Outsourcing warehousing to a third-party logistics (3PL) provider is highly cost-effective. Inventory storage demands significant space, which ranks among the top overhead expenses for businesses, just after staffing. By utilizing a third-party for storage, businesses can leverage economies of scale that are typically inaccessible on their own premises. This approach not only reduces costs associated with maintaining warehouse space but also enables efficient management of inventory levels without the burden of space constraints.

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