Public and private warehousing are two options for storing goods throughout the shipping process. Both offer a convenient storage solution and a variety of benefits, but which is better for your product, business, and budget? Keep reading to learn more about public vs. private warehousing, then reach out to the team at Amware to find out which is the best solution for your business.
What is Private and Public Warehousing?
Public warehousing facilities are owned and operated by a third party. In this model, pricing is based on the level of service utilized by the customer. Public warehousing facilities are used for short-term or long-term storage, with some locations offering additional services and amenities.
Private warehousing facilities are owned and operated by a company division. Also known as proprietary warehousing, these facilities often require a significant front-end investment for building, facilities management, and regular maintenance.
Benefits of Public vs. Private Warehousing
Now that you know the difference between private and public warehousing, let’s discuss the benefits of each storage facility option.
Benefits of Public Warehousing
Compared to private warehousing, public warehousing facilities are affordable, convenient, and flexible. There are a few reasons public warehousing is an attractive option. For starters, there’s no capital investment required in public warehousing for things like building leasing and taxes, team on boarding and safety training. This means there’s a low startup and usage cost.
Public warehouses require no long-term commitment, which makes it easy for businesses to change to a different warehouse if they don’t like the one they’re using. This also means there are many additional offerings to customers because of high competition in the sector.Some of these include:
- Specialty Storage – Temperature sensitive goods, hazardous materials, and perishable items all require special storage. While not every public warehouse can accommodate, many are certified to do so.
- Rail Siding – Clients utilizing rail or intermodal transport will require a public warehouse near a rail line. The best public warehouses will be situated very near the rail, while others will offer indoor rail line access right at the warehouse itself.
- Packing and Assembly Services – Great public warehouses will offer add-on services to help clients pack, assemble, and often ship their stored goods.
With convenient locations and multiplicity of clients, public warehouses often extend their high volume freight cost savings to their customers. This means public warehousing clients often benefit from freight cost savings. Public warehousing offers storage facilities of all sizes, which makes them perfect for small businesses or those looking to expand. Because of this, there’s a great deal of flexibility for companies whose business ebbs and flows annually or seasonally.
Benefits of Private Warehousing
Private warehousing facilities typically offer abundant benefits to fewer customers, which public warehouses simply can’t offer because of their size and scale. There are a few reasons private warehousing might be a more attractive option.
One of the biggest benefits of private warehousing is the high degree of control for clients. If you want to determine how best to utilize the space on your own, carefully track the internal flow of material or inventory, or keep a team working around the clock, a private warehouse offers unlimited control of the facilities. That unlimited control also means having to cover the cost of design, operation, and maintenance. Depending on the items being stored, the warehouse may also require special certifications and insurances. The high cost of private warehousing keeps it out of reach for most businesses.
How to Choose the Right Warehousing Facility
If you’re not sure which warehousing facility is the right option for your business, reach out to the professionals at your third-party logistics provider. Amware works with business owners and shipping managers to find the right warehousing solution. As a public warehouse provider, Amware offers clients flexible space, specialty storage, indoor rail siding, and packing and assembly services. Contact our team now to learn more, or download our free whitepaper, “The Secret Costs of Warehousing,” below.