STORAGE STORAGE AS STRATEGY
Companies can reduce costs by using strategic offsite storage to minimise expensive office space. With proper asset audits and digital inventory systems, storage becomes a proactive financial tool rather than just a holding area. Rachel Houghton, MD at Business Moves Group explains the benefits of this strategy.
It is no secret that businesses are navigating a tough financial climate, and 84% of CFOs expect operating costs to rise. The business rates increase coming in April, the most significant rise in a decade, has added to the pressure across sectors; industrial and logistics properties face a 28.6% rise in rateable values, and offices face a 6% increase nationally.
With budgets squeezed and change looming, businesses must reassess fixed costs and real estate strategies. Rates can’t be negotiated mid-cycle, so every unused square foot carries unnecessary liability. Rather than simply reacting to an unavoidable cost increase with service or contract cuts, businesses should assess where costs can be reduced through space optimisation.
"Industrial and logistics properties face a 28.6% rise in rateable values, and offices face a 6% increase nationally."
Strategic storage with
modern solutions One relatively simple way to make better use of space is with a storage strategy. You’d be amazed at the number of businesses that store furniture and equipment on site, despite the fact that office space costs four to seven times more per square metre than warehouse storage. Reasons can vary from a lack of a proper furniture management strategy to no one person having responsibility for furniture.
Organisations shouldn’t consider offsite storage as a quick, ‘out of sight, out of mind’ solution to surplus furniture, seasonal stock, or archived documents, but as a cost-effective enabler as part of a wider strategy.
Digital asset registers Without proper asset registers, items can sit warehoused for months before being disposed of anyway, unnecessarily multiplying costs. Digital inventory platforms offer an accessible database for businesses to retrieve items on
48 | TOMORROW’S FM
demand with full visibility. It’s simply not possible to make strategic decisions without a full overview of all assets, including their age, condition and location.
The more detail, the better. This can include serial numbers, asset numbers, dates of manufacture and even warranties. Capturing such detail enables facilities managers and procurement teams to manage the entire estate and its contents more effectively and efficiently.
Registers can be accessed by authorised individuals within an organisation, so they have full oversight of their items in storage. This is especially useful for large companies with multiple sites. There are numerous times when a site manager might order new items without realising they have a perfectly good item in storage – an asset register solves this immediately.
Key considerations for storage Key considerations include:
• The cost of storage. • The depreciation of asset values. • How long you expect to leave an item in storage.
• The location of the warehouse and ease of having items delivered.
• The cost of a new item if you didn’t keep the old one and need to re-purchase in the future.
While there may be some items that need to be stored for the long term, such as confidential documents, storage should never be a set-and-forget operation. We routinely flag with our clients if an item has been stored for a certain amount of time to help them decide what to do with it.
A proactive response to rising costs As business rates climb this April, organisations face a clear choice in how they respond to inevitable cost increases. Storage, when approached strategically, offers more than a temporary fix. It provides a proactive tool for reducing rateable footprints, managing assets with precision, and creating the flexibility needed to adapt without locking in long-term liabilities.
The businesses that will navigate this financial pressure most effectively are those reassessing every square metre, understanding exactly what they hold and why, and using storage as part of a broader strategy to operate leaner and smarter. In a climate where every cost matters, turning storage from an afterthought into a strategic advantage is an essential step, not just a sensible one.
https://businessmoves.com
twitter.com/TomorrowsFM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
