Benefits Of Shared Warehousing Space
Shared warehouse space is beneficial for those who are looking for storage space but cannot occupy all the space. For small scale retailers and ecommerce industry shared warehouses are a boon. It can fit all of your requirements such as storing your products, cost effectiveness, and proper storage area for keeping your products. If you are searching for a warehouse on rental to complete your supply chain needs, you may have some reservations about your product sharing space with other products in the same building.
In a supply chain, numerous operations are taking place simultaneously. Hence streamlining these operations and coming up with an organizational system is the need of the hour. Anybody knowing about supply chains might be equally aware of the concept of a warehousing facility acting as a distribution center. To complete your supply chain needs, you need warehousing space. Honestly, a lot of us might have reservations about sharing a warehousing space, but its advantages outweigh its disadvantages.
Speaking of that, here are a few benefits that come with a shared warehousing space for the logistics and supply chains:
- Reduces the overall cost: A single, dedicated warehouse demands you to pay the entire cost. But the cost is reduced to a great extent with shared warehousing as the expense is borne by almost all the partners. You only have to pay for your own space and the labor you use.
- Provides great flexibility in terms of commitment: No matter how good or bad your business is doing; a dedicated warehousing space usually comes with a long-term contract. But a shared warehousing space does not bind one in adamantine chains as it provides great flexibility, sometimes in cases that offer even month-to-month contracts. Again, the agreement can be for a shorter duration (1-3 years) compared to a dedicated single warehousing facility.
- Access to specific storage facilities: Storage facilities differ from one product to another. For instance, there would be commodities requiring a very specific temperature for their sustenance. Often, the shared warehouses are equipped with special facilities that one can access at a special cost for a certain time period.
- No separate investment in securing the facility: With a single dedicated facility, the expense of top-notch security is another headache. It’s a lot more expensive as one cannot afford to compromise on the security aspect. But this is not the case with the shared warehousing as they have already invested in high-end security. With multiple layers of security and advanced technology and infrastructure, there is an end-to-end assurance and visibility. You can be assured of your products being in safe hands.
- Reap the benefits of industry knowledge: With a shared warehousing facility, there comes industry knowledge and experience. 3PL providers know the industry in and out due to their experience of having worked with a dozen of supply chains. Right from moving the products to handling them with care and special attention, they have mastered that art in a way. This knowledge will significantly be passed on to you, benefitting your supply chain methodology in the coming years.
There are a lot of prerogatives that come with shared warehousing space. It is cost-effective, time-saving, and allows the company to focus on its core business with a free mind. It allows the companies to save a hefty amount and also shared warehouses offer flexible leasing terms, which eventually decreases the burden in terms of monetary terms.