Public Warehousing as a Resource

Sometimes we think about public warehouses as COSTCO where many vendors can sell their goods in bulk. Typically, the quality is very good yet the price is much more affordable than retail outlets.

The other public warehouse is the third party warehouse that handles all the risk on your behalf. Risk like:

• Technological changes that require regular updates or modifications of software
• Workers’ compensations claims and OSHA requirements are no longer your problem
• Short-term agreement to accommodate seasonal changes
• Space accommodated based on client requirement
• The advantage of specialized expertise in the industry
• Discounted rates based on volume activity
• The warehouse company is required to handle the document requirements for shipping
  

As you can see, there are many advantages of using a public warehouse, but consider the downfalls.

• Unless you work with a warehouse facility that is willing to accommodate your needs, you may be required to work within the parameters established by the public warehouse
• The warehouse may have limited resources to accommodate space requirements
• If the warehouse facility closes on short notice because of economic limitations, you will be forced to find alternative storage and distribution methods on short notice
  

Convenient for individuals and companies that need additional storage on a temporary or long-term base, there are pros and cons to both public and private warehouses. The ideal situation is based on your product needs and company requirements.


Source
Private vs. Public Warehousing
Seaboardwarehouse.comAllbusiness.com, WAREHOUSE & DISTRIBUTION - Markets Reveals Strength in an Economic Downturn
Vendorseek.com
Vendorguru.com