>
>
>
> I'm a firm believer in using commercial storage rather than doing your own
> thing. I got taught long ago that you don't outsource to save money, you
> outsource to add value. For me, the main value in an outsourced setup is
> that growth becomes simply a cash flow, cost of doing buisiness exercise.
Well, I must start this off with a hearty =)
Glenn IS CORRECT that under the proper circumstances, outsourcing your
storage can be a FINE decision to make... providing there are ample service
providers to choose from that meet your organization's needs for storage and
the price is acceptable.
I noticed Toby works for a municipality, so this may mean they have a
number of records that have lengthy storage requirements and may also be
subject to extensive privacy concerns. Additionally, some of their records
may be one of a kind with no backup that serve the needs of the public, so
it will be important to take that possible risk into consideration when
evaluating potential service providers and identifying what level of
protection (and liability coverage) is available for the information assets
being stored.
If you double your business, and assuming this results in a doubling of
> your storage requirements, then running your own facility is a nightmare.
> You have to find more space or do a cull to make more space. If it's new
> space, you have to fit it out, staff and service it, etc etc. Culling or
> expanding are very hard to do quickly at short notice. But with a
> commercial setup, you ring the storage company and tell them you'll be
> sending a lot more stuff their way, and you expect them to maintain
> contracted service levels. Problem solved. If you've doubled your business
> you can probably afford the storage costs, and you may even qualify for a
> discount.
Again, if this IS an municipality, it should be rather easy to project
growth, based on past history. And having spent time in Anchorage in the
past, I'd assume the only business to frequently double there would be the
income of the "Great Alaskan Bush Company".
As far as increased volume being sent to a commercial service provider
being a simple "problem solved" situation, you need to ensure that the
provider is able to handle your increased volume in the same facility where
your records are currently being stored, if that's an issue for you. A
common practice is to divide volumes between multiple properties being
managed by the same firm, or even to sub-contract storage to a third party
at times. If this is a concern for you, make sure you ask these questions
when you plan to experience a major shift in volume.
I'm also in agreement with Glenn that it's no problem as long as you can
"expect them to maintain contracted service levels"... but this would be a
GOOD TIME to review both the service levels in the contract and the term of
the contract to ensure you won't be re-negotiating shortly AFTER a planned
major increase in volume. You're at a MUCH better advantage to negotiate
PRIOR to increasing volume, and it's a good opportunity to discuss increased
service levels or elimination of some "pesky fees" that may be built into
the contract.
Oh, and most commercial storage companies (at least here in Australia)
> provide storage which effortlessly meets the standards for temp, humidity,
> security, fire protection etc, much better than either of my two
> warehouses (even if one of them has its front wall heritage-listed).
Sigh.... well, I wish I could say the same for the firms in the US. There
are many firms that DO subscribe to very high standards of maintaining their
facilities and comply with the requirements in NFPA232 and/or CFR 36, Part
1228, Subpart K, but unfortunately there are many more that don't. Worse
yet, many limit their liability to $1 or $2 per box in the event the boxes
are involved in a loss or otherwise damaged while in their custody. This is
why it would be important for anyone, especially a municipality, to perform
a site inspection and consider having a fire engineer or risk manager review
the facility before entering into an agreement. Naturally, the contract
should also be reviewed by an attorney, or someone who is responsible for
the financial obligations of the organization.
As a manager, I'm after anything that simplifies my life. Additional cash
> as a cost of doing business I can easily manage. Diverting resources to
> find out how the feral cats got into the unstaffed warehouse 250 km away
> is a pain in the veritable. Trying to find or make additional space when
> both warehouses are chock-a-block is impossible.
This is too true. It's always easier to throw cash at the problem =)
Go commercial.
But go with a plan, and go carefully.
Larry
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