Is Shared Warehousing The New Normal?


The Recent Studies In The Economic And Financial Arena Have Highlighted A New Trend Of A Shared Economy. The Field And Niche Of Warehousing Which Is More Or Less Very Capital Sensitive Have Also Decided To Go Into The Arena Of A Shared Economy. Most Of The Time Bulk Spaces Of Warehouses Are Unable To Generate The Kind Of Revenue That They Are Supposed To, Which Is Why Offering Warehouses As A Service Becomes More Beneficial If It Works On The Matrix Of Shared Warehousing.

As A Warehouse Owner, One Of The Primary Ways Of Showing Profits Is By Increasing The Storage Capacity Over A Period Of Time. Generally, This Would Mean That A Person Would Need To Invest Large Sums Of Money To Build Or Buy A New Property From Scratch. However, With The Concept Of A Shared Economy In Place Shared Warehouse Space Has Also Become Very Viable.

There Are A Number Of Benefits Of Going To The Shared Warehouse Space Way. For Starters, Since The Beginning, There Has Been A Big Tussle Between Investments And Optimization Of The Warehouse Space That Is Owned. 


Over The Years Warehouse Owners Have Realized That They Need To Come Up With A Better Model Manage Excess Storage Capacity And Come Up With Ways Of Making Profits From All The Dead Space That Otherwise Go To A Complete Waste.


Let Us Take A Closer Look At Some Of The Primary Benefits That One Can Get Out Of Shared Warehousing.

1- One Needs To Pay Only For The Space That They Are Occupying.

2- There Is More Flexibility In Managing Peak Demand Through The Shared Warehouse Inventory Management Systems.

3- We Get Quicker Responses As Per The Changing Supply Chain Needs.

4- Better Scalability Of Business And Profits.

5- The Capacity For Managing The Volume Spike Economically.

If It Is One Thing That The Year 2020 Has Taught Us, It Is The Fact That The Future Is Rather Unpredictable. Most People Will Now Look For Shorter Contractual Terms When Leasing Out Warehousing Space. Hence, Most Of Them Will Look For Co-Sharing Or Shared Warehousing Space So As To Reduce The Costs And Have The Ability To Get Access To A Place That Does Not Have Lock-In Periods.

With 2021 Almost Around The Corner And The Possibility Of More Uncertainty Still Looming, Shared Warehousing Is The Only Beneficial Way Of Making Profits. Rather Than Investing Huge Capitals And Investing In Warehousing Which Means That You Need To Pay For All The Maintenance And Upkeep, Shared Warehousing Will Help You Share The Costs And The Profits Both.

The Future Of Shared Warehousing Is Bright And It Is Most Definitely Going To Be The New Normal In The Years To Come.

Rituraj Pankaj
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