Companies looking to expand their footprint and move inventory closer to end consumers are choosing multi-client warehouses, enabling them to take advantage of a smaller space within a facility.
Multi-client warehouses work for companies of all sizes. Small businesses use them to reach new markets affordably, while larger companies use them to get products closer to customers.
Multi-client solutions make the most sense for customers needing 75,000 square feet of space or less. Even companies requiring 75,000 - 80,000 square feet typically prefer multi-client arrangements, if possible, though dedicated facilities become an option at that size.
There's also another option. Penske can lease a warehouse to one client, them fill the remaining space with other businesses. As more clients move in, the original customers' cost will drop because everyone shares the overhead expenses.
There Are Several Benefits to Using a Multi-Client Warehouse
- Cost-Effectiveness: Multi-client warehouses can help reduce costs because customers only pay for the space they're currently using. Penske is a member of the International Warehouse Logistics Association and primarily uses IWLA contracts, which operate on a month-to-month basis with straightforward terms. This flexibility allows both parties to make adjustments as business needs evolve, with pricing typically reviewed annually.
- Flexible Overhead: These facilities enable customers to stay agile without absorbing extra costs. Staffing remain fluid - if a customer needs additional staff, Penske can shift people from other areas within the same multi-client warehouse, rather than maintaining dedicated teams for each client.
- Visibility and Connectivity: Penske uses a warehouse management system that's easy to get up and running. The system tracks every item in real time, so products don't get mixed up or lost.
Ready to explore how multi-client warehousing can strengthen your supply chain strategy? Contact us to discuss flexible solutions tailored to your distribution goals.