Warehouse storage vs keeping inventory at my facility?

Your warehouse in Tennessee is running out of room. You're weighing the costs of renting outside storage space against expanding your current facility. The math gets tricky when you factor in transportation, inventory management, and the complexity of splitting your stock between two locations.

Running out of warehouse space happens when your business grows faster than your real estate. You're paying high per-square-foot costs at your current facility, or you need overflow capacity during busy seasons. Moving some inventory to outside storage can free up your prime space for fast-moving products.

Outside warehouse storage typically costs $4-8 per square foot annually in Tennessee, compared to $12-20 for owning facility space when you factor in taxes, utilities, and maintenance. You'll also pay transportation costs to move products between locations. The break-even point depends on how often you need to access the stored inventory.

Calculate your total costs including transportation between your facility and the storage location. Look for warehouses along I-40, I-75, or I-81 that offer inventory tracking and can ship directly to customers. Gateway Distribution provides warehouse storage at our Cincinnati hub with inventory management, so you can bypass the back-and-forth trucking costs for customer orders.

Once you move slow-moving inventory to outside storage, your main facility becomes more efficient. You'll have room for fast-moving products near your shipping dock. Your team spends less time searching through overflow inventory stacked in aisles.

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