Save Money by Warehousing Your Own Bulk Olive Oil

Store your Own Olive Oil

Buying oil in larger order quantities will reduce both the cost of the oil and the freight. What’s a larger quantity? For this discussion, we’ll look at orders of 6-20 pallets.

Before looking at any savings, you’ll first need to determine if receiving larger orders is feasible for your warehouse. You’ll need to know that you have the space to store these pallets once they deliver. With your warehouse/operations team, figure out the maximum number of pallets you could store at one time, and remember that they can be stacked on top of each other, sometimes 2-3 high. Figuring out how much storage space you have available can be a key factor in reducing your costs.

Here’s Why

Work you buy 6+ pallets, you are often pushed into a lower price bracket for oil and your shipment becomes what’s known as a “volume shipment” in the freight world. Freight carriers charge less per pallet for orders of 4-6 pallets or more, and costs continue to decrease as you move towards a full truckload.

How to Decide

Work with your Operations and Production teams to answer the questions below and see how much storage space you have available.

• Do you have space limitations? 
• What is the maximum number of pallets that you can hold at one time? Could you hold 20?
• Do you have space to install an oil storage tank inside or outside?
• What do you do with the packaging when you’re done?
• Do you have limited or expensive space for disposal?
• Are you building a new facility or moving in the next 5 years? Talk about what would be ideal in that next location.