Why is the rent of self-operated logistics warehouse more expensive than outsourcing to a third-party logistics warehouse?

At present, most sellers are still struggling whether to build their own warehousing logistics or outsource. If they build their own warehousing and logistics, how can they solve all kinds of troubles such as capital, personnel recruitment and site selection? Seeing that many brothers and sisters in the electric business are tortured by warehouse logistics problems, it may be a good choice to change the habit of doing all the work and outsource the warehouse.

In fact, many brand businesses have outsourced their warehousing and logistics business, such as Xtep, outsourcing their warehousing and logistics business to a third party, and the management procedures are all completed by the third party company, as long as a staff member is appointed every month to track and summarize this part of warehousing operations in time. Red Star Hongxing Erke also entrusted the warehousing and distribution links in its e-commerce business to a third party for comprehensive warehousing and distribution management.

I calculated an account. "According to the company's logistics business cost130,000 yuan last year, if all outsourcing is adopted, it can save nearly 2.5 million yuan, which can reduce the expenses including warehousing and personnel management by nearly 19%."

However, some other e-commerce companies choose to build their own warehousing and logistics systems by building warehouses and buying equipment, but they are faced with problems such as warehouse location and land purchase, recruitment, ERP upgrade and running-in, and huge waste of idle equipment. The reason is mostly because e-commerce does not know enough about logistics warehousing outsourcing companies, including their business models, operational processes and other business capabilities, as well as concerns about information security risks.

Therefore, the storage cost of self-operated logistics is too high.