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Adding Value to Your Supply Chain With Public Warehousing

May 19, 2021
5 min read
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What is Public Warehousing?

Adding value to your supply chain with public warehousing must first start by understanding what exactly a public warehouse is. A Public Warehouse offers companies the ability to store their inventory on a short or long-term basis.  For businesses seeking to work with a public warehouse, there are flexible payment options as well as other value-added services which are available.

Private warehousing does not provide the flexibility that most growing businesses prefer or need to remain on a financial path that makes sense. The cost of maintaining a private warehouse can quickly eat away at what are, in many cases, already slim margins.

Supply Chain Value

Use what you need when you need it

Being able to store what you need when you need it offers clients the ability to work within their budget and grow with their public warehousing partner as their business grows. Most public warehouse operators have the potential to expand storage space for a particular customer on-demand. Sometimes, a client’s business will shrink. Whether it’s a lost account or a change to a component in their supply chain,  public warehousing offers the option to reduce storage space as needed.  This flexibility is attractive to businesses worried about burdensome contractual obligations.

Pick and Pack Fulfillment

Pick and pack services are one of the many value-added services that can be a part of a public warehousing agreement.

Pick and pack fulfillment incorporates picking out products that have been sold, packing them, and either adding the shipping labels or just placing them on the truck for delivery.  It is a process that can be costly and time time-consuming to perform on-site. This cost, when analyzed, is ofte better managed by those who are storing the actual merchandise. Companies often store incomplete pieces or unfinished parts in the warehouse. Having the resources available that can help get their products assembled and delivered in a finished state can provide both time and direct supply chain cost savings.

On-Site Staff and Technology

Worried about the cost of employing warehouse staff and implementing the right inventory software to manage inventory effectively?

With the right public warehouse, you will have access to up-to-date software and in-house staff to manage your inventory. Like all other value-added services, this is an add-on that is available for those who require it.

Other Ways Public Warehousing Provides Value

  • Tax advantages (no property tax)
  • No liability for giving up space
  • Unlike private warehousing, there is no initial investment needed to maintain the facility
  • Conservation of capital is greater in public warehousing

If you are ready to explore public warehousing options for your organization, CONTACT Amware today. Amware is a full-service 3PL helping clients manage their transportation logistics services. Click below to learn more about the Amware advantage.

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