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Friday, March 8, 2024

How A Shared Warehousing Space Can Benefit Your Business

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Unlike dedicated warehousing, a shared warehousing space is shared by many businesses. The key cost centers which are shared by businesses are electricity, water, waste management system, internet, security, and others. The warehouse space represents an extended area where many businesses set up their operations. In contrast to this, dedicated warehousing is owned by only one specific business. So, how does a shared warehousing space is preferred by businesses? What are the key benefits it offers? The article discusses various aspects to find the answer to these questions.

  1. Reduced Cost

In shared warehousing space, a certain part of the cost is variable and a certain part of the cost is fixed. The variable part includes the cost of availing shared services such as electricity, water, sanitizing, waste management system, internet, security, and others. The fixed part is rent, machinery, computer rent, and others. When a certain part of the cost is shared by the businesses, each of the companies is required to pay a minimum amount. Therefore, the variable part of the cost center releases the burden of huge costs. The businesses get the scope to reduce operational costs and increase profitability.

  1. Access To Specific Resources

Many shared warehousing in Kolkata focuses on particular industries such as IT, telecommunication, manufacturing, retail, and others. The third-party logistics with shared warehousing have employees of specific industry knowledge. It helps to reduce the cost of accessing trained human resources. Businesses can get specialist employees through poaching, referrals, and other methods. It also reduces the cost of training and development. Apart from this, shared warehouses focused on specific industries can offer staffs that are experts in solving many technical issues such as computer repairing, machine repairing, transport support, car repairing, and others. This way it creates synergies across the supply chain.

  1. Top Notch Security

Many real estate service providers in Kolkata understand the need of businesses in the aspect of security concerns more than anyone else. When the shred warehousing services are focused on any specific industry, it becomes easier to offer the best security solutions. The warehouse service management team can supply trained security staff, operations management staff, product verification assistants, and various other support teams to meet the support need of businesses. It reduces the risk of theft, product loss, burglary, and any other mischief. This way the shared warehousing service providers help to maintain effective discipline in the location.

  1. Flexibility

Compared to dedicated warehousing space, the cost of operations in shared warehousing is considerably low. Thus, it reduces the potential of associated risk to accessing the space. If your business is of small or medium scale and you are looking forward to expanding it around 10% to 20% in the next 24 months, you should opt for shared warehousing in Kolkata. It will not require you to pay huge money each year as rent and facility costs. But, it will allow you to scale your business by leveraging all the available benefits and opportunities to operate the business in the heart of the city.

  1. Terms

Real estate service providers in Kolkata shape the contract for accessing shared warehouses for one to three years term. After this period, they renew the contract considering all the necessary provisions. By this period, you will get the scope to assess the scaling of business and profits generated. It will reduce the risk of being overburdened with the huge cost if your business fails to generate profit. This flexibility is not available in a dedicated warehousing facility. Many businesses run out of profit as they fail to surmount the huge cost.

These are the key benefits for which businesses must opt for shared warehousing in Kolkata. Moreover, the cost of living in Kolkata is comparatively low. It also offers access to the low cost of human resources. The city offers an uninterrupted transport facility which is a must-have factor to maintain the supply chain of the business. All these benefits add up to one single conclusion is that the place is the best choice for availing shared warehouse facility for businesses.

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