Will Co-warehousing find a space between us?

You might be wondering why are we discussing co-warehousing? Are we talking about killing the business?

So, a ‘No’ for all your doubts. It is all about sustainable and affordable means of development.  We were at the IWS Summit, where many panellists were discussing on agenda like land scarcity, resource scarcity, sustainable development. We were awestruck to find the buzz created by the concept of Co-warehousing. Every key player discussing the change in the picture of Warehousing once the idea of Co-warehousing infiltrates it.  As usual, some favoring its relevance whereas others throwing points to counter it. Listening from a distance, it hit my senses that this question cannot be lost in the foggy air outside. Whatever goes below this is an outcome of the discussion.

Specifically talking about the E-commerce giants, co-warehousing played a vital role in their establishment. 

With just hearing the word “Warehouse” there is an imaginary picture formed in our heads that is enormous in terms of space, but the fact is that the size of warehouse depends on the needs of the business.

Co-Warehousing made its space in today’s world of needs, the reason being feasibility and economical. The concept of Co-Warehousing flamed up with the raise in the Startup Industry. With individuals moving more towards running their own business, most of them being E-commerce and Ecommerce Logistics, Warehouses have been in most of the checklists.

One more factor that cannot be ignored is the movement of Shopping preference from Offline to Online.

Factors driving the future of Co-warehousing?

In countries like Australia, the concept of Co-Warehousing turned out successful to an extent where running a Co-Warehouse became the most opted Business, examples includeestore Logistics, PikPak, Warehouse Exchange, and many more. The most driving benefits of Co-warehousing are listed below :

• On-Demand Warehousing : Ups and downs are something that every business goes through, and Start-ups often face the phase. In situations when online sales drop down and the same continues for a long period, bearing the charges of the Warehouse becomes an additional expense for the business.

• Helps in Reducing Capital Expenditure : When you have an option to save on your expenses, there is no one who would not opt for it. Buying a Warehouse asks for heavy investment and not everyone can afford to have it. Rather than investing in acquiring the capital, the idea of renting one to fulfill your needs sounds like a better option. This even cuts down the Direct and Indirect costs of the business.

• Good for Small Players : It takes a lot of courage to start your own venture, and a good sum of investment too. With the ease of doing business offered by the governments of different nations, a sudden increase in the number of Startups has been observed. Being the small players, affording a Warehouse is a deal out of its boundaries. On the other hand, there are options available to share a Warehouse. The sharing option is undoubtedly the most economical for them and Startups always go for it.

• Rise of new innovative Concepts :  Innovation has spread its roots to every corner, then how can it miss to flourish here. Innovative offers make the idea of Co-Warehousing even more successful. In Australia, the concept of Co-Working and Co-Warehousing has found ground to flourish together. Brands who made it big have come up with the idea of fusing their working space and the logistic place.

Even a major contributor in Sustainable Development, Co-warehousing is gradually acquiring markets in countries like India. Stating  that there is much scope for Co-Warehousing will not at all be questionable because “Sharing is Caring”.