Do You Need a Public or Private Contract Warehousing Space?

When deciding where to house your products, you have a choice to make: a public or private space. Both are viable options for businesses in need of warehousing space; however, one may suit your particular business better than the other. At NOTS Logistics, we have extensive experience in warehousing, offering our vast array of clients both public and private space. Our warehousing team can help you decide which option will fit best into your supply chain.

Public Warehousing

Public warehousing is a cheaper option, as your business’s products are stored with other businesses’ products who have also chosen a public warehouse.

There are normally no startup fees, as the building is already standing, holding companies’ goods that will likely be your “neighbors.” It can be a short-term agreement, as many companies come and go with different warehouses for their needs over any period of time. It can also be a great option to choose if you are waiting on a long-term warehousing option.

Pros

• It is cheaper than private warehousing.
• It can be convenient when utilized for short-term storage.
• The space is already readily available, so you do not have any wait time.
• There are no hefty start-up fees or property taxes.

Cons

• You have to share the space with other companies.
• If at any given time you need extra space, it may or may not be available to you depending on the other companies’ inventory.

Private Warehousing

A private warehouse is yours and yours only. Everything for your company is housed there, contrary to the public space. More money is involved in creating one, as it is entirely your space. Training and building costs apply, so plan accordingly. The commitment is longer, as you are signing a contract for a warehouse that is for your inventory specifically. You can hire a crew exclusively for your warehouse, while public warehouses spread out one crew across all inventory. You are in control of who goes in and out.

Pros

• Solely your company uses the space.
• You can train your team specifically for the warehouse and your supply chain alone.
• More control over the daily activity and management.

Cons

• It is more expensive than a public space; however, overtime, a private warehouse space can be cheaper than renting a public space.
• It is a longer commitment.
• You pay property taxes.

Companies who choose this option are companies looking for complete control over their goods and typically have an extensive surplus of inventory to manage. They want to hire their own team, have their own house for their goods and to be able to visit at any time. This is also an option for companies with a larger budget, as startup costs can be very high.

At NOTS Logistics, we can help you on your quest to understand public and private warehousing. We offer creative strategic solutions in order to strengthen supply chains. We not only can help you make the decision between public and private space, but we also offer workforce management and customized distribution services, meaning we can successfully manage and run your entire supply chain. Contact us today.