What Are Public Warehouses And How Can They Use For Business?
A public warehouse is a stand-alone company that specializes in warehousing and distribution. It is not only a facility where a company can store their products but also offers inventory management, physical inventory counts, and shipping functionality. These services include various ways of storing goods based on environmental needs. As AI and machine learning continue to evolve warehousing, the driving force behind it is not physical storage or third-party support; it is all about improved data management. Companies that own & operate public warehouses invest significantly in modern facilities be competitive. The role of the public warehouse in marketplace today is to allow small and medium businesses (SMB) to stay competitive against larger businesses by renting public warehouse space from a third party.
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The supply chain has been disrupted, affecting both supply and demand , as COVID-19 hurdled globally. Warehouses, distribution & fulfillment centers were affected. However, the pandemic has resulted in required and major modifications in storage procedures, as well as an alarming call for some and acknowledgement for others. According to the International Director of supply & chain management at JLL, the pandemic “put a spotlight” on several significant developments in supply chain management. The call for more automation & technology has increased to maintain efficiency even after the pandemic. Thus, the impact of COVID-19 has promoted renewed assessment of action on everything from the degree of automation to the required advanced software necessary according to the warehouse building size and location.
A public warehouse has all of the infrastructure, equipment, and workforce in one place. SMBs have the feasibility to start stocking & shipping the deliveries to the customers immediately without spending capital, resources & time. On the other hand, there are no property tax liabilities with public warehouse space for the tenants. Those costs are the warehouse responsibility, which leads to the high demand & dependency of the small vendors towards public warehouses rather than private ones. Therefore, such preferences are expected to increase the demand of public warehouse & storage market.
Top Impacting Factors
- Advancement in IT & transportation, high demand for refrigerated warehousing, rise in the order of e-commerce sector, lower rental costs, and clever locations concerning urban areas drive the growth of public warehousing market.
- Inaccurate inventory, seasonal demand, high labor costs, poor layout/space utilization, and product diversification hinder the growth of the public warehousing market.
- Data-driven capacity & planning, service automation, and multi-modal optimization are expected to create growth opportunities for the public warehousing market.
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