warehousing Articles

Penske is proud to celebrate our 9,000 warehouse associates during Warehouse Associate Appreciation Week, June 7-13. Join us in thanking our warehouse teams for the critical role they play in accelerating our supply chains.

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Every day, more than 6,500 warehouse professionals across North and South America power Penske Logistics and its customers. This week, Penske is proud to recognize the dedication and impact of these essential team members during Warehouse Associate Appreciation Week, June 8–14.

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When warehouse space becomes constrained or costs rise, manufacturers often look for smarter alternatives to traditional dedicated storage.

Multi-client warehousing (MCW) has emerged as a compelling solution - one that give shippers the flexibility to scale with demand while spreading the cost of resources across multiple users.

What Is Multi-Client Warehousing?

In a MCW model, a manufacturer shares a storage facility with other shippers, each occupying a portion of the space based on their current needs. Typically, one anchor tenant takes the largest share, while other businesses fill in the remaining footprint. A lead logistics provider (LLP) manages the entire facility, ensuring smooth operations and compatibility among tenants.

This structure reflects the core principle of the sharing economy: maximizing the utilization of resources by distributing them across a community of users - rather than having each party bear the full cost independently.

Why Warehouse Space is A Persistent Challenge

Several long-term forces continue to tighten the warehousing market:

E-commerce growth consistently drives demand for distribution and fulfillment space

Automation and artificial intelligence (AI) adoption is increasing demand for modern, tech-enabled facilities

Labor availability fluctuates based on local unemployment rates, geography, industry and role type - all of which affect operating costs

According to research from CBRE and findings from the 2026 Annual Third-Party Logistics Study, these pressures aren't temporary anomalies - they reflect structural shifts in how supply chains are built and managed.

As Andy Moses, senior vice president of solutions and strategy at Penske Logistics, puts it: "We are at a point where warehouse vacancies are very low, and rents are going in the opposite direction."

While short-term fluctuations - such as seasonal demand surges or economic cycles - will always occur, the underlying pressure on warehousing capacity and cost is expected to persist.

Key Benefits of Multi-Client Warehousing

1. Flexible Space Allocation

MCW eliminates the need to commit to a large, dedicated facility. Manufacturers pay for the space and services they actually use and can scale up or down as operational demands shift - without being locked into log-term fixed costs.

2. Shared Resource Costs

Costs for physical space, equipment and staffing are distributed across multiple tenants, making MCW significantly more cost-effective than maintaining a standalone facility - particularly valuable during periods of rising rents or low utilization.

3.Tenant Compatibility and Synergies

Reputable LLPs, such as Penske, carefully vet and match tenants to ensure compatibility. For example, consumer packaged goods companies (such as paper goods manufacturers) can operate alongside food-grade storage spaces, as long as cleanliness and regulatory standards are met.

Beyond compatibility, MCW can unlock cross-tenant synergies. "For instance, two shippers may be able to pool truck capacity, generating additional savings that a single-tenant operation couldn't access," says Moses.

4. Advanced Warehouse Management Systems (WMS)

Modern LLPs provide enterprise-grade WMS technology configured to meet the unique requirements of each tenant - including radio frequency (RF) scanning, documentation workflows and communication protocols - even within a shared environment.

5. Smarter Labor Management

One of MCW's most impactful advantages is labor management optimization. By allocating workers across multiple accounts and adjusting staffing levels in response to each shipper's demand fluctuations, LLPs can maintain efficiency while controlling labor costs. Integrated labor management modules within the WMS also:

  • Perform analytics to identify productivity improvements
  • Flag underperformance in real time
  • Enable data-driven staffing decisions across the facility

Is Multi-Client Warehousing Right for Your Business?

MCW is particularly well-suited for manufacturers and shippers who:

  • Experience variable or seasonal inventory volumes
  • Want to avoid long-term leases or capital commitments in a tight market
  • Are looking to reduce overhead without sacrificing service quality
  • Can benefit from shared logistics infrastructure managed by an experienced LLP

By partnering with an LLP that operates MCW facilities, businesses gain access to professional management, scalable infrastructure and cost-sharing advantages - without having to build or lease their own dedicated space.

Interested in exploring whether a multi-client warehousing solution fits your supply chain strategy? Connect with a logistics expert to assess your options.

Within the warehouse, automated sorting, human-assist robotics and other once-futuristic technologies have become a reality. They are transforming the movement of goods, improving productivity and freeing up human talent to focus on more important operational decisions and safety improvements. The ability to supplement labor and remove some of the remedial and repetitive jobs is becoming increasingly important as warehousing and distribution center labor becomes harder to find.

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Penske is celebrating more than 5,400 of its warehouse workers during Warehouse Associate Appreciation Week from June 9-15. Please join us in recognizing the dedicated work of our warehouse team and impact they make.

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A cobot, short for collaborative robot, is a computer-controlled robotic device designed to work alongside humans within a shared space, providing support through direct human-robot interaction.

A backorder is an unfulfilled customer order due to insufficient inventory levels or production delays. When a product is on backorder, the customer’s order is recorded and prioritized for fulfillment once the item is restocked. Backordered item status is typically tracked within inventory management systems.

Warehouses and distribution center yards are critical links in the supply chain, connecting carriers and storage facilities. Effective yard management — tracking and managing all activities in the yard — is essential to keeping operations running smoothly, but it is a complex process.

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Penske celebrates Warehouse Associate Appreciation Week from June 11-17. Please join us in recognizing the dedication and commitment of more than 5,000 Penske warehouse associates who keep the world moving forward.

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Food Logistics magazine has named Steve Chambers, vice president of operations for Penske Logistics, as one of the winners of this year’s Rock Stars of the Supply Chain award, which recognizes influential individuals in the industry whose achievements, hard work and vision have shaped the global cold food supply chain.

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Penske Logistics has earned entry onto the 2022 Top Food Chain Providers listing, as announced by Food Chain Digest, the official publication of the Food Shippers of America.

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Penske is thankful for our hardworking warehouse associates who keep our supply chains moving.

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Cristy Sinclair, the first-ever Penske Logistics director of food safety, has been recognized as a 2022 Rock Star of the Supply Chain by Food Logistics magazine. The honor recognizes influential individuals whose achievements, hard work and vision have helped shape the cold food supply chain.

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Warehouse location refers to the specific spot, such as a shelf or a bin, where a product is located within the four walls of a warehouse. Location impacts the efficiency and timeliness of picking by letting warehouse workers know the exact location of an item. When designing a warehouse, data can be assessed so that the product most often picked is placed in the most efficient spot. As products change and demand for products changes, the inventory layout can be updated to ensure continued efficiency.

Warehousing is the utilization of a warehouse to store and process products. Warehousing is important for businesses that manage inventory as having a central location or locations for product storage helps to keep things organized and manageable, while also allowing for efficiency and productivity in operations. Warehousing is an important part of the supply chain and effects everything from inventory slotting to on-time customer delivery. If the operations within a warehouse are ineffective, the entire supply chain may be immobilized through lack of product or delays.

A warehouse is a storage place for products that, if designed well, increases business efficiency. Inventory stored within the four walls of a warehouse is organized or slotted to ensure products are in the right place at the right time, making picking or pulling goods for distribution a much easier and efficient process. Warehouse design is the foundation of an efficient supply chain, and warehouses can be privately owned, shared between multiple clients or rented out from a third party.
Slotting refers to the placing of inventory efficiently within the warehouse and coordinating product placement based on what moves the fastest. (e.g., products that move the quickest would be placed closest to the dock to minimize travel and save time). Inventory is assessed and identified regarding how quickly it moves. The quickest movers go closer to the dock to minimize travel, so employees can pick them faster and get them out the door. The slow movers are stored on the floor further away from the dock. If there is racking, they can be stored at the higher locations. The goal is to make it easy to put the product away and more efficient to pick the product. Inventory is reviewed consistently to account for any shifts in product popularity due to demand, holidays or a change in seasons.

Receiving inventory is the act of inspecting, verifying and accepting a shipment into inventory within a warehouse or operation. In a transparent supply chain, every link has access to relevant information on the origins and status of products, including when inventory will arrive. Effective inventory receiving requires the development of a safe, fast and organized process for handling received inventory, and a process for accurately tracking that inventory from the time it arrives in your warehouse to the time it's shipped.

Replenishment stock includes goods moved to restore inventory and keep the right product in stock within the warehouse or operation. At Penske, the replenishment process is managed through its warehousing services, transportation management, brokerage services and logistics planning. In addition, by also utilizing technology, a company can quickly provide detailed information on inventory, order status and potential at-risk situations to avoid crisis and ensure the right product is in stock within the warehouse. Stock replenishment is an important part of managing inventory as it ensures the right stock items are there to meet customer demand.

Racking is a type of system utilized within warehouses to store and organize products on multiple levels. Racking can be single-deep, double-deep, push-back or drive-in depending on the size of the warehouse. Racking is a good storage solution option in situations or geographic locations where warehouse space may be more expensive as it might be most cost effective to utilize the vertical space versus the square footage in a specific warehouse.