Shared warehousing is becoming popular in Kolkata mainly due to the cost benefits it brings. As a result of this, many small-scale businesses want to opt for shared warehousing, which seems like a perfect warehousing solution to them.
However, there are also some businesses that don’t consider this a convenient option for them. Sharing storage space with alien organizations does not satisfy them.
All that said, shared warehousing has numerous advantages and some disadvantages too.
The article rounds up the advantages and disadvantages that Shared Warehousing in Kolkata brings up.
Merits of Shared Warehousing
As mentioned, there are a number of advantages of shared warehousing. Apart from a reduction in costs, there are some other benefits as well.
This may sound like a no-brainer. When you share warehouse space with other companies, the result surely is a reduction in costs. On the other hand, it might cost you a huge amount when you want to hire or rent warehouse spaces solely for your business. Not only will it cost more, but because you have to spend a lot on rent for warehouses, you may face a lack of available funds under disposition which will only set your business on the back foot.
Access To Specific Facilities
The providers of shared warehousing are ready to give you access to the spaces. Companies usually hire such spaces to store products that meet particular conditions, e.g., temperature. Shared warehouse providers design their spaces so that different types of businesses can store in the same warehouse space.
Therefore, storing goods in shared warehouses serves you dual purposes:
- You can store the products under specific conditions.
- Your price will also be much lower than dedicated spaces.
In dedicated warehouses, the lessee or the tenant is liable for the safety and security of their spaces. The fact is just the opposite in shared warehouses. The warehouse providers make high investments in the security of the spaces.
The security for Shared Warehousing in Kolkata comprises several layers. It constitutes superior-grade IT infrastructure, cameras, and security guards around the clock. With these, the warehouse tenant feels more secure than the owner of high-cost dedicated spaces.
As with everything else, shared warehousing also has some disadvantages and they are mentioned below.
Services Are Not Specified
Shared Warehouses in Kolkata do not provide spaces for businesses that need to meet certain specifications
For example, E-commerce service providers require specified services to meet the demands of their specialized business processes, products, locations, etc. But shared warehouses are often large spaces with no special facility for E-commerce storage.
Lack of Space Availability
Shared warehousing means clients rent spaces in a shared environment. It has a serious disadvantage. There may be situations when you are in need of space but nothing is available. The situation usually arises during peak seasons.
Now you are aware of the merits and demerits of shared warehousing. As you can see the advantages far outweighs the demerits of shared warehousing. So, if you are running an SME, and want to use your funds carefully, you may want to opt for a shared warehouse, which will not only cost less but will also provide you with several other advantages that will only help boost your business growth.