Optimizing Warehouse Logistics During Times of High Rent, Low Real Estate Inventory

Warehouse operations are a critical part of any business that involves the storage, movement, and distribution of goods. With the rising costs of logistics and supply chain management, it’s important for companies to optimize their warehouse operations to remain competitive in today’s market. 

Companies like Wagner Logistics report that by implementing cost optimization strategies for their customers, businesses reduce expenses and run smarter, more efficient warehouse operations. One of the ways Wagner offers additional savings for manufacturers is by offering multi-client warehousing services, which involves the use of shared space, labor and equipment, and provides many benefits for customers.

Multi-client warehousing offers businesses flexible space options, which can be adjusted based on client needs. This allows businesses to avoid the cost of maintaining a large warehouse when they don’t need all of the space. By sharing a warehouse, businesses can share the cost of utilities, security, and maintenance. This can result in significant cost savings compared to leasing or owning a standalone warehouse facility.

When it comes to operational labor costs, businesses can share the labor needed to manage the warehouse, which reduces those costs and empowers businesses to focus on their core competencies – not spending time and resources recruiting and retaining needed talent. 

“We don’t pass our recruiting costs on to our customers,” said Joe Oliaro, VP of sales and chief real estate officer at Wagner Logistics. “It’s an assumed cost of the labor that is needed to run the operation.”

Also essential to operating a warehouse is equipment. Multi-client warehousing allows businesses to share equipment such as forklifts, pallet jacks, and other material handling equipment. This can help reduce capital expenditures and increase efficiency by ensuring that equipment is fully utilized. Without the concern of investing in the purchase of new equipment every few years, multi-client warehousing allows businesses to easily scale their operations up or down depending on their needs. This can be particularly useful for businesses that experience seasonal fluctuations in demand.

Overall, multi-client warehousing can provide significant benefits for businesses looking to reduce costs, increase efficiency, and improve their overall supply chain operations.

 

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