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The Disadvantages of Public Warehousing

The disadvantages of Public Warehouses

There are some disadvantages relating to the contractual agreements between the warehouse and the business lessee. When a lessee enters into an agreement, its terms are rendered for a specific period of time. This can be unhandy, for the business who has leased the space desired. Many public warehouse locations make it more difficult to continue a level of satisfaction for customers’ services. xxxxxxxxxxx Another disadvantage might be the fact that these warehouses are operated by a 3rd party. If not properly monitored, an unsatisfactory method of dealing with a business’ customers could become a detrimental aspect in relation to its customers’ needs... Lack of communication is yet another negative factor of public warehouses. This can be caused by technological devices, such as computer systems, that are incompatible.

Another drawback of public warehouses is the lack of space available, especially during the peak times of the year, such as holiday seasons, (Christmas). A business that has contracted a public warehouse has very little influence over the type or quality of business offered by this warehouse. The services, if lacking, can have negative effects upon the business/customer relationship. The temperature within the warehouse is another aspect to consider. Depending upon the product being stored reveals the amount of concern needed. Very often the temperature, within the public warehouse, is not sufficiently monitored. In relation to many goods, this incorrect temperature can create a problem.

There is also the issue of transportation. If a public warehouse is not in a good geographical location, then its use is a disadvantage for the lessee. This is an important topic of concern in today’s fast paced business world.

When the credentials and/ or references of a public warehouse are not thoroughly investigated, then the experience can result in “customer dissatisfaction” or even a “loss of customers”. It is crucial to check as to whether a warehouse is bonded and insured. If this is not the case, then this public warehouse should not be used. The reason that this is such a vital subject is due to the fact that if there is a mishap like a fire, theft, flood, vandalist situation, etc, the products that are stored can readily and / or easily be replaced without any additional expense for the company leasing the space. This is probably one of the most important details to remember when businesses acquire the services of public warehouses.

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