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TOP 4 ADVANTAGES OF PUBLIC WAREHOUSE FOR ENTERPRISES
What is public warehouse Public Warehouse is operation that provides warehousing and related services by third-party logistics company in short/long time period. Related services include packaging, labeling, order management, f...
What is public warehouse
Public Warehouse is operation that provides warehousing and related services by third-party logistics company in short/long time period. Related services include packaging, labeling, order management, fulfillment, transport or other value-added operations etc.
I am going to list out what public warehouse service can bring for enterprises in the intense business environment and let see if they can enhance your operation.
ADVANTAGES
Cashflow and ROI
Enterprises don’t have to purchase or invest their own lands, buildings, WMS (warehouse management system), recruitment and training or any operation expense. ROI (return in investment) and cash are factors that every enterprise must grasp. Enterprises want to maximize profits and minimize the expense at the same time especially for SMEs. The public warehouse service can be an alternative for you to consider. The biggest advantage of using public warehouse service is lower the money cost investment and financial pressure. You can outsource the warehousing operation for short/long terms depends on the need and have options deciding to prolong or cease storage period. It gives enterprises flexibility in cashflow.
Storage pressure
The fluctuation in products demand is frequently occurred for seasonal goods. The demands of products like winter clothing, Lunar New Years products and Easter chocolate are different in a year. You don’t want to own an empty warehouse for a whole summer/winter. Why don’t you outsource your warehouse operation to others in high demand season and saving the rental cost? In additional, due to fixed spacing of private warehouse, you may not able to handle huge amount of inventory in high-sale season if you run your own private warehouse. It really limits your capability to maximize your sales. And again, why don’t you outsource your warehouse operation to public warehouse and maximize your sales performance?
Reduce investment risk
Enterprises can reduce investment risk by outsourcing to public warehouse. Many necessities are required for operation such as machineries, warehouse picker, lift, office equipment, WMS (warehouse management system), fire alarm and safety system. Those are expensive and added-up to a large amount of investment.
In addition, because of the fast pace of technology, equipment and solution can outdated and be diminished in any time and investment risk is relatively high due to the fast-changing technology. To conclude, if you need warehouse operation for your business, you should make a good investment strategy and consider public warehouse service.
Flexibility
Enterprises will face lot of market fluctuation and change throughout the years. We all somehow adjust our business nature and category to adapt the market environment. The need of warehouse space is often unstable and unknown in future. Public Warehouse gives you the flexibility and rooms to adjust. Owning a private warehouse can be a restriction if enterprises change their business model and warehouse space. Let say you are running a trading company and you plan to start a new import-fruit business in coming season. You may not want to invest a bunch of refrigerators just from the beginning of business. In addition, there are on-season and off-season for certain kinds of goods. The demand is different throughout the months. Therefore, outsourcing to public warehouse can be a good alternative.
RESTRICTION
However, you cannot have your cake and eat it. There are still some restrictions you should know and try to overcome.
Customization is crucial for warehousing operation. Public warehouse service usually standardized for supplying mass market need. Hardware and software like shelves, pallets, warehouse picker, barcode scanner, price sticker printer and operation system are already set up for general service. Public warehouse normally is not able to 100% fulfill those needs. Oym Logistics Platform offers OYM-LMSi (Logistics Management System Infinity), which are developed by experienced and IT-specialized, is developed for fulfill varieties of need. Go learn more about it here.
In addition, there are probably conflicts and inconsistency in systems between public warehouse providers and your organization. It causes problems in information flow and communication. They can be a restriction of using public warehouse service.
TAKEAWAY
Before making decision on warehousing operation, you should consider the factors mentioned above. As discussed above, you can learn more about OYM-LMSi and see what it can bring to you for warehouse operation. It can be your game changer. In addition, we do cooperate with lots of public warehouse providers. Please to not hesitate to contact and search in our platform.
