Monday, 5 October 2015

Advantages Of Multi-Client Warehousing

Multi-client warehousing allows different businesses to use a single warehouse where they can share their assets and resources. It can act as a perfect solution for smaller companies that require limited storage space. It allows sharing of the costs of space, labor and equipment, thus reducing the overall expenses of the company. It provides a wide range of options without investing in staff or equipment. It enables you to fulfill your individual requirements.

Given below are various advantages of multi-client warehousing:

  • Flexibility –Multi client-warehousing offers more flexibility to smaller companies who have varying storage needs. It is beneficial for those companies who deal with companies who have fluctuating demands or seasonal products. It does not offer a long term contract which makes it beneficial for the companies who have short term goals.
  • Reduce costs-. If you are sharing your space with another business, this means that the  expenses including the labor and operational cost are also divided among all the clients. You need not pay for any extra space but only for the one which is used for your business. The additional cost required for services such as specialized tools, equipment or packing services is not borne by single user, but distributed between clients.  
  • Improves service and efficiency: Logistics experts use analytic tools to manage the warehouses. Professional, experienced and knowledgeable staff helps in managing the inventory efficiently. The improved service also enables to have a quick access to markets.
  • Decreased risk and burden: In a single end user there are more risks involved related to insurance, pensions, real estate, and systems. Burden is also reduced due to division of responsibilities between clients in multi-client warehousing.
  • Occasional specialty needs: There are some manufacturers who have  specific needs for the equipment or capabilities such as rail access, secondary package capabilities or certain material handling equipment  which may be  required occasionally. Multi-client warehousing ensures higher utilization of such resource by multiple users. 

Multi-client warehousing has many benefits and can act as a logical solution for business storage and distribution needs.