What is a Public Warehouse in E-commerce?
A public warehouse is a third-party storage facility that businesses can use to store their products. These are used in e-commerce to provide businesses with additional storage space and greater flexibility when handling their inventory. Public warehouses can also provide additional services such as inventory tracking, pick-and-pack operations, labeling, and kitting.
Significance of Public Warehouse in E-commerce
Public warehouses play an important role in e-commerce by providing a secure, efficient, and cost-effective way to store and distribute products. The benefits include –
- They are the perfect bridge between manufacturers and their customers, making it possible to quickly and easily move products to their destination.
- Public warehouses offer various services, such as inventory tracking, temperature control, order fulfillment, and pick-and-pack services, that make it easier for online retailers to manage their inventory.
- They also provide a central hub to store and ship products, reducing shipping costs and improving delivery times.
- Public warehouses also provide a secure storage option for products, helping to reduce theft and damage.
- Public warehouses can streamline operations, reduce overhead costs, and improve customer service by providing reliable, quality storage and distribution services.
Prerequisites to Calculate Public Warehouse and How It Works
The following are the prerequisites –
1. Understanding of inventory management
2. Cost calculation
3. Supply and demand of items
4. Contract negotiation
Use Case With Public Warehouse
Suppose a large business owns a warehouse and provides public warehousing services. It offers a wide variety of services, including order fulfillment, returns processing, inventory management, and more on a global scale. This business will not own the goods stored in the warehouse but the storage space and equipment.