What is Shared Warehousing, and Why is it Preferable to Dedicated Warehousing


A shared warehouse, as the name suggests, is a multi-client or public warehouse that commonly works like a campus, where more than one company or business utilize the same distribution facility and share resources. When we talk about this kind of scenario, we mean tenants sharing labor, material handling equipment, capital equipment expenditures, and IT infrastructure costs. 

This goes without saying that the shared economy model has the potential to bring significant alterations to industries by facilitating the integration of a once-fragmented market and creating enhanced value for its customers. It should be noted that the logistics market of India is also embarked on a journey to absorb this model and all of its benefits via shared transportation and warehousing space services. 

In shared warehousing, a company collaborates with other businesses to operate its operations out of a single distribution hub. By utilizing shared warehouse space, personnel, technologies, resources, and equipment, the business is able to better control cost per unit and reduce the risk of having a high fixed cost base and overhead costs.

Due to increased drop densities and a superior cost-to-serve ratio, shared warehouse space enables businesses to carry out the order and distribution aggregation in multiple sites rather than just one. This decreases the number of miles that must be traveled. In order to get your hands on the top shared warehousing services, you can get in touch with Anyspaze. 


Benefits of Shared Warehousing


Access to Particular Resources 

Not all businesses are common, and the same goes for goods, as there are some goods that are required to be stored in a particular fashion. You can understand this by a simple example if your products require a specific temperature or environment that differs from others, then you will require some specific resources. Shared warehouses are built in such a way that they meet every specific requirement of all the clients. 

Enhanced Security

One of the major benefits of shared warehousing is the fact that they invest a lot in ensuring that the security of your warehouse is top-notch. The services they offer implement several layers of security, cameras, a high-end IT infrastructure, and security guards around the clock. In some cases, you will find that shared warehouses offer even better security than dedicated warehouses. 

Reduced Pricing 

Another item that you will share with a shared warehouse is the costs. All costs associated with the warehouse in issue will be split among all clients who use it. In the end, this lowers your spending. You will ultimately only be charged for the space your products take up. You must contact Anyspaze for the best shared warehousing facility for your business. 

Knowledge of Industry

A company that is a third-party logistics service provider with shared warehousing is backed by employees that have specific industry knowledge of inventory controls, order profiles, shipping details, and warehouse efficiencies related to your industry. This goes without saying that knowledge can surely prove to be highly valuable in building efficiencies and synergies within your supply chain.  


In order to scale your business, you must note that a shared warehouse can be just the perfect solution. A shared warehouse will offer you a flexible environment so that you can grow in the space. What;’s more? A multi-client warehouse provides you with the ability to enhance your footprint as the business evolves. 

Summing Up

Well, we are now aware of the benefits of a shared environment. What’s more to it? You must note that it is comparatively easier to have your logistics costs parallel your revenue stream. Conclusively, you must lay an emphasis on the fact that shared warehousing services are typically designed in such a way that they serve as the best option for companies, the space and service requirements of which tend to fluctuate a lot. 

Another thing that goes to the advantage column of shared warehousing is the fact that it typically includes a shorter contractural commitment than dedicated, and it generally has terms of 1-3 years along with cancellation clauses in case your distribution requires alteration. 

What are you waiting for? Get in touch with Anyspaze today to allow the experts to work with you in providing you with the most optimized warehousing solutions.

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