Public Warehouse Companies - Everything You Need to Know

The Ultimate Guide to Public Warehouses: How to Find the Best One

Find out what public warehouses do and how they can help your business manage all of your warehousing needs. Get matched to public warehouses today.

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Looking for the Best Public Warehouse Companies for Your Business?

Public warehouses can be a highly profitable investment if you choose the right company and implement the partnership correctly. These companies offer flexible storage solutions, advanced inventory management, and efficient distribution services. As the warehousing market is projected to grow from $691.74 billion in 2023 to 963.74 billion by 2028, the demand for reliable public warehouses is increasing.

Public warehouses help you manage your inventory more effectively, reduce operational costs, and meet the growing needs and trends of e-commerce, which requires quick and accurate order fulfillment. Some further benefits your organization receives from public warehouse companies include lower fulfillment and shipping fees and less overhead for warehouse and operational costs. They can also improve the speed and quality of your business operations, help you enter new markets, and provide access to hidden industry expertise.

The Challenge to Finding the Right Public Warehouse

Finding the best public warehouse company for your business is a challenging task. Verifying the truthfulness and validity of information and sorting through false claims online makes it even harder. Your organization must find the perfect fit for your situation and within your designated region. Therefore, you need a proven company that will provide high-quality service at an affordable cost. But you can rest easy because you’ve found the right place for all this information. We take the hassle out of finding the right public warehouse companies.

Furthermore, your final choice of public warehouse companies can make or break your business. The wrong company can lead your organization to big problems, including miscommunication, accounting errors, or significant inventory issues. This can result in lost products, shipping and receiving delays, or incorrect orders. Consequently, all these adverse situations can lead to a loss of business, costing you profits and damaging your reputation in the industry.

How We Make Searching for Public Warehousing Hassle Free

Thankfully, WarehousingAndFulfillment’s expert service saves you time and money. Since 2005, we’ve been collecting necessary data and screening public warehouse companies. We can instantly perform a search and provide you with a short list of your best options. Our reports are completely unbiased since we are not a warehouse and are not part of any warehouse affiliations. We use a rigorous screening process, including a business assessment, financial checks, and customer feedback.

Our team has worked in the public warehouse industry for decades and has run public warehouse companies in the past, so you receive expert knowledge. Unlike other referral agencies or brokers, our service is free for you because we charge the warehouses a small, one-time fee to get the chance to quote your business. This way, your pricing is not impacted, and you do not pay anything extra.

To make it easier for you, we learn their capabilities, the types of products and services they specialize in, and their operational volumes. We also examine their key success factors, including the size of their customer base, years in business, and customer retention rate. We also explore their annual order volume and total accuracy rates for orders, shipping, and inventory.

Our service is easy to use. First, just tell us about your business needs and what goals. Next, you will approve our short list of up to 5 public warehouse companies, and then we will match them with you. Finally, your personalized matches will contact you with comprehensive quotes and compete for your business.

The Most Comprehensive Resource for Public Warehousing Services

Many businesses find choosing the right public warehouse company challenging because they don’t know all the details. So we want to provide you with all the information you need to learn about public warehouse companies. Our extensive guide covers everything from determining if a public warehouse will help your business, to understanding costs and finding the best companies in your region.

Read on to learn everything you need to know about public warehousing, including how public warehousing companies can help your business!

What are Public Warehouses?

A public warehouse is an independently-owned storage facility that provides short or long-term storage solutions for several clients, including private individuals and SMBs, to house their inventory. Public warehouse companies typically rent space to customers per pallet or per square foot. Public warehouse storage can provide customers with a variety of storage options for their goods, including temperature-controlled storage that manages humidity, refrigeration, or cold storage.

Public warehousing process: shipping goods, receiving and storing products, managing inventory, picking and packing, shipping orders, and handling returns

Public warehouses are run individually by the public warehouse company themselves so that the client does not have to worry about the maintenance, construction, or management of the storage site. Public warehouse storage companies house and manage inventory from many different clients, which means that available space fluctuates and is provided on a first-come, first-serve basis. While many companies begin using public warehouse storage as a short-term solution, they oftentimes continue to use public warehouses for long-term periods due to the convenience they provide.

Public Warehouse vs. Private Warehouse

In a private warehouse, you own or rent the space and have full control over how it’s used. You decide on the layout, staffing, and operations. It’s usually more expensive but can be customized to fit your specific needs. On the other hand, a public warehouse is shared with other businesses, and you only pay for the space you use. It’s more cost-effective and managed by the warehouse provider, so you don’t have to worry about staffing or maintenance. However, you have less control over the operations and may need to adapt to the warehouse’s rules and procedures.

There are many different types of warehouses outside of public warehouses as well. These include private warehouses, smart warehouses, distribution centers, automated warehouses, bonded warehouses, consolidated warehouses, cooperative warehouses, bonded storage centers, and government warehouses, to name a few.

Public Warehouses vs. Fulfillment Centers – What’s the Difference?

As their name suggests, a fulfillment center is where a company’s orders are filled and shipped to customers as quickly as possible. The connotation behind fulfillment centers is that they only fill and ship orders to customers, and public warehouses only store inventory for a company. However, public warehouses and fulfillment centers can both store and ship products, and you can definitely find a public warehouse that will provide your company with fulfillment services.

What Types of Services Do Public Warehouses Provide?

Public warehouses offer a variety of services to help businesses with storage and shipping needs. These services include:

  • Storage and inventory management
  • Freight consolidation
  • Picking and packing
  • Order fulfillment including EDI processing
  • Import/export documentation
  • Performance reports
  • Hi-cube racking
  • Floor stacking
  • In-house trucking
  • Technology integration
  • Kitting, labeling, quality control inspections, and return management

Four Benefits of Using Public Warehouses for Storage & Shipping

Using public warehouses for storage and shipping offers several advantages over other storage options:

  1. Flexibility of location – Public warehouses provide flexibility in terms of location. You can choose a public warehouse in an ideal area that is best meets your business needs. For quick shipping, select a warehouse close to your customer base. Many public warehousing companies have networks across the country that allow you to move your goods to different locations as needed.
  2. Flexibility for space – Public warehouses also provide flexibility regarding the amount of space and the duration that you’re going to need to store your products. If your business grows and needs more storage, you can revisit your SLA and upgrade your storage plan to accommodate this growth. A good warehouse management system (WMS) will be able to track your growth and anticipate when you might want to upgrade your space. You can also negotiate the length of time in which you will be utilizing the storage space. Most public warehousing companies employ contracts that renew every 30 days, so you can easily renegotiate your contract if the need arises. Also, due to the standard short lengths of these contracts, public warehouses provide flexibility to terminate your contract on short notice.
  3. Lower Costs – Public warehouses helps you to save on costs that might be too high for an SMB. They provide the manpower, technology, and resources needed to run the facility, which is much more cost-effective than building and running your own private warehouse. Maintaining a private warehouse can quickly become expensive—from acquiring the space, building the warehouse if needed, hiring employees to run the facility, and equipping the correct and best technology. It all adds up. Since public warehouses are renting space to many different customers, they can afford the costs needed to run the warehouse, taking that burden off you so that you can focus on running and growing your business.
  4. Improved Technology – Public warehouses can provide you with the best technology needed to give your business an extra edge that, as an SMB, might not be attainable otherwise. Most public warehousing companies offer inventory control software that allows you to track and manage your product inventory. If you already have software that you are using, some public warehousing companies can integrate that software into their technology.

Benefits of public warehousing: cost savings, expertise, market coverage, scalability, fewer errors, customer satisfaction, and less management effort

Along with these benefits, public warehousing companies also utilize state-of-the-art organization software and strategies, are fully staffed with dedicated, trained employees, and provide a secure place to store inventory. Overall, it’s safe to say that the ultimate benefit of using a public warehouse facility to store your products is the added freedom they provide you to focus on your business by taking the weight of storage and management off your shoulders.

Types of Public Warehouses

Public warehouses come in several types, each serving specific storage needs and industries. The following at the seven most common types of public warehouses.

General Merchandise Warehouses

General merchandise warehouses are the most common type of public warehouse and are used to store a several of goods that don’t require special handling conditions, such as garments, books, and furniture. These warehouses have a basic storage set-up with standard shelves and pallet systems, which makes them cost-effective and requires minimal investment, helping businesses save money.

Refrigerated Warehouses

Refrigerated warehouses, also known as cold storage warehouses, are designed to store perishable goods like fresh produce, frozen foods, and ice cream. These warehouses use advanced refrigeration systems to maintain specific temperature and humidity levels to make sure products remain fresh and prevent spoilage.

Climate-Controlled Warehouses

Climate-controlled warehouses maintain specific temperature and humidity levels. These facilities are ideal for storing items that can be damaged by changes in the environment such as electronics, artwork, pharmaceuticals, and high-value perishables. They use advanced HVAC systems for optimal storage conditions.

Bonded Warehouses

Bonded warehouses are storage facilities owned and managed by the government, where imported goods are kept without the payment of duties or taxes until they are ready to be re-exported or released for sale within the country. They are especially useful for storing expensive or high-tax items and can be repackaged or labeled while under customs control in the warehouse.

Hazardous Materials Warehouses

Hazardous materials warehouses, also known as HazMat warehouses, are specialized storage facilities designed to handle and store dangerous substances like gases, chemicals, flammable liquids, radioactive substances, and biological agents. These facilities comply with strict safety regulations and have specialized safety systems, including climate control, fire suppression, ventilation, and secondary containment to prevent spills and accidents.

Cross-Docking Warehouses

Cross-docking warehouses facilitate the quick transfer of goods from inbound to outbound transportation with minimal storage time. This type of warehousing helps reduce inventory holding costs and speeds up the distribution process. In a cross-docking operation, items are unloaded from delivery trucks, sorted, and then immediately loaded onto other trucks for shipment to stores or distribution centers. These warehouses are particularly ideal for seasonal items and high-demand products that need to be delivered quickly.

Agricultural Warehouses

Agricultural warehouses provide storage solutions for farm products like grains, seeds, and fertilizers. These facilities feature specialized equipment and systems for ventilation, pest control, and temperature regulation to protect the stored products. This type of warehousing is ideal for farmers and agribusinesses.

What Types of Companies Should Use a Public Warehousing Company?

Public warehouses are great for any company that doesn’t want to bear the overhead cost of building and maintaining their own private warehouse. By using a public warehouse, your company can save on the resources and manpower that would be used to run and manage a private company warehouse.

Public warehouses are particularly beneficial for small to medium-sized businesses since they allow you the flexibility to choose the size of space you need and the ideal location to store your stock. It is often impractical for an SMB to build its own private warehouse, so a public warehouse will be your best option to store, manage, and ship your inventory. This helps SMBs stay competitive with larger businesses that can afford their own private company warehouses. With the added benefits of inventory tracking and management technology, SMBs can flourish by taking advantage of the services provided by a public warehousing company.

Seasonal businesses also benefit from using public warehouse storage. Halloween supply stores are a good example of this type of business. These businesses can store their inventory in a public warehouse until it’s time to reopen their physical stores. Since they only have to pay for the public warehouse storage service for the period of time they are actively using it, seasonal businesses can conveniently save on storage costs.

Public warehouse storage is also convenient for businesses that have a problem with overflow inventory. They might have run out of space in their own warehouses and need a place to put the extra inventory. Public warehouses offer the perfect solution for this short-term problem.

How Much do Public Warehousing Companies Cost?

Public warehousing costs can vary based on different factors. First and foremost, the cost will depend on how the warehouse prices and measures the storage space they rent. Storage costs may be determined by square footage used or by pallet. Per our research for 2024, the price per square foot for storage is between $8-$9 (average is $8.31) and around $20 per pallet (average is $20.37).

Public warehouse cost savings: variable storage fees, better freight rates due to 3PL aggregation, and lower pick and pack fees.

However, it is important to remember that you are not only paying for the space but also any added benefits and services that the public warehousing company may provide. Picking and packing, inventory tracking and management, shipping services, and climate control can contribute to additional costs in your contract.

Several key trends are changing how public warehouses operate in 2024. These changes are driven by technological advancements, changing consumer behaviors, and the need for more efficient and eco-friendly operations.

Automation and Robotics

Public warehouses in 2024 are using advanced automation technology for efficiency and adaptability such as Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs). AMR uses AI and machine learning to navigate spaces and perform tasks independently, while AGV follow fixed paths to transport goods. This cuts labor costs and increases safety.

The use of 5G tech improves warehouse automation with fast, real-time communication between robots, sensors, and operators. Robots with AI are used more in picking and packing, improving accuracy and reducing errors. For example, the Boston Dynamics’ Stretch robot handles over 800 boxes an hour.

Additionally, drones are used for inventory management and moving small items, saving time and improving accuracy in public warehouses.

Wearable Technology

Devices like wrist scanners, voice-control headsets, and smart glasses help workers find items faster and reduce mistakes. These wearables help workers find items quickly, reduce errors, and speed up the picking process.

Health and safety wearables, like exoskeletons, support the back during lifting to prevent injuries. Smart glasses provide real-time about the item, so workers don’t need to handle devices manually. Voice-picking technology lets workers get instructions through voice commands, keeping their hands and eyes free.

RFID Warehouse Management System

RFID helps public warehouses with better space utilization, faster retrieval times, and fewer mistakes. Using RFID with indoor positioning systems lets warehouses precisely track items and personnel, optimizing inventory placement, order fulfillment, and safety by quickly locating people and assets during emergencies.

RFID systems also automate check-ins and check-outs, improving resource use, reducing downtime, and securing accurate records and compliance. Wearable RFID devices track worker movements by tracking employee location, preventing unauthorized access, and alerting managers to potential hazards.

Sustainability and Green Warehousing

Public warehouses use more renewable energy, such as solar and wind power, to cut their carbon footprint and save on energy costs. New warehouse designs feature sustainable materials, natural lighting, better insulation, and energy-efficient HVAC systems to lower environmental impact and costs.

They’re also upgrading transportation routes, using electric or hybrid vehicles, and planning logistics to cut greenhouse gas emissions. Plus, warehouses are switching to sustainable packaging with recyclable and biodegradable materials to meet consumer demand for eco-friendly practices.

E-commerce Fulfillment

Retailers are setting up micro-distribution centers in existing stores to get inventory closer to customers for faster delivery, driven by the need for quick delivery and a shift to suburban living. Small and medium-sized businesses (SMEs) are using third-party logistics (3PL) providers for efficient e-commerce fulfillment services so they can focus on product development. Large retailers are expanding with big, automated centers and micro-distribution hubs for next-day and same-day delivery.

Multi-channel fulfillment options like BOPIS (Buy Online, Pick Up In-Store) are becoming more popular, offering flexible choices to consumers. Additionally, nano-distribution centers and small urban warehouses starting at 250 square feet help with quick deliveries by being close to customers for delivery efficiency and customer satisfaction.

Five Key Features to Look for in a Public Warehouse Space

Since there are so many public warehousing companies out there, you’re going to need to first evaluate what you’re looking for in public warehouse storage and shipping and then seek out a public warehouse facility that matches those needs. To begin this process, there are some important things to consider when looking at public warehousing companies:

  1. Location – Choose a public warehouse facility in the best location for your business. Consider every step in your business’s logistics process. Ask yourself these questions: Where is the demand for your product coming from? Are your customers mostly located in an urban or rural area? Due to the growth of eCommerce, demand can generally come from all over the country or even globally. It is probably best to choose a public warehouse that is closest to your client base for faster shipping. However, if you would rather store your inventory closer to the manufacturing plant, you’ll want to look for a public warehouse that is closer to the plant location. Another option may be to find a public warehouse close to your company’s headquarters. You should also check if the public warehouse company is a part of a network of warehouses so that you can have more flexibility when it comes to your storage location and be connected to national or even global supply chain management services.
  2. Extra Benefits – While, of course, the main goal is to find storage space, you should also look to see what added benefits a public warehouse company might offer. You probably want to find a public warehousing company that provides shipping, fulfillment, or pick and pack services. Some public warehousing companies provide quality control or inventory reporting and counting. Finding a public warehousing company that can manage each step in the supply chain, you can save costs and ensure customer satisfaction.
  3. Programing & Technology – Public warehousing companies use technology to track and manage your inventory, so you can focus on running your business. They should integrate data from the warehouse management system, order management system, and transportation management system. This way, you don’t have to deal with separate pieces of data. By allowing you to look at the data as a whole, you can optimize each step of your logistics process and reduce risks along the way. The data should help you and the public warehousing company predict trends and keep track of shelf space, and it should also be compatible with your ERP system.
  4. Flexibility – One advantage you might look for in terms of flexibility is the ability to access the facility, staff, and technology on short notice. You should also be proactively thinking about the future of your business and thus making sure you have the ability to expand your storage space and upgrade technology in the future. The public warehousing company that you end up choosing should provide a plan for potential growth in your SLA.
  5. Quality and Capabilities – It is also extremely important that you use a public warehousing provider that you can trust. After all, you’re placing a sizable component of your business’s success in this company’s hands. The public warehousing company you choose should have excellent customer service, the capability to efficiently store your inventory, and provide you with the flexibility and innovation you require.

Like with any purchase, you must conduct some research before you commit to a public warehouse space. A smart move would be to tour the facility and see if they have exactly what you want. Talking to team members and management and assessing customer reviews will also help you solidify your decision. It is also highly recommended that you speak with multiple vendors so that you can compare the various options. By looking at multiple companies, you’ll be able to see the differences between various companies and negotiate better pricing due to this knowledge. Of course, we don’t recommend that you make a decision based upon price alone, but rather take into consideration both a company’s capabilities in addition to pricing.

What are the Common Challenges to Finding the Right Public Warehouse?

Finding the right public warehouse can be tough. You might have recently spent days searching for warehouses, only to find that they don’t align with your business needs. Perhaps you’ve already partnered with a warehouse, only to encounter numerous issues that don’t meet your expectations. We know it’s hard to find the perfect fit. Many businesses face similar struggles before they find the right public warehouse with our help. Here are some other common issues you might be experiencing right now:

  • Location Issues: You might have found a warehouse that looks perfect with great facilities, but it’s too far from your main delivery routes, leading to higher shipping costs and delayed deliveries.
  • Space Availability: Your products are big and need a lot of space, but many warehouses you come across are either too small or already fully booked.
  • Services Offered: You need special packaging services or climate control for your products, but the warehouse you’re considering doesn’t provide these services. This mismatch can lead to product damage or delays.
  • Reputation and Reliability: You might be experiencing late deliveries with the warehouse you chose and it damages your business reputation and causes customer dissatisfaction.
  • Technology: The warehouse you are considering may lack modern technology, such as inventory management systems or real-time tracking. This can make it harder to keep track of your stock and manage your logistics efficiently.

Are you facing these issues while searching for the right public warehouse? If so, it’s time to address them and start looking for solutions with us.

How Warehousingandfulfillment.com Can Help You Find the Best Public Warehouse

While beginning this process may seem daunting, Warehousingandfullfillment.com can help make it much easier on you. We have a very unique approach to finding you the best public warehouse.

First and foremost, all our employees come from the warehousing industry, so you know that we have the thorough background and knowledge that will help you make the most informed decision. We also strive to give the most honest assessments of the warehousing companies in our catalog. We assess many components of each public warehousing company: their capabilities and services, financial backgrounds, and their performance metrics. After evaluating each of these elements, we are able to give you well-informed suggestions as to which company will be the best fit for your business.

Along with our own assessments, we also carefully consider the feedback of customers who have used the services provided by the public warehousing company. By doing so, we get a better idea of the customer experience provided by the warehouses and can thoroughly assess the warehouses in our network. That being said, if we find that a provider does not meet our high standards of service, we remove them from our network.

We hold the warehousing companies in our network to a very high standard. We want to confidently connect seekers of public warehouse space to the public warehouse company that best meets their needs. For this reason, it is free for you to get warehouse recommendations. Warehouses pay us a small referral fee of less than $50 so that we can connect them to you, which helps us stay unbiased and allows us to provide this service to you for free. There are no commission involved, you pay nothing, and there is nothing that impacts your pricing.

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FAQ’s about Public Warehousing

Who owns public warehouses?

A public warehouse is a warehouse individually owned by a third-party company and rented out to various clients.

Do public warehouses provide shipping and transportation services?

Yes, some public warehousing companies do provide shipping and transportation services. If this is a service you are interested in, make sure that the public warehouses you’re looking at provide this service and include it in your SLA.

What is an SLA?

An SLA, or service level agreement, is the part of a fulfillment agreement contract that states the services the company will be providing and how those services are measured. The SLA should also include what remedies the company will provide if the services are not fulfilled the standards of the contract.

What is a 3PL?

A 3PL, 3PL warehouse or third-party logistics provider, is a company that can help you get your product from the manufacturing stage all the way to the customer. This process can have many steps, and a 3PL can help you manage this process so that it becomes much easier and smoother to get your product to your customers.

Are 3PLs different from public warehouses?

Yes, slightly. 3PLs deal with the many stages of the supply chain process, while public warehouses specialize in storage. However, 3PLs and public warehouses can work together to ensure that your business runs smoothly.

What are pick & pack services?

Pick and pack fulfillment is a means of fulfilling a more complex order that involves pieces of inventory that may be stored in different locations and need to be pulled individually and packed together. This method of order fulfillment requires different strategies to keep it cost-effective and efficient. It may also require multiple employees and intricate computer software programs and tracking systems to complete smoothly.

Where are public warehouses located?

There are public warehouses located all over the nation and across the globe. A public warehousing company may have a network of public warehouses in various locations across the country that allow you to move your inventory to the location that best suits your needs.

What is a contract warehouse?

A contract warehouse is similar to a public warehouse in that it fulfills a client’s need for inventory storage. However, the difference between contract warehouses and public warehouses is that a single contract warehouse only serves one client and focuses more on long-term storage. The space and costs are usually fixed with contract warehouses, and they don’t offer the same flexibility that public warehouses provide.

Do I need to sign a long-term contract?

No, you don’t need to sign a long-term contract for public warehouse services. Public warehouses usually offer flexible contracts, often on a month-to-month basis, so businesses can change their storage needs without committing for a long time.

How do public warehouses handle security?

Public warehouses handle security by using 24/7 surveillance systems, access control systems, and regular audits. They have trained security personnel and advanced technology to watch over and protect items from theft and damage.

What should I look for in a public warehouse service agreement?

When reviewing a public warehouse service agreement, look for clear terms regarding pricing, storage conditions, insurance coverage and liability terms. You also have to check the agreement’s flexibility, the range of services offered, and any additional fees for optional services.

What is the difference between a private bonded warehouse and a public bonded warehouse?

A private bonded warehouse is owned by a private company and stores its own goods for import and export. A public bonded warehouse is government-owned and stores goods from multiple businesses, which allows them to delay customs duties until the goods are sold or removed.

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