As consumer purchasing trends evolve, new companies emerge, and small and medium-sized businesses expand, the demand for innovative warehouse space is increasing rapidly 1. In response, many businesses are turning to innovative solutions like Shared User Warehouses.
But how do these warehouses operate, and what benefits do they offer to businesses?
What is a Shared User Warehouse?
Shared user warehousing, or multi-client warehousing, is a flexible and cost-efficient model where multiple businesses share a single warehouse facility. Each business occupies only the space and resources it requires, allowing for scalability while optimising both costs and logistics. This model benefits new companies that emerge and helps small and medium-sized businesses expand by sharing infrastructure and resources. This solution is suitable for omni-channel, retail and wholesale operations. Businesses can streamline their supply chain, while still maintaining control over their own goods and services.
The model often includes additional value-added services such as: 
- Kitting and co-packing: Combining different products into one package.
- Customised: Tailored services based on specific business needs, such as re-labelling and gift wrapping.
- Returns operation: Including grading of ABC stock, repair and refurbishment.
- Cross-docking: Moving products directly from inbound to outbound shipping with minimal storage time.
This makes shared warehousing a highly customisable and efficient solution, particularly for businesses looking for outsourced management of logistics without losing their brand identity. It creates a ‘warehouse within a warehouse’ experience that combines economies of scale with individual business flexibility.
Key Benefits of a Shared User Warehouse
1. Shared Costs
Shared warehousing has the potential to achieve cost savings when compared to dedicated fulfilment models. Some key areas where costs are reduced include:
- Building costs: The initial investment in real estate and construction.
- Utilities: Costs for electricity, water, and other utilities.
- Management: Shared across the operations.
- Equipment: Shared investment in MHE (material handling equipment), shelving, and other essential equipment.
- Maintenance: Regular upkeep and repair of the facility and equipment.
2. Scalability and Flexibility
Predicting demand can be a real challenge in e-commerce, consumer and retail. Rapid shifts in customer preferences and market trends often require varied adjustments. Shared user warehousing provides the flexibility to adjust operations according to business needs, allowing for seamless scaling up or down.
“Flexible warehousing is at the forefront of modern logistics…It enables businesses to swiftly adapt to changing market demands and seasonal fluctuations without [Some of] the long-term commitments of traditional warehousing,” highlights Inbound Logistics 2.
This flexibility can be particularly important during key times of the year, such as peak periods, new product launches, and marketing initiatives.
3. Focus on Core Business
Outsourcing storage and logistics to a shared user warehouse offers businesses the opportunity to streamline operations and focus on their core activities. By removing the need to manage in house warehousing logistics, companies can focus their resources to areas that directly drive growth, such as product development, customer service, and marketing.
4. Access to Advanced Technology
Being in a shared user facility that provides state-of-the-art automation technology means businesses can embrace automation without significant upfront investment. According to Statista 3, the warehouse robotics market is expected to grow by 16.13% in 2024 and beyond, highlighting the importance of technology in logistics.
Warehouses with smart solutions that enhance productivity and accuracy, along with automation, allow businesses to stay competitive and access innovations that might otherwise be out of reach.
5. Enhanced Shipping Options
Opting to a shared user warehouses can help enhance shipping speed, additional volumes, and customer experience, which includes:
- Later cut-off times: Utilising carrier collection times with other shared users and in turn later cutoff times for online ordering, enhancing customer experience.
- Proximity to carriers: Warehouses are typically located near transportation and Carrier hubs. This proximity reduces transit times and allows later collections.
- Multiple shipping options: Combined volumes with other shared users operations provides access to multiple shipping carriers and the most cost effective rates.
By embracing these enhanced shipping options, businesses can better meet consumer expectations and stay competitive in an evolving market.
Choose Unipart for Your Logistics Needs
At Unipart, we have the knowledge and expertise to support your operations within one of our Shared User facilities.
Our latest site, Warth Park, located in the Golden Triangle, is a fantastic option for businesses looking to foster growth through flexible and efficient warehousing and inventory management solutions, whilst creating excellent customer service and a first in class experience. Download our Warth Park brochure for more details.
If you’re interested in how shared user warehouses can benefit your business, please contact Emma Voss at emma.voss@unipart.com.
References
- Ukwa, Latest report predicts sustained growth and continued demand for warehousing, 2024
- Inbound Logistics, What is Flexible Warehousing? Definition, Benefits, and What to Look For, 2024
- Statista, Warehouse automation market worldwide – statistics & facts, 2023