When deciding to start warehousing operations, companies generally consider a lot of factors. For example, they might think about whether their company needs flexibility to scale in or out and how much expertise is required for the job. But what if there was an even better option? Warehousing offers innovative and strategic answers for businesses’ requirement- it’s different from private storage because it can be designed to suit any business need!
Public warehousing has its own benefits, but it also offers features that are not often found in private warehouses.
What is Public Warehousing?
A third-party warehouse, also known as a public warehouse or 3PL facility is commercial inventory space owned by a third-party business, and rented to other companies for storage and distribution. Third party warehouses are comparable to private warehoused because of the expertise in warehousing; however, under private ownership/rental it requires more time/effort on behalf of the company.
Benefits Offered by Public Warehousing
Low Investment:
Private warehousing comes with a bigger costs than public warehousing; due to the fact they require a huge preliminary funding to pay all operational expenses, such as procuring, maintaining, and building the system, infrastructure and personnel. Further, private warehouses will also incur tax related expenses.
Also public warehousing offers all the vital machines, equipments and infrastructure needed, this allows you to save on the capital costs.
When you employ public warehousing, your business needs are handled by domain experts who recognize the complexities of logistics, inventory management, distribution, and other required variables. Third party warehousing could be a huge benefit ofr start-ups and SMEs who don’t have the capital, inventory and experience to build their private warehousing operations..
Expertise and Experience:
You can not only choose the warehouse you want, but also the staff. The people who work there are specialists in their domain and know all about compliances for warehousing operations. This will increase your confidence and give you accountability over your business’s warehousing needs.
Flexibility:
If you’re running out of space in your current warehouse, it’s a good idea to purchase and sell more. But what if you need to scale up or down? Public warehousing will come in handy when that time comes.
Value Added Services:
Third party warehousing offers many value added services that otherwise may not be available to you with your own warehousing operations. A warehouse service provider like ProConnect Integrated Logistics offers 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
Third party warehousing or public warehouses have many advantages, but not every private warehouse is worse off. Private or owned warehouses also offer a range of advantages for businesses. For example, if your company has high product volume and movement storage requirements, you might choose to invest in an owned warehouse than one that’s shared with other companies-and more so the longer it takes for goods to move through said facility (public). It offers operational control over how things are done as well as where and when any given business can work from (private).
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 are also evaluating the option of public warehouse 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
We have the experience, expertise and infrastructure to cater to any business with warehousing operations. We offer technology integrated systems and software that provide you with inventory movement reports as well as visibility into market trends. Our priority is meeting your needs by providing services in 650,000 sq ft of warehouse space in freezones and on mainland UAE & KSA for all different kinds of industries.
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.
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