India has about 63.4 million small and medium-sized businesses (SMBs), which play an important role in the Indian economy. SMBs contribute around 6.11% to the manufacturing GDP and 24.63% to the service sector GDP. SMBs are also key job creators, employing about 120 million people across different industries. In the past six years, job creation in this sector has surged, growing by 110% each year. Small businesses need warehousing services because they often don’t have enough budget to spend on infrastructure, technology, or experienced teams. Using a warehouse for small businesses helps them save costs and manage inventory without the high expenses of setting up their own facilities.
Outsourcing warehouse services for small businesses has many benefits, such as their products being under 24/7 surveillance, inventory management, and rapid order fulfillment. The business owner doesn’t have to keep their products in multiple locations, like the office or at home. When a small business owner keeps his products in an efficient and well-managed warehouse, it can lead to fast order fulfillment and enhance customer satisfaction.
A small business should partner with a reliable 3PL warehouse service provider like AAJ SCM. Its modern warehouses are equipped with advanced technologies, such as warehouse and inventory management systems, for real-time tracking and stock visibility. Warehouse partners allow small businesses to reduce warehouse costs and focus on core activities like product development and the development of new marketing strategies.
Warehouse Services For Small Businesses
Warehousing is an integral part of supply chain management. The warehouse company receives goods from the suppliers and stores them in their specific storage area. When a customer places an order, the warehouse team picks the product, does packaging, and hands it over to the shipping company so that it can be delivered to the customer on time.
Warehousing refers to a wide range of activities, such as receiving products, storing them, tracking inventory, packing and labeling orders and then shipping products to customers.
Warehouse services significantly differ for small and large businesses. We are underlining them below.
- A small business requires small warehouse storage space, and SMBs have less SKUs to manage. But if we talk about a large business, then they will store products in bulk in a warehouse and require more storage space inside the warehouse.
- A small business owner wants cost-effective warehousing options like shared warehouses. Here, they can share the warehouse space with other enterprises. However, a large business always looks for large warehouses to store products in bulk quantities. They even have a contract warehouse to store the products for the long term. Sometimes, large businesses even build their own warehouse and manage their logistics.
- Small businesses use simple methods or manually track inventories, but large companies depend on advanced technologies like automation and robots.
Specific Needs Of Small Businesses For Warehouse And Logistics
- Cost is the primary concern for small business owners. They usually look for affordable warehousing operations.
- Most small businesses do not have enough staff to pick products, package them properly, and deliver them to customers at the right time. Hence, Small Businesses need warehouse services that will do all such tasks for them at affordable costs.
- A small business will require simple technology to track its inventory. It will help the owner determine the products available in the fulfillment warehouse and the products sold to the customer.
Why Do Small Businesses Need Warehouse Services?
Small businesses require warehouse services for the following reasons.
1. Cost
Building a warehouse, managing its staff, and buying equipment like forklifts for moving products inside the warehouse requires an investment of a certain amount of money. It may be difficult for a small business owner to invest much in all these things. Hence, outsourcing the third party warehouse for small businesses is a reliable and cost-effective solution. It not only helps reduce the cost of a business but also enhances customer experience and helps business growth.
2. Space Constraints
A small business owner usually does not have many goods or products. But still, it needs some storage space to store its goods. Storing them in offices or homes makes the place untidy and disorganized. Keeping products in the warehouse avoids cluttering in both homes and offices.
3. Inventory Management
Inventory management is even essential for small business owners. It enables a business owner to know the stock availability of products, which helps with overstock or stock-out issues.
4. Faster Shipping
They have good logistics partners that provide fast delivery services. Warehouses and logistics are usually loaded in major cities like Mumbai, Delhi and Bangalore. These cities are well connected by rail, road, and airport, so faster shipping of goods and products is possible, which can lead to enhanced customer satisfaction.
Key Features to Look For In A Warehouse Service For SMBs
1. Location
Location matters a lot when choosing a warehouse service for a small business.
Choose a warehouse that is close to your customer’s locations. Warehouse that is well connected to rail, road, or airport. These things help reduce small businesses’ transportation costs. Domestic shipping happens at a faster rate, and thus, the products can reach the customer’s doorstep on time.
2. Scalability
A small business may initially have less goods and products. However, the business sales can grow, and the number of products can expand in the future. The warehouse you choose must have a scalable warehousing solution, which means it can store more products when your business grows.
3. Technology Integration
Manually managing inventory can involve many errors and lead to wrong decisions. Your chosen warehouse for small business must be integrated with advanced technology, such as a WMS and TMS, to track products in real-time and manage stock.
4. Security And Compliance
The SMBs warehouse you choose must have robust security measures, such as CCTV surveillance and restricted access. It should also comply with regulatory requirements for food products and pharmaceuticals.
How Does AAJ Supply Chain Management Warehouses Support Small Businesses?
AAJ SCM is one of the top warehousing companies in India. We provide scalable warehousing facilities, which allow small businesses to rent space as per their requirements. Again, when a business expands, it gives more space to store its goods and products.
AAJ Supply Chain Management’s warehouses are integrated with advanced technology, such as a WMS and TMS, to track inventories and orders in real time. We have the capability to integrate our WMS with 60+ marketplaces. AAJ Provides a dedicated team to help businesses integrate their store or websites into B2B marketplaces. With over 19 years of experience in warehouse logistics, we have managed the supply chains of more than 300 top brands.
Benefits Of Using AAJ SCM For Warehouse Services
1. Affordable Warehousing Solutions
AAJ Supply Chain Management provides Pay-per-use warehouse services to small businesses. These allow small business owners to pay only for the spaces and 3PL services they need. AAJ SCM is ideal for businesses with fluctuating demand for products.
2. Fairness and Transparency
At AAJ SCM, we prioritize fairness and transparency with no hidden charges—our clients pay only for what they use. This commitment to open communication and ethical practices assures trust and clarity at every stage of the supply chain, making us a reliable 3PL partner for long-term success.
3. Integrated With Modern Technology
AAJ’s warehouses are integrated with Modern WMS & TMS technology. AAJ has a dedicated software team that continuously improves our technology to make it easier for clients to access real-time information about their inventory and deliveries. These updates ensure a smooth, user-friendly experience that keeps our clients informed at every step.
We offer seamless integration with leading Order Management Systems (OMS) such as EasyEcom, Unicommerce, and Vinculum. OMS allows our clients to efficiently manage their inventory, orders, and deliveries all in one place. This practice streamlines their supply chain operations for remarkable accuracy and control.
4. Scalability Services
AAJ Logistics Company provides scalable warehousing solutions. With over 800,000 sq. ft. of storage space and a team of 1,000+ experienced employees, AAJ SCM is equipped to manage scalable warehousing operations for growing businesses. Our professional employees ensure smooth and efficient handling of growing inventories. AAJ provides a dedicated expert team when needed to support your business at every stage of growth.
We have warehouses in Delhi NCR, Bangalore, Mumbai, Chennai, and many more major cities in India. This nationwide presence allows us to fully support businesses looking to expand into new state markets, providing seamless logistics solutions wherever they grow.
5. Reduces Overheads
Building a warehouse and storing products inside it involves a lot of money, which can be difficult for a small business owner. In such cases, you can opt for the warehouses for small businesses provided by AAJ SCM. Outsourcing warehousing operations will avoid investing in land, hiring staff, or buying equipment like forklifts to manage logistics operations.
Challenges Of Warehouse Services For Small Businesses And How AAJ SCM Tackles Them
1. Limited Budget
Small business owners usually have a tight budget. It becomes difficult for them to purchase land, build a warehouse, and then manage staff and purchase equipment for proper product movement inside the warehouse.
In such cases, outsourcing warehousing and transportation is a good idea. Choosing a reliable, efficient, and affordable 3PL Company is quite important for a small business owner.
AAJ Supply Management charges a small business owner for the warehouse space and services that they require, thus reducing the costs of a small business.
2. Logistics Coordination
A small business owner struggles to coordinate with various shipping and logistics vendors. It can adversely affect the delivery time of products to the customer’s doorstep.
AAJ SCM provides various logistics services, including receiving goods, packing, and shipping as early as possible. Hence, the products arrive at the customer’s doorstep on time. This approach streamlines the logistics of a small business.
3. Inventory Management
Small business owners usually adopt manual methods for inventory management, which can lead to errors, inaccuracies, overstocking, and out-of-stock issues.
AAJ Supply Chain Company has modern warehouses equipped with advanced inventory management systems. These systems reduce manual errors.
The business owner can also monitor product availability in the warehouse and avoid overstock and out-of-stock problems.
How To Choose The Right Warehouse Service Provider For Your Small Business?
You should consider some key criteria while choosing the right warehouse service for Small business.
- Choose a warehouse company that can scale as your business grows with time.
- The warehouse should be equipped with advanced technologies like a warehouse management system.
- Select a warehouse partner for SMBs with numerous years of experience and a good reputation in the supply chain management field.
- The warehouse provider should provide good customer service. Poor communication can lead to customer dissatisfaction.
- Ensure that the warehouse company complies with industry and safety standards.
Importance Of Evaluating Costs, Location, And Service Offerings
- Choose a warehouse provider that provides transparent costs related to its services. If you are a small business owner, then avoid making long-term contracts with any warehousing Company.
- The warehouse location is also quite important. Choose a warehouse that is closer to your target markets or has good connectivity.
- Ensure that the warehouse service provider provides services like packaging, labeling, shipping, and value-added services. Some warehousing companies even offer B2B logistics services to streamline the business’s supply chain.
Red Flags
- Stay away from providers who use outdated technology for managing warehouses and inventories.
- Stay away from warehouse providers who charge extra fees for providing basic services.
- If the warehouse for small businesses does not provide good security measures, then avoid it.
- If the provider does not respond properly or lacks communication, then avoid it.
Conclusion
Choosing a good and reliable warehouse service for small business has numerous benefits for a small business owner. These include cost savings, better inventory management, and fast shipping. AAJ Supply Chain Management has been a trusted warehousing Company for small businesses for many years. It provides warehouse scalability solutions.
Its warehouses are advanced technology-enabled and customizable services like packaging and labeling. Outsourcing warehouse operations to AAJ supply chain management can efficiently manage inventory and enhance customer satisfaction.
So, are you looking to take your business to the next level? If so, contact AAJ Supply Management today.
AAJ Supply Chain Management
