Pros and Cons and Range of Services of Public Warehousing

Introduction to Supply Chain Management
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Public warehousing offers companies short or long-term storage monthly. Its transaction fees include storage and inbound and outbound fees. Generally, companies are charged per pallet or square foot. Many think that it is only a facility where the company uses as a storage area of their goods. However, in reality, it aids in inventory and acts as a shipping facility. The owner will charge his clients for the volume of the products stored and other services that the client utilizes CITATION Mur19 \l 1033 (Murray, 2019).
Using a public warehouse has many advantages. First, it will not be necessary for the company to hire warehouse employees. Second, there is no need for any inventory software or warehouse equipment. Third, the costs incurred by the owner from its maintenance may be passed on to the clients as additional charges. Fourth, it is convenient for a short-term solution. Fifth, it increases the flexibility of the company. Hence, attracting more clients. Sixth, it delivers a wide range of labor solutions such as a dedicated workforce, picking, packing, and it may also act as a satellite location with real-time data. Seventh, it reduces opportunity costs and adjusts depending on the seasons. And last, the client is not subjected to taxes since he does not own the place CITATION Mur19 \l 1033 (Murray, 2019).
Its disadvantages primarily concern potentially high costs, lack of coordinated service, and space availability. Since this offers a pay-as-you-go system, it significantly raises the costs per cubic foot per time spent by the client as compared to a permanent warehouse. If the client miscalculates and overutilizes the public warehouse space, the charges will also increase more than the target reduced expenses. Additionally, public warehouses can only handle the deliveries of the client but they cannot provide coordinated service for...