Benefits of Shared Warehouse Facility during Peak Season

 


Shared Warehouse Facility in Bhiwandi space can meet all of your needs, such as storing your products, minimising your spending, and providing a safe storage area for your products. If you're looking for a warehouse to fulfil your supply chain needs, you might be concerned about your product sharing space with both these product lines in the same building. However, the benefits of sharing a space far outweigh the drawbacks.

The shared economy model used among AirBnB and Ola/ Uber has led to substantial changes to their particular fields by assimilating a previously fragmented economy by creating greater value for their customers. With a $160 billion market size, India's logistic market is also absorbing this model and its perks via shared logistics activities space services.

A company in shared warehousing shares its operation business with other companies through a single distribution hub. By sharing space, people, devices, assets, and hardware for warehouses and freight-transporting vehicles, the company can better control costs per unit and mitigate the risk of having a large fixed cost base and high overhead expenses. Shared warehouse space also enables companies to consolidate order and distribution in multiple locations rather than just one, resulting in a better cost-to-serve margin and reduced road miles due to higher drop viscosities.

Shared warehousing should not be thought of as a tactical, transactional solution. Developing a more constructive partnerships with your 3PL will help you optimize the service and cost benefits that a shared storage solution can provide.

The following factors should be considered when deciding between shared and dedicated warehousing space:

1.    Operational Scope – A company that is just getting started or has limited operations may profit from pooled warehouse space, whilst a business with complex and large operations may tend to favour designated space.
2.    Customization – Because shared warehouse space allows for limited customization, a company with an intricate operations activity should opt for specialised warehousing.
3.    Economical – Dedicated storage facilities are expensive due to high fixed costs and expenditures, whereas shared warehouses bear the responsibility among myriad businesses operating out of the warehouse. By wanting to share warehousing space, costs are communicated by all clients, lowering your expenses and saving you money on storage. Your company only pays for the space that you require.
4.    Tenure – Shared warehouse spaces typically have shorter contractual tenure and greater flexibility with lock ins because service providers typically find replacements, whereas dedicated factories have longer contractual tenure and lock ins due to higher overhead costs.
5.    Shared resources – Some warehouses provide specialised storage services, such as temperature-controlled and refrigerated space, if required. Under the supervision of experienced, your products will be carefully and correctly stored in the warehouse. Shared transportation functionality is also advantageous to the company, whether achieved by splitting vehicle capacity simultaneously (for example, through ride-sharing) or over time (for example, through truck-sharing). It enables businesses to improve last-mile delivery services by reducing the time it takes to fill vehicles with shipments. Furthermore, it enables businesses to reduce overall operating expenses by lowering transport costs per kilogramme and lowering maintenance and personnel costs because fewer assets are required. 
6.    Broad Industry Knowledge – Employees of a 3PL with shared warehousing have been exposed to a wide range of products. They have niche industry experience and expertise. You will have direct exposure to cutting-edge warehouse and management systems. 3PLs with shared warehousing understand how to properly manage your freight with tools like online reporting and KPIs.
7.    Security – With security guards on duty 24 hours a day, cameras and facility management, as well as WMS and IT infrastructure, your product is in the best hands and under the most stringent security measures.

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