Seaboard Warehouse Terminals providing answers to all our clients questions.
Q: What is a public warehouseman?
Q: What is a private warehouse?
Q: What is the purpose of public warehousing?
Q: What are the advantages of public warehousing versus private?
Q: What is contract/third party warehousing?
Q: What should I expect from my public warehouseman?
An independent warehousing and distribution specialist who offers professional storage services to multiple depositors. The public warehouseman takes possession of, responsibility for, but not ownership of the goods stored.
A private warehouse is operated by the owner of the goods stored at that facility such as a manufacturer or distributor. The warehouse facility itself can be privately owned or leased.
To add value to the Depositor’s company by maximizing efficiencies within the storage component of the logistics discipline and inventory deployment.
No capital investment in facilities, equipment or human resources is require.
Costs associated with storage and handling are well defined and predictable. For a private warehouse, it is often difficult for them to determine fixed and variable costs and cost overruns are borne entirely by private operator.
Closely matches storage costs to volume resulting in clear fixed costs per unit sold.
The learning curve and investment associated with new technologies is absorbed by the public warehouseman and allocated across its client base.
Depositor’s distribution system is insulated from labor disputes.
Warehouse safety, worker’s compensation, and regulatory pressure are not the Depositor’s concern.
Reduced risk exposure to changes in technology or changes in the business patterns.
Reduced tax exposure since the Depositor does not own warehouse property, and no real estate tax is paid.
Inventory deployment is a public warehouseman’s core competency, resulting in optimal logistics channel efficiency. A private warehouse does not have the expertise regarding the optimal number of distribution centers, best locations, best design, best practices, best equipment, technology and most important, hiring and training of personnel.
Ability to provide a totally integrated logistics system for the customer, including transportation management and inventory deployment
Necessary system or procedural changes are more readily accepted and implemented by an outside expert who is not constrained by levels of internal corporate approval.
Flexibility in Market Dynamics
Ability to accommodate market peaks and dips.
Short term agreements offer flexibility to deal with changes in market conditions or experiment with more effective distribution systems.
Security is provided by the public warehouse.
Depositor can adjust space needs up or down on a monthly basis.
This is a hybrid approach to public and private services which Seaboard also offers. Unlike the public warehouse, which typically offers a month to month agreement, the contract warehouse usually has a long-term set space arrangement.
A third party operator provides a wide variety of services for manufacturers and suppliers who decide to outsource part or all of their inventory deployment operations, including packaging, assembly or other extraordinary activities. In such cases, the contract warehouse provides an element of stability in procuring services
State-of-the art processes and technology
First class storage facilities that meet your very unique requirements
Highly skilled professionals who provide strategic consultation as well as execute inventory deployment with maximum efficiency
Cost effectiveness through all steps in the logistics process