Warehouse storage vs keeping inventory at my facility?

Your warehouse is hitting capacity and you're wondering if outside storage makes financial sense. South Dakota businesses often face this choice during growth spurts or seasonal peaks. The math isn't always obvious when you factor in transportation costs and inventory management complexity.

Running out of warehouse space forces a choice between expanding your facility or renting external storage. Your current space might cost more per square foot than rental options, especially if you're paying premium rates for climate-controlled areas. Peak seasons around harvest time or holiday shipping can push even efficient operations past their limits.

Outside storage typically costs $3-8 per square foot annually in South Dakota, depending on location and features. Factor in transportation costs between facilities, usually $50-150 per trip for local moves. Your total cost includes staff time managing inventory across locations, potential delays in order fulfillment, and any minimum commitments from storage providers.

Calculate your current cost per square foot including utilities, insurance, and staff overhead. Compare that to rental rates plus transportation costs for moving inventory twice. Look for storage facilities that offer inventory tracking and can ship directly to customers, eliminating double-handling. Gateway Distribution provides warehouse space with inventory management at our hub, reducing your coordination burden.

External storage works best when it eliminates bottlenecks in your operation. You maintain control of fast-moving inventory while overflow items stay accessible but off-site. Your facility focuses on core operations instead of cramming products into every corner.

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