Having warehouses on the outskirts of the city or in industrial areas will help them as they will reduce the costs of owning a store or warehouse in which to store the products.
These warehouses will be integrated into the company’s logistics strategy. Having all the production located under one roof in a specific geographical area, the transport service will work more smoothly achieving greater efficiency in receptions and material shipping. A single point of contact will also be helpful for customer service.
It is true that if the production is not very high, the fashion company may have under control their clothes in the same offices where the other departments are. Think, for example, of a group of entrepreneurs or a startup that launches into the market with a very small series of garments and to sell in a very specific geographical area; they will not need to outsource in the first few steps of their journey. But, by experience, outsourcing in this sense is being increasingly adopted by all kinds of brands related to the fashion world.
The companies that have warehouses and give their spaces for brands to store their products and from there distribute them have great experience. Therefore, there is no need to fear outsourcing in this regard. In addition, the brand will not have to take care of employee hiring expenses since they will be part of the storage company.