Cleveland public warehousing and distribution demand is at an all-time high.

The Journal of Commerce attributes overall warehousing demand in part to the second-quarter surge in imports that led to higher inventories. From this emerged a greater need for logistics and distribution space – particularly in the Midwest and other inland hubs. Beyond that, shifting distribution patterns that emerged during the pandemic have opened new corridors, driving higher demand in markets that used to be considered secondary. Plus, warehouses in major supply chain hubs start brimming to peak capacity, it’s the adjacent smaller markets that absorb the overflow.

Growth in this sector may mean organizations have fewer Ohio warehousing options to choose from, but it’s still important to carefully consider whether the facilities you’re eyeing can check all those “must have” boxes. For many small-to-midsized businesses, that has increasingly meant opting for Cleveland public warehousing vs. private warehousing.

What is the Difference Between Public & Private Warehousing?

As an industry sector, warehousing has evolved far beyond the times of a simple storage space. Today, warehousing is widely recognized as a central service relied upon by industries of all kinds – from consumer goods to manufacturing to retail. As an industry sector, it’s evolved far beyond

Large corporations with high volume product turnover often opt for private warehousing, in which they own or rent warehousing space that is internally operated and overseen. But for any organizations lacking the infrastructure, expertise, and capacity to take on these responsibilities, private warehousing is an attractive alternative that offers affordability, flexibility, efficiency, and convenience.

Put simply, a public warehouse is usually a large facility owned/operated by a third-party logistics (3PL) provider that offers storage space, inventory management, product fulfillment, kitting and packaging, and distribution services to many different businesses.

Cleveland public warehousing costs are typically based per-square-foot, with add-on services available depending on the customer’s needs. Some warehouses require minimum average order volume and/or higher storage rates for slower-moving shipments.

Outsourcing Northeast Ohio warehouse functions is smart when companies:

• Are just starting out and/or are relatively small.
• Have unpredictable inventory cycles.
• Need specialized storage and distribution.
• Lack the investment capital, bandwidth, time, or desire to invest in opening, staffing, and maintaining a warehouse in-house.

It’s important if you’re in the market for public warehouse space to make sure your top picks are not only cost-effective but centrally-located with scalability potential and a great reputation.

Key Benefits of Cleveland Public Warehousing

Among the primary advantages of public warehousing:

• Low investment. Private warehouses are very expensive. There’s procuring and/or building the structure itself. Then there’s maintaining the building, covering all operational expenses, recruiting/training/supervising workers, investing in technology to boost transparency and efficiency, and paying all tax-related expenses. With public warehouses, it’s essentially turnkey.
• Experience and expertise. Labor is usually the biggest expense for most businesses – especially if you want good people. Public warehousing allows companies to avoid direct management of that labor, while still trusting that the workers are knowledgeable and skilled.
• Specialty storage. If you require Ohio warehousing facilities with certain specialty requirements such as FDA registration or hazardous material capacity, it’s often easier to onboard with a public warehouse rather than start from scratch on your own. Not every public warehouse will be capable of fulfilling every specialty requirement, but they can usually refer you to one nearby that does.
• Location. Warehousing real estate goes for a premium these days. It’s increasingly tougher to find/build warehouse property in key markets for reasonable costs. Warehouse location is a key consideration when you’re looking to optimize distribution and find reliable workers. 3PL public warehouse providers are often already established – and right where you need them.
• Flexibility. Markets fluctuate all the time. Public warehousing allows for flexibility during ebb-and-flow cycles. Easy scalability means greater cost efficiency when companies aren’t paying for space they don’t use.
• Add-on services. Things like kitting, packing, assembling, labeling – these are services that many public warehouses offer.

If you have questions about whether our Cleveland public warehousing facilities can meet your needs, contact us for a consultation.

For information on Northeast Ohio Warehousing, Inventory Management, and Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.

Additional Resources:

US warehousing demand shifting inland: JLL, Aug. 16, 2022, By William B. Cassidy, Journal of Commerce Online

More Blog Entries:

Tips for Choosing an Ohio Warehouse, Oct. 27, 2022, Northeast Ohio Public Warehousing Blog