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Why Virtual Workforce & Warehousing Is a Smart Small Business Choice

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The expenses associated with operating a small business can be overwhelming - and potentially detrimental to the company’s bottom line.Using virtual solutions may lower your human resources and overhead costs.Plus, you can depend on a reliable staff to get the job done right - without the hassle or frustration of traditional employee management.

Human Capital Costs Money

Not only are loyal and enthusiastic employees hard to find, they’re difficult to retain and (sometimes) manage.Costly, too.If your company hires an employee at an annual salary of $35,000, it will actually cost your business more than $46,000 in compensation, taxes, benefits, work space, tech (equipment and software), and more. Did we mention that it’s estimated that one employee uses about $200 a year in office supplies?

And those are just some of the direct costs associated with employing someone on an annual basis.This doesn’t take into account additional expenses associated with recruitment and hiring, or separation, if the employee should resign or be terminated.Consider the lost revenues while a new employee on-boarding, and not as productive at the outset.And if their performance is generally lacking? Yes, there’s lost revenue there, too.

All these costs add up to a lot of additional administration and management time (and expense), as well as frustration.

An employee hired at an annual salary of $35,000, will cost the employer at least $46,247 or more when all associated costs are considered.
Description Actual Cost
Annual base compensation $35,000
Payroll Taxes $4,7351
Workers Compensation $4071
Benefits (basic HMO) $2,7001
Paid time off (2 weeks) $1,3502
Workspace $2,0003
Technology $1,7404
Office Supplies $200
Training & Admin $1,350
Other $1,500
Total $46,247
1 Source – ADP payroll
2 Based on two weeks of vacation\personal days.
3 MIT “How much does an employee cost?” article published in the Boston Business Journal. $2,000 represents the minimum cost.
4 Technology is based on a modern mix of equipment and software. Everything has been converted to monthly costs – computer, phone, internet, email and SaaS (software as service – Quickbooks user, Salesforce.com, etc.).

Workplace Woes

Whether you rent or buy, office space is costly.And if your business must maintain an inventory, that’s another expense incurred: warehousing costs. In fact, to maintain and staff a 1,500 square foot warehouse, expect operating costs to exceed $65,000 per year.Housing your business - whether office,warehouse, or both - requires expenses not just for the lease, but for utilities, taxes insurance, equipment, staffing and more. This overhead bites into you profit.

What if there was a better solution, that offers you the cost-effective, dependable staff and warehouse services you want, leaving more money in yourcoffers? There is a better option for small business - or businesses of any size: virtual workforce and warehouse solutions.
Description Actual Cost
Lease $7,5001
Utilities, Taxes, Insurance $3,7501
Fork Lift & Equipment $9,0001
Staffing (1 FTE or 2 PTE) $42,3072
Technology $2,400
Supplies $2,400
Total $67,357
1 Based on lease of 1,500 square foot warehouse with lease rate of $5 per square foot, $2.50 per square foot for utilities, taxes and electricity and insurance, $750 per month for minimally equipped warehouse (small fork lift, hand trucks racking, etc.).
2 Based on ASD FTE calculation for $15 per hour employee less workspace.
Virtual Workforce
Imagine an experienced staff that reports to work on-time, is highly productive during work hours, and doesn’t require the additional expense of benefits, payroll taxes, tech, and more.Even better, you don’t have to spend time supervising them.With a Virtual Workforce, like that offered by ASD, you have an experienced team that manages administrative tasks, customer support, and project management, to name just a few items on the list.And with customized solution suites for small businesses ranging from $1,500 to $3,000 per month, you can keep your productivity up - and your costs down.

Virtual Warehousing
For businesses that maintain inventory, warehouse space is a necessity.But at the costs mentioned previously, could be operationally prohibitive for many companies.With Virtual Warehousing, though, businesses can secure the equivalent of that 1,500 square foot warehouse - and the staff to receive, pick, pack, and ship - for about $2,500 per month.Use the money you save to grow your business.

Dare to Compare
Let’s look at the costs a small business can expect for a full-time, administrative employee and that 1,500 square foot warehouse.If that business were to manage this independently, the business owners would be looking at an annual cost of $113, 604.However, with customized Virtual Workforce and/or Virtual Warehousing solutions, like those offered by ASD, the same objectives can be achieved for $48,000 to $66,000 per year - that’s a cost savings of 42% to 58%.

In addition, this business would enjoy benefits including:
  • $0 capital expense for equipment (technology and warehousing)
  • Flexible warehouse capacity, on-demand
  • Customized, flexible business and warehousing services
  • Expertly managed, experienced administrative and warehouse teams
  • Service staff available where and when they’re needed
  • Lower risk and liability
  • No long-term commitment with ASD
  • See a cost savings in as little as 30 days
  • More time to focus on business development
To learn more about ASD’s Virtual Workforce & Warehouse Solutions, contact info@ASDWW.com, call 1-888-639-5685, or click here to contact us directly. 
Supreme Vinegar Selects ASD for Inventory Management & Fulfillment
08 Aug, 2019
Vinegar lover Reggie Smith founded his company, Supreme Vinegar to bring nearly-lost, old world vinegar flavors back to the marketplace. Each batch of uniquely-flavored vinegars - including date, pineapple, raspberry, and even watermelon - is created using a combination of traditional cooking methods and modern chemistry, which results in a superior quality product. For years, Reggie created these vinegars in his own kitchen, and stored them in his home. As the popularity of his product grew, so did his inventory. He needed a bigger space to store the vinegars, and assistance in fulfilling the orders he received. He turned to Fulfillment by Amazon (FBA) to prepare, pick, pack, and ship his product.
04 Jun, 2019
ASD’s President and General Manager, Phil Lanctot , talks about the convenience and benefits of choosing ASD to assist your business with asset recovery, re-deployment, recycling, and lease returns. Q: Phil, which types of companies use ASD’s asset management services, such as Virtual Warehouse & Distribution, Service Bench, and Service Anywhere? A: Large organizations have Asset Management systems. Typically, it’s the physical resources - knowledgeable staff and facilities - that they’re lacking. Assets tend to pile up because these companies don’t generally hire full-time staff to handle the logistics of physically handling used IT equipment. This is equipment should be re-deployed, or returned to a leasing company. Other assets must have the data cleared and disposed of. So they’re also paying to store equipment not in use, which is costly and puts their data at risk. Every office - every business - has a pile of IT assets they’re reluctant to throw away. And the staff is too busy to figure out what to do with it. That’s where ASD comes in. Q. How does it work when a client is ready for ASD to handle an equipment return? A. Our team can be onsite with the client to pack the equipment securely for transport. Then we ship the units to the ASD depot. Of course, we provide tracking reports to our clients, so they have a record of the equipment that was recovered and shipped to our storage facility. Q. Once equipment is received by ASD, what happens? A. Once we receive the units at ASD, it’s triaged in one of three ways. If the equipment has reached the end of its lease, the ASD team expertly wipes the data from the machine and returns the equipment to the lessor. In this industry, previously used equipment is sometimes redeployed to new users, while it still contains sensitive information that can be accessed with relative ease. In fact, this scenario was a catalyst for a major healthcare provider to call upon ASD to handle disposals, re-deployments, and lease returns of its multi-function printers (MFPs), as health information privacy is of utmost importance. If the equipment is still under lease, and requires storage until it’s re-deployed, ASD’s staff once again wipes the data for security reasons. They refurbish it to client specifications, making it plug-and-play ready for the next user. The item is then placed in the client’s online “storefront,” where managers can review equipment inventory and select the item for re-deployment when they need it. In the meantime, it’s safely stored at ASD’s facilities. Finally, older, unusable equipment requires disposal. It needs to be recycled properly, in an environmentally-friendly manner. ASD’s team disposes of electronics in accordance with R2 Guidelines, which is the gold standard for recycling this type of equipment. ASD recovers, re-deploys, recycles, or returns equipment like (but not limited to): computers multi-function printers phones tablets computer carts medical devices (such as scales or blood pressure equipment)
ASD Business Center
16 Dec, 2017
Devote more time and energy to your growing business, with the convenience of on-site services you need for successful daily operations. At ASD’s Business Center, you’ll find a comfortable, professional space in which to work, services that support your goals and growth, and a community of small business owners with whom you can connect and share ideas and insights. For ASD small business customers seeking the workspace they need to take their next business steps, ASD’s Business Center is your solution.
14 Dec, 2016
In the 2016 State of Small Business Report,* small business owners cite five top operational challenges. If even one of these challenges applies to you, you’re probably seeking solutions right now to help you effectively, efficiently, and affordably continue to operate your business.
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