Shared warehousing allows many businesses to share key resources such as electricity, internet, water supply, security, and others. It is an economic way to maintain efficiency in workspaces. Shared warehousing brings various advantages and disadvantages. What are those? This article thrives to identify different advantages and disadvantages of shared warehousing.

Advantages Of Shared Warehousing

The shared warehousing in Kolkata offers several advantages. Some of these advantages are discussed below.

  • Cost

When you need to access a warehouse for your business, the cost plays a significant role in ensuring profitability in managing the warehouse. In shared warehousing, the benefit is that you share the cost with other businesses for accessing common services. It reduces overall expenses and responsibility in managing the warehouse. You become better off paying the part of utilities which you are using.

  • Shared Resources

Shared warehousing in Kolkata allows sharing of key business resources between tenants of the building. These resources are namely security staff and labor, IT solutions, material handling equipment, and others. It helps the businesses to not take the sole responsibility in making arrangements for necessary instruments and others for maintenance and other support work. 

  • Industry Knowledge

A third-party logistics with shared resources has employees with a specific skill set, industry knowledge, inventory control, warehouse efficiency, and other critical expertise. It helps businesses to easily access the skilled workforce necessary for their specific businesses. In Kolkata, various technology parks offer this facility to access skilled resources easily without much effort.

  • Flexibility

A shared warehouse offers flexibility in scaling business. Suppose your business presently requires a 40,000 square feet area. Your business is in the growth stage which will require you to search for more areas after 24 months. The shared resources can offer you this extended space to ensure higher footfall in business. You will not require to pay for the extended space from the initial stage of business. It will help you achieve economies of scale.

  • Terms

The shared warehousing in Kolkata offers space for shorter terms i.e. 2 to 3 years. It gives the flexibility to evolve operations and scale the supply chain. It will reduce the risk of being overburdened with the huge cost if your business fails to generate profit.  

Disadvantages Of Shared WarehousingK

There are very few key disadvantages present in shared warehousing. These disadvantages are discussed below.

  • Space Availability

The key disadvantage in shared warehousing is that you will not be able to own the complete available space. You can have only a fraction of the overall space. Therefore, if you want to extend the space or make any renovation, you will be answerable to other businesses in case any issue emerges. Apart from this, many times the shared warehousing services fail to offer extended space if businesses required it. It impacts on operational aspects of businesses. 

  • No Specialized Services

In shared warehousing services you will not get any specialized services for managing your warehouse. You will not be able to renovate and readjust the facility as per your need. You have to follow established norms. Going beyond that established norm can create several issues. Apart from this, when your business is different from other businesses occupying the shared space, you would face various challenges to get the necessary facilities that are prerequisites for your business. The presence of internal politics can jeopardize the situation.

These are the key advantages and disadvantages of accessing shared warehousing services. Mostly the advantages predominate the disadvantages of the services. While accessing the service look put for shared warehousing in Kolkata which operates in specific industries. It will help you to find the necessary support without any hassle. You can access optimum flexibility and a cordial atmosphere. However, in this case, the internal competition can be severe which can negatively impact your business operations.