Tips to maximize the benefits of shared warehousing!


Are you on a lookout for a solution where you can store your products, cater to your storage requirements and minimize your spending? Shared warehousing space can definitely fit in all these requirements.

In case you want a warehouse that will cater to all your supply chain needs, it is obvious for you to have certain reservations about sharing your product space with other products in one building. It is true that there are certain disadvantages of shared warehousing however, its advantages definitely exceed the disadvantages.

Here let’s take a look at 5 benefits of shared warehousing.

5 Benefits of Shared Warehousing

1. Cost
When you share a warehouse space, you are sharing the cost of the warehouse with all the clients. This in a way can reduce the overall expenses that you have to bear on this warehousing. You as a company needs to pay only for the space that you occupy.

2. Shared Resources
There are certain warehouses that offer special storage needs like refrigerated space and controlled temperature if needed. Be assured that your products will be correctly and carefully stored in the warehouse under the requisite certifications that they have to meet.

3. Industry Knowledge
A third party logistics with shared warehousing has employees that are exposed to different products. They indeed have knowledge and experience with niche industries.

4. Expertise
With shared warehousing, you will always have access to the state of the art management system and warehouse. The third party logistics that are associated with shared warehousing are well aware of managing the freight rightly along with other things such as KPIs and online reporting.

5. Security
Shared warehousing will always have security guards on duty, round the clock. Further, to avoid the security concerns there is IT infrastructure, WMS, CCTV cameras, and alike. So, be assured that your products are in the best hands and under the toughest security.

These are some general benefits that you can acquire on your shared warehousing. However, it is quintessential for you to make the most of these benefits. So, here we have come up with tips to maximize the benefits of shared warehousing.

Tips to maximize the benefits

1. Deeply analyze the Key Performing Indicators (KPIs)
This is going to take a substantial amount of time. You have to think through and through to determine how you would want to measure the success of your business. If you fail to do so, you’ll not be able to assess the value of the relationship both for yourself and the executives. The common mistake made by most is having a single KPI. Usually, this single KPI is keeping the transaction cost to the minimum. This may lead to several quality hassles and encourage shortcuts. Often, in the long run, this may increase the cost involved in other areas such as reworks, chargebacks, etc.

2. Present an absolute business profile
To be able to get the right transaction rate, one needs to have the right information so as to build an error-free order profile. A lot of shippers may not have the time or the staff to break through and offer the needed data. This could be one reason why they end up relying on the sub standard, system generated reports. Thus, in order to avoid unnecessary errors, discretion, and ambiguities, it is important to provide a complete business profile.

3. Communicate the business changes well in advance
Communication demands time, dedication and integrity. You cannot just communicate everything over night and expect brilliant results. It is going to take time and is a continuous, free-flowing process. The brighter side is, when the communication is proper, it pays off multi-fold both in increasing the productivity and decreasing the costs.

For instance, you need an increased volume of products so as to cater to an impending promotion with one of your retail customer. If you communicate this information to your third party logistics well in advance, let’s say 4 to 5 weeks ahead of the deadline, they can use the time to frame a plan of action in terms of the space required, labor required, and alike. Shared warehousing works on planning on day to day basis. Every right planning can translate to a saving in 6 to 7 figure on annual basis. To save big and make the most of your shared warehousing, it is important for you to communicate on regular basis.

4. Scheduled Communications
We have already seen above how important communication is. However, communication should not be restricted to information on changes. There are several higher level discussions that you may need to conduct. For this, you can schedule the meeting on annual, quarterly or semi-annual basis where the key focus would be on the performance expectations and the long-term business plans.

Final Say

The bottom line is having a tactical and a more strategic relationship with your 3 PL (third party logistics) is only going to prove more cost effective for you.

ShipRocket is India’s first automated shipping software that aims reduce eCommerce shipping to its bare bones. We have taken a step forward in simplifying eCommerce for Indian merchants and saving their precious time and money.



  1. Shalini Bisht Reply

    Glad you liked the article. Watch out this space for more interesting & curated content!

  2. Shalini Bisht Reply

    We’re glad you liked the information posted on this article. A lot of interesting & curated content is planned to be pushed online, watch out this space!

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