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Key Considerations for Co-Warehousing Spaces

The types of warehouses in Singapore are industrial buildings classified as B1 for clean and light industrial usage, B2 industrial buildings for general and special industries, Jurong Town Corporation type of flatted factories, ready-built spaces, business parks, and the former industrial properties which is the Housing Development Board. 

The functionality of the warehouse space is based on the type of business and the overall business requirements. This article explores the four types of warehouse and discusses the key considerations for co-warehousing spaces.

Traditional Warehouses and Third-Party Providers

Traditional model warehouses are suitable for medium to large companies with large bulky inventory that requires parts of the supply chain to be carried out at the warehouse for production and assembly. Although with the ability to work and operate the warehouse in full control of the goods and operations, the rigid long-term commitments, fixed space, which often are not fully utilized will only fluctuate in volume or during seasonality thus will have under-utilized space that becomes a sunk cost.

For businesses selling products either online, offline, or both, the third party providers provide warehousing storage, order fulfillment, deliveries and typically distribute multiple types of product items from different companies in a central warehouse. The two types of 3PLs are the traditional ones that handle and work with very large companies, and e-commerce fulfillment centers.

Mini Warehouses and Co-Warehouses for Small Businesses

There are alternatives to traditional warehouses for small businesses that allow the managing of their goods. Landlords or operators split up the larger warehouses into smaller partitioned units for small businesses that require a workspace together with their inventory with direct access to their products for quality checks, pre-sale branding, and customize packaging. Co-warehouses are the most cost-effective and convenient option as it combines co-warehousing and co-working space with all the standard amenities, shared warehouse storage space, sharing of operating equipment operating facilities, and shared onsite logistics services. 

Warehouse in Singapore
Image taken from https://blog.spaceship.com.sg/type-of-warehouses-in-singapore

Some Best Practices for Cost Effective Warehousing

  • Wave picking and cross-docking practices, which are money saving options for cost-effective warehousing. 
  • Linking of inventory levels, by analyzing some specifics and finding results through endless data for accuracy. 
  • Reorganizing the floor plan, and remembering personal identification.
  • Tracking the bestsellers or the high sellers, by using the quality inventory management software that can acquire real-time updates on the products. 
  • Using movable and fixed tracking options, which make the entire process faster, easier, and more intuitive.

Warehouse Design and Layout

Storage installations have become a strategic factor in businesses as warehouses are no longer a place only for storing products. It is now focused on providing service and support facilities to companies of all kinds. In fulfilling this new role, it must be properly designed, with a design project that compiles as much information as possible to ensure the installation can fulfil its function and can adapt to any future needs that should arise.

Co-Warehousing Spaces

Collaborate warehousing is a warehouse space that is specially designed for start-ups and businesses to work, store, operate and ship merchandise is the most cost-effective and convenient option in the e-commerce space. The shared operating space also includes shipping stations that come with shipping weighing scales, shipping label printers, pick/pack stations, dispatch zones for returns and deliveries. Pallet jacks, roller cage trolleys, and hand trolleys are also shared among the users.

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Chong Hui Ying, DLSM. (2019). “Seven Best Practices for Cost Effective Warehousing”. Retrieved from SIPMM: https://publication.sipmm.edu.sg/seven-best-practices-cost-effective-warehousing/, accessed 30/11/2020.

Jean. (2020). “Co-warehouse space in Singapore” Retrieved from https://blog.spaceship.com.sg/coworking-space-cowarehouse-space-in-singapore,accessed 30/11/2020.

Jean. (2020). “Types of warehouses in Singapore” Retrieved from https://blog.spaceship.com.sg/type-of-warehouses-in-singapore, accessed 30/11/2020.

Pua Shi Hui, (2020). “Co-working spaces for startups in Singapore” Retrieved from https://blog.spaceship.com.sg/coworking-spaces-for-startups-in-singapore, accessed 30/11/2020.

Wong Zhi Wei, DLSM. (2019). “Key Considerations for Warehouse Design and Layout”. Retrieved from SIPMM: https://publication.sipmm.edu.sg/key-considerations-warehouse-design-layout/, accessed 30/11/2020.

Jack Faizal Bin Sulaiman
Jack Faizal Bin Sulaiman
Jack Faizal Bin Sulaiman has substantive years of experience in airport management, specifically in the specialized areas of rescue and emergency operations. He is currently a logistics specialist in airport emergency services and logistics operations. Jack is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). He completed the Diploma in Logistics and Supply Management (DLSM) on December 2020 at SIPMM Institute.

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