Pros and Cons of Public Warehouse

A public warehouse is a business that provides short or long term storage to companies on a month to month basis. The public warehouse also offers inventory management, physical inventory counts and shipping functionality.

The public warehouse offers both dry and cold storage, it has high security and handles all types of equipment.

Pros and Cons of Public Warehouse

Pros of Public Warehouse

  1. Helps companies to attain better customer levels

This enhanced by giving the companies information on how to handle their customers hence it becomes beneficial to companies that use public warehouses.

  1. Location

In most cases, it is normally located strategically where it can easily be located by each and every company within the area.

  1. Affordability

As compared to private warehouses, they are more affordable in that the company has no cost of employing the workers that work there. The company is only required to make its monthly payments and their goods will be stored hence it is cheaper.

  1. Companies benefit in the side of the tax

The warehouse pays tax as a single entity no matter how many companies store their goods there. As opposed to a private warehouse, the manufacturing company needs to carry the burden of paying tax alone as no other company uses the warehouse.

  1. No liability in case the company discontinues to use the warehouse

The company may decide not to use the warehouse when the demand for their product is low hence they will have no liability to meet.

  1. Flexibility in the usage of space

The company is able to be given a lot of space or reduce the amount of space depending on the goods that they have to be stored.

Cons of Public Warehouse

  1. Space may not be accessible at all times

With public warehouses, it is not guaranteed to get space anytime the company needs it. This is because the company may not be able to store all its goods the time they need the storage facilities.

  1. Systems incompatibility

This may cause communication breakdown which will make it difficult for the storage of the companies’ information hence not reliable information about the storage.

  1. Lack of specialized services

In public warehouses, there may lack specialized services in case the company needs the services. This may give the company an extra cost of looking for the services. This makes it better when a company has its own private warehouse.

  1. Lack of coordinated services

In public warehouses, they may lack coordinated services in that it may make the goods not to be handled well. This may make companies not continue storing goods in that warehouse hence losing a lot of companies’ trust.

  1. It may be costly

If the warehouse is far from the company the company will have the cost of paying for transport services and also has to pay the cost of the warehouse hence it may turn out to be costly on the side of the company.

Summary

Public warehouses are good and at times may not be the best. When it is located near the company it may turn out to be the best but if far away it may be costly on the side of the company to transport the goods. Also when they lack specialized services it may be added cost to the company. All in all many companies prefer to use public warehouses.

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