Warehouse storage vs keeping inventory at my facility?

Your warehouse is packed and you're weighing outside storage against keeping everything in-house. With Illinois's network of interstates like I-55 and I-80, moving inventory between facilities adds transportation costs. You need to know if the math works out.

Storage costs vary widely across Illinois. Your facility might cost $8-15 per square foot annually while warehouse space runs $4-8 per square foot. The break-even point depends on your current capacity utilization and seasonal demand spikes.

Outside storage makes sense when your facility costs exceed rental rates or when you need overflow capacity during peak seasons. Factor in transportation costs between locations, insurance adjustments, and staff time managing split inventory. Most businesses see benefits when moving 20-30% of slower-moving stock.

Start by calculating your true facility cost per square foot including utilities and labor. Get quotes from local warehouses that offer inventory management and direct shipping to customers. Gateway Distribution can help you stage trailers at your facility to bridge the gap while you evaluate longer-term storage options.

Once properly managed, split inventory gives you flexibility during busy periods without the fixed cost of expanding your facility. You keep fast-moving items close and store seasonal or slower inventory off-site.

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