Cleveland Public Warehousing Offers Flexibility, Scalability, and Profitability
Most businesses have periods of uncertainty. But if your operation regularly deals with swings in demand, product overflow, or changing space requirements due to promotions/new products, you may likely benefit from Cleveland public warehousing.
This type of warehousing arrangement is one in which third-party logistics (3PL) providers offer storage service fees to companies that need warehouse space, but don’t have their own private warehouse facility or they need additional capacity. Contracts can be long-term or short-term, allowing businesses to pay only for the space they need, when they need it. This helps reduce inventory waste, and saves money on labor costs.
When your warehousing company is also a 3PL, you also get the benefit of a variety of logistics and value-added services, such as:
According to IBISWorld, an industry research firm, the annual revenue of the public storage and warehouse industry in 2022 was approximately $35 billion – a figure that’s grown nearly 3 percent annually over the last five years. Public warehousing is overall outpacing the private warehousing sector (and in fact, the economy at-large). Increases in e-commerce – particularly in the retail sector – continue to fuel the growth of Cleveland public warehousing.
This isn’t surprising on our end, as we’ve noted similar trends here at our Northeast Ohio facility.
The public warehousing arrangement tends to work best for companies with:
- Need short and flexible contract terms.
- Are brand new to their industry or the area, and need a bit of time to determine how much space/which services they actually need.
- Experience notable fluctuations in inventory due to varying levels of demand.
- Product overflow at their existing warehouse/distribution center.
- Seasonal distribution variations.
- Supply chains that require a distribution center local to the region the public warehouse is located.
Key Business Benefits of Cleveland Public Warehousing
Public warehousing offers several notable benefits for businesses. Here are some of the primary advantages:
- Cost Savings. Public warehousing allows businesses to avoid the significant upfront costs associated with building, leasing, or managing their own warehouse facilities (including labor, equipment, and technology). Instead, they can utilize a shared space and infrastructure provided by the public warehouse, ultimately reducing capital expenditures.
- Flexibility and Scalability. Public warehousing offers flexibility in terms of storage space and service utilization. Businesses can easily scale up or down their warehousing needs based on fluctuations in inventory levels or seasonal demands. This scalability allows for efficient management of inventory without the need for long-term commitments.
- Expertise and Specialization. As mentioned earlier, public warehouses are typically managed by logistics professionals who have expertise in handling and managing various types of products. They are equipped with efficient inventory management systems, specialized equipment, and trained personnel. Businesses can benefit from this specialized knowledge and experience without having to develop it in-house.
- Geographic Reach. Public warehousing facilities are often strategically located in key transportation hubs, making them easily accessible for distribution purposes. This can help businesses reach customers more efficiently and reduce transportation costs.
- Reduced Administrative Burden. By utilizing public warehousing, businesses can offload the administrative tasks associated with managing a warehouse facility. The public warehouse takes care of receiving, storage, inventory management, order processing, and other logistics-related activities, allowing businesses to focus on their core operations.
- Improved Service Levels. Public warehouses are designed to provide efficient and reliable storage and distribution services. They often offer advanced inventory tracking systems, order fulfillment capabilities, and value-added services such as kitting, labeling, and packaging. This can help businesses enhance their overall service levels and meet customer expectations.
- Risk Mitigation. Public warehousing can help mitigate risks associated with owning and operating a warehouse. Businesses are not responsible for maintenance, repairs, security, or compliance with safety regulations, as these responsibilities lie with the public warehouse operator. This can reduce the potential liabilities and operational risks for businesses.
Overall, public warehousing provides businesses with cost-effective, flexible, and efficient storage and distribution solutions, allowing them to focus on their core competencies and achieve their business goals.
For information on Warehousing, Inventory Management, Fulfillment, Distribution, and Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Warehousing and Storage Industry, U.S. Bureau of Labor Statistics
More Blog Entries:
Advantages of Cleveland Warehouse Value Added Services, May 31, 2023, Cleveland Public Warehouse Blog