A “multi-user warehouse (MUW)” is a warehouse where multiple end customers share one warehouse or distribution center. At Costo Intralogistics, we notice an increasing demand from logistics service providers for this shared form of warehouse logistics. There are two reasons for this: the contract duration between the logistics service provider and the end customer is getting longer and longer and flexible intralogistics solutions improve the possibilities for multi-user warehousing.

In this article, you can read more about the benefits of multi-user warehousing, the impact of longer-term contracts and their end customer, and the impact of smarter intralogistics.

Why are more and more logistics service providers opting for a multi-user warehouse?

In a multi-user warehouse, the inventory of multiple customers is combined; for example, the bicycle parts of an online bicycle store are next to the rakes of a garden store. This form of intralogistics offers several advantages:

  • Smaller retailers also benefit from the automation advantages of a large warehouse
  • If the retailer grows or shrinks, this form of warehousing is more flexible
  • The cost of warehousing for retailers is reduced
  • Order picking is more precise due to smart software

In general, the flexibility, cost reduction and quality of order picking is the deciding factor for multi-user warehousing.

Long-term cooperation for better ROI

The duration of contracts between the end customer and the logistics service provider has increased in recent years. In the past, a term of three years was common; today it is increasingly increasing to around 10 years. As the contract duration increases, it becomes more attractive to invest in more extensive warehouse automation combined with smart warehouse software. This has everything to do with ROI; a longer contract gives more room to recoup the investment.

Higher complexity made easier by smart intralogistics

Multiple carriers, a high diversity of items and diverse processes in order picking: it seems like a logistics nightmare for the warehouse manager. The solution is within reach. After all, by deploying smart software, this type of warehouse logistics becomes a lot easier. The “Warehouse Management System” (WMS) takes care of the thinking and controls the hardware. Because the WMS calculates the process in milliseconds, all items are in the right place in the warehouse at the right time.
In short: an optimal intralogistics process through cooperation between hardware and software to serve different end customers in one warehouse!

Costo Intralogistics, the specialist in automating intralogistics

Curious about the possibilities for multi-user warehousing for your warehouse? Or do you doubt which automation solution is right for your warehouse? Our experienced team of experts is ready for you! We offer an appropriate solution specifically tailored to the challenges of your unique warehouse.

Would you like to receive personal automation advice? Mail to gorinchem@costo-group.com or call us at +(31) 183-745045.