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5 Advantages of a Shared Warehouse Space

5 Advantages of a Shared Warehouse Space

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:

  • Cost - By sharing warehousing space, costs are shared by all clients, which can potentially reduce your expenses.  Your company only pays for the space you need.
  • Shared resources -  In a shared warehouse (or multi-client) environment, resources are typically shared between the tenants of the building.  This includes labor content, material handling equipment,  racking, material handling equipment and IT solutions (i.e. warehouse management system.  These shared resources can offer a controlled cost fulfillment solution.
  • 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. 
  • 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. 
  • 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.