Warehousing operations have different costs depending on the situation. If a business is considering starting warehousing, it will need to consider these factors like flexibility to scale and expertise when deciding between private or public warehouses. Public warehouse storage has one significant advantage: They can provide great value if they are used properly.
What is Public Warehousing?
Third-party warehouses are often utilized by companies that need storage and distribution services. Unlike private warehouse, third-party warehouses offer greater expertise in warehousing, inventory management and distribution. Private warehousing requires a company to buy or lease the space themselves, hire operations personnel with knowledge of how to operate their own warehouse equipment and more.
As a result, public warehouses offer many benefits over private ones.
The Benefits of Public Warehousing
Low Investment:
Private warehouses come with increased costs, due to the fact that they require a huge upfront investment to pay for all operational expenses. This includes procuring, maintaining, and building out an entire system as well as property and personnel. Private warehouses will also incur tax-related charges in their unique situation.
Public warehousing offers all the necessary equipment and infrastructure, which will save you on capital costs.
When you employ public warehousing, your business needs are handled by domain experts who recognize the complexities of logistics and other variables. Third party warehouses could be a huge benefit for startups and SMEs who can’t afford to build their private warehouse operations.
Expertise and Experience:
When you opt for public warehousing, not only will your choice be their facility but also their staff who are specialists in the domain and aware of all compliances. This adds to your confidence and at the same time gives you the ability to hold them accountable for your warehouse operations.
Flexibility:
When you need to grow your business, a private warehouse will not be enough. In such cases, you must buy and sell space or setup. But public warehousing lets you expand anytime there is an increase in demand or when the company expands and downsize as needed for downsizing.
Value Added Services:
Third-party warehousing offers a lot of great added services that can be hard to find with your own warehouse. A company like ProConnect Integrated Logistics provides additional services like –
- Dedicated account manager or a single point of contact to manage all your needs
- Kitting, assembling, installation services
- Cross-docking operations
- Multi-modal or inter-modal transportation services
- Shipping and clearance services
- System integrated capabilities like WMS and TMS
- Timely stock reports
While third party and public warehousing have many advantages, it is not like private warehousing doesn’t have much to offer. Owned warehouses provide you with an entire warehouse for your business- unlike public or shared spaces where you share the space with other businesses! Private warehouses offer more operational control and flexibility in command of your working hours. If you are looking for a decent sized warehouse that can handle high volumes of product movement, but are also prepared to invest capital into the purchase price, then own facilities might be a good choice for your company’s bottom line.
However, many SMEs and even some of the large scale businesses prefer outsourcing their warehousing, fulfillment, and distribution to a third-party logistics warehouse like ProConnect Integrated Logistics. If you’re also evaluating the option of public warehouses for your business then one of our previous articles can guide you further on top things to consider when choosing a warehouse partner
Warehousing with ProConnect Integrated Logistics
ProConnect Integrated Logistics has the experience, expertise and infrastructure to cater to warehousing operations of all industries. Our technology integrated systems and software give you inventory and stock movement reports, and visibility into the market trends. We understand your need and take your requirements seriously. We have operations in 650,000+ sq.ft warehouse space in freezones and mainland in UAE and KSA, and cater to multiple industries with their needs.
If you are looking for a 3PL that can understand your business and provide solutions that match your requirement, then reach out to us with the details and we’d be happy to offer you the best of our services. Not just warehousing, we also offer shipping, custom clearance, consolidation and de-consolidation, fulfillment and distribution services.
APP DOWNLOAD