The Advantages of Multi-Client Warehousing
No two businesses are the same, and where contract warehousing may be the perfect solution for larger, well-established organizations, many smaller companies are looking towards multi-client (shared) warehousing to fulfill their individual requirements. Sharing warehouse space with other customers is a flexible and cost-effective method of storage, and provides a wide range of advantages.
It Offers Greater Flexibility
Generally speaking, multi-client warehousing offers shorter, more flexible contracts than those of a single-user (contract) arrangement. This makes it particularly useful for companies that are either just starting up, have a small clientele base, deal with seasonal products, or have a product where demand fluctuates, with no concrete idea of what their future warehousing requirements are.
For these customers, it is crucial that space can be reduced (or increased) to correspond with their personal business demands; this is where multi-client warehousing comes in, providing a solution to rapidly changing distribution needs, and without committing to a long-term contract. This flexible approach naturally reduces the worry of having to pay for an area you can’t fill, or conversely, not having enough space.
Multi-client warehousing is also the perfect solution for businesses that require several smaller locations, offering multiple distribution points, rather than one large space.
Improves Service and Efficiency
The advantages of handing over your warehousing requirements to a third party are undeniable. Multi-client warehouses are managed by logistic experts, using analytic tools, which maintain a tight control over inventory. This maximizes space management, and reduces costs, with the benefits of both ultimately trickled down to the customer. They are also manned with a staff that is professional, experienced and knowledgeable, making storage one less thing for you to worry about.
One of the biggest advantages in multi-client warehousing is cost. Sharing your space with other businesses means that labour, and operational costs are spread out among all customers, which can result in significant savings. You are also only paying for space you take up, which means there are no huge, expensive warehouses standing half-empty when your business doesn’t require the space.
Multi-client warehousing eliminates the need for companies to hire their own staff to take care of their packing, storage, and distribution needs, which again reduces costs.
There may be times when your business requires additional services, such as specialized tools, equipment or packing services. When this happens within a single-user facility, the costs are naturally borne by the one user; however, with multi-storage facilities, these costs are evenly divided among all customers.
In summary, multi-client warehousing can provide a logical, practical solution to your businesses storage and distribution needs.