Did you know there is more than one type of warehousing options for your business to choose from? Dedicated or Shared warehousing for small businesses, offers you different benefits depending on your budgets and business needs.
The right warehousing model will ensure competitiveness for businesses moving high volumes of goods near the US-Mexico border. Let’s examine the differences between shared and dedicated warehousing and why EP Logistics is a trusted partner for warehousing and transportation optimization along the MEX-USA border.
What is Shared Warehousing?
Shared warehousing consists of multiple businesses sharing warehouse space, resources, and costs derived from storage. It is a cost-effective solution if you don’t need a dedicated warehouse.
How it works:
- Warehouse space is divided for it to be shared among different businesses.
- You pay only for the space and services that you need and use.
- Shared warehousing offers a pay-as-you-go model.
- Logistics tasks like order processing and distribution, e-commerce fulfillment, and warehouse exchange are handled by the shared storage facilities for businesses on behalf of the tenant businesses.
- This warehousing model provides access to scalable storage solutions for growing businesses.
- It is ideal for small businesses wanting to minimize overhead and maximize resources.
- Shared warehousing gives businesses access to high-quality storage and services with minor investment.
Differences Between Shared and Dedicated Warehousing
To decide which mode suits your business needs first, whether shared or dedicated warehousing, it is important to become familiar with the main differences between each one.
Besides the difference in budget, let’s dive into how each one handles control, cost, and customization:
- Control over operations:
Control is more limited when it comes to shared warehousing for small businesses, as resources are being shared.
Dedicated warehousing, however, allows a business to have autonomy over its operations, providing more control over every aspect like layout design or staffing for example.
- Cost implications:
Businesses can achieve reduced operational costs with shared warehouses. Because both space and resources are being shared, it becomes a very affordable option, especially for start-ups and small businesses.
Dedicated warehousing, on the other hand, is more expensive as the service and facilities are exclusive, as well as providing custom-tailored services.
If you are looking to have a higher control and customization over your operations then, dedicated warehousing space is the to-go option.
If you have a smaller inventory and are looking for a cost-effective solution and an easy way to manage your operations, multi-tenant warehousing solutions (shared warehousing) are the best choice for you.
Top 12 Benefits of Shared Warehousing for Small Businesses
Start-ups and smaller businesses can take advantage of all the benefits and advantages of shared warehousing for small businesses.
From cost savings to improved scalability and access to modern facilities, shared warehousing for small businesses is an ideal solution for companies looking to optimize costs while enhancing their operations:
1. Cost Savings
You can achieve reduced operational costs with shared warehouses because expenses like rent, utilities, and staffing are split among different businesses. Most shared warehouses have a pay-as-you-go model where you only pay for what you are using.
2. Scalability
Shared warehousing for small businesses provides scalable storage solutions for growing businesses as it allows them to adjust their storage requirements according to their current needs and growth as well as their market demand.
3. Access to Modern Infrastructure
It also makes having access to advanced technology, such as warehouse automation tools, easier and without the high costs of having to own their own infrastructure instead.
4. Flexibility in Logistics
Shared storage facilities for businesses also offer additional services like picking and packing processes, fulfillment services in shared warehouses, and order processing and distribution that are necessary to complete the supply chain.
5. Collaboration Opportunities
Being part of a shared storage facility for businesses gives your business access to a network that can foster partnerships, leading growth and innovation opportunities.
6. Inventory Visibility
This type of warehousing often comes with implemented tools for real-time inventory tracking, which on your stock and inventory levels and make better-informed decisions.
Learn more about the Impact of efficient inventory management to maintain supply chain efficiency.
7. Reduced Overhead Costs
Choosing shared warehousing for small businesses gives your business access to professional warehouse services, eliminating expenses like the need to hire and train warehouse staff.
8. Ease of Entry
It’s easier to get a shared warehouse space, avoiding the upfront investment required to own or hire a dedicated facility. This way, it is easier for a small business to start and enter the market.
9. Shared Expertise
Another advantage is that having a shared space means it is managed by a professional logistics company, which brings its expertise in efficient storage, transportation, and handling of your goods.
10. Eco-Friendliness
Shared warehousing for small businesses promotes resource sharing, helping reduce the environmental impact of warehousing operations.
11. Access to Technology
Shared facilities allow the business to access and integrate advanced systems like warehouse exchange platforms, into their operations, to help them run their supply chain smoothly while better utilizing space and resources.
12. Adapting to Market Fluctuations
It is also easier for small businesses to adapt to changing market and seasonal trends ensuring Supply chain efficiency during events like early peak season and unforeseen changes, to scale up or down as needed.
This flexibility allows keeping the budget in check while remaining competitive.
Challenges of Shared Warehousing (and How to Overcome Them)
- Limited Control Over Operations:
Outsourcing your warehousing means the handling and managing of goods is somewhat restricted, as space and resources are shared and controlled over by the 3PL provider. (learn more: What is outsourced logistics)
At EP Logistics, we stay flexible providing you customizable solutions within shared spaces, so that you can feel in control of your stock at all times.
- Potential Security Risks:
Sharing space with other businesses can bring up concerns about the safety and security of goods.
Our warehousing services implement security protocols, including C-TPAT-certified warehouses, ensuring the safety of your inventory at all times, providing you with peace of mind knowing your goods stay safe at all times.
- Coordination with Other Tenants:
Sometimes conflicts can arise among other tenant businesses due to miscommunication which causes scheduling overlaps.
This is why we strive to ensure seamless coordination with all other tenants and third parties involved in the operations to maintain good communication and prevent conflicts. This way we make sure the operations flow is not disrupted at any time.
Why EP Logistics is Your Trusted Partner for Shared Warehousing
With over 20 years of proven experience, our shared warehousing for small businesses, and services can be customized to suit your business needs.
Our Warehousing Services specialize in optimizing warehouse space for small businesses as well as transportation resources, particularly for goods moving across Mexico and the USA borders.
We have multiple strategically located warehouses in El Paso, Ciudad Juárez, and Monterrey to make it fast and convenient for your business to run its international trade operations.
We also offer complimentary services that will ensure the passing of your goods between MEX-USA borders is smooth.
Whether you need e-commerce shared warehousing for small businesses, customs brokerage, or fulfillment services in shared warehouses, we’ve got you covered.
What Makes Us Stand Out
Take a look at what makes us stand out as a professional and reliable 3PL:
- Flexible storage options: Our scalable storage solutions for growing businesses adapt to your needs.
- Cost-efficient logistics services: From order processing in warehouses to supply chain efficiency, we oversee the smooth management of all your logistics operations.
- Expert support: You’ll gain access to professional warehouse services with our dedicated team, as well as the expertise of our team in many other logistics areas, all in one place.
Choosing us, EP Logistics as your logistics company, will allow you to plan ahead and stay ready for peak seasons, help you easily expand into new markets, and improve the efficiency of your overall supply chain.
Looking for efficient shared warehousing for small businesses? EP Logistics is your go-to partner for optimizing warehousing and transportation solutions near the MEX-USA border.
Explore our wide range of logistics services designed to support your business growth.
We’re here to help! Visit EP Logistics or contact us today to find the perfect customizable warehousing solution for your specific needs.
