Searching for a solution where you can store your products, minimize spend and meet your storage requirements? A shared warehouse space can fit all of your requirements.
If you're searching for a warehouse to complete your supply chain needs, you may have some reservations about your product sharing space with other products in the same building. However, the advantages of sharing a space far exceed the disadvantages.
Here are the five advantages of a shared warehouse space:
1. Cost
Shared warehousing allows for cost-sharing among multiple clients, potentially reducing your expenses. You only pay for the space your company requires, making it a more budget-friendly solution.
See how ODW's optimized transportation solution helped Plaskolite save $2M annually.
2. Shared resources
In a multi-client warehouse setting, resources like labor, material handling equipment, racking, and IT solutions (e.g., warehouse management systems) are shared among tenants. This collaborative approach ensures a controlled and cost-effective fulfillment solution.
3. Industry knowledge
It's not uncommon for a logistics provider to focus on particular industries. A 3PL with shared warehousing has employees with specific industry knowledge on order profiles, inventory controls, warehouse efficiencies, and shipping details related to your industry. This knowledge can prove to be valuable in building synergies and efficiencies within your supply chain.
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4. Flexibility
A shared warehouse can be the perfect solution to scale your business. If you are a middle-market company or fast-growth focused business a shared environment will provide you with a flexible warehouse environment to "grow into the space". For example, say you have a need for 80,000 sq ft today but have a growth plan of 10-20% over the next 24 months. A muli-client warehouse gives you the ability to increase your footprint as your business evolves.
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5. Terms
Shared warehousing contract terms can be designed with shorter duration (1-3 years) as compared to a dedicated facility. The shorter contract terms can provide you with the flexibility to evolve your operation and scale your supply chain.
Overall, shared warehouse spaces offer a range of advantages, from cost savings and resource optimization to industry expertise and adaptability, making them a compelling option for companies seeking an efficient and dynamic supply chain solution. Get in touch with our warehousing experts at ODW Logistics to learn more.