What are the benefits of operational co-working in contract logistics?
Are you worried that running your own warehouse will eat into your budget? Does a lack of flexibility keep you awake at night during the busiest times of the year? Coworking provides a solution to both these problems. And many more besides. In this article, we’ll explain in detail – drawing on our own experience – what the benefits of operational coworking in contract logistics are.
What is operational co-working in the supply chain?
Operational co-working is simply the sharing of logistics operations. But it’s not just about renting an office. In this case, you share extensive operational resources – such as warehouses, loading bays, IT platforms and entire teams of experts – with several other companies within a single network.
Thanks to such extensive networks, your company gains unrestricted access to global operations without having to build its own cumbersome infrastructure. Sounds brilliant, doesn’t it? So let’s take a closer look at the benefits of operational co-working.
What are the benefits of operational co-working in contract logistics?
The decision to adopt a shared model will relieve you of the burden of carrying out all your company’s operations on your own. What else? Discover the benefits of operational co-working in contract logistics.
1. Reduced warehousing costs
If you want to go on a trip out of town once a month, you don’t buy a whole train or build it yourself. Instead, you buy a ticket and use a ready-made solution, saving money.
The same principle applies to optimising warehousing costs. The same principle applies to optimising warehousing costs. According to ParcelPlanet, sharing space, docks and staff will reduce your expenses by 20–35%.
You don’t invest in expensive infrastructure; you simply pay for what you use at any given time. That’s why working within a shared warehouse takes the financial strain off you by sharing docks.
2. Operational flexibility and scalability (without capital investment)
When sales suddenly skyrocket several-fold, often overnight, trying to cope with this using your own resources is costly and operationally risky. And it’s often simply impossible, because the infrastructure itself cannot cope
In a shared-use model, the logistics service provider already has the infrastructure and team in place, so you can quickly increase your space, the number of docks and staff without investing in a new warehouse. You sign flexible contracts, meaning that once the peak season is over, you can scale back and pay only for the resources you use.
You operate within someone else’s infrastructure, safe in the knowledge that, even in the event of a flood of orders, the vast majority will leave the warehouse on time.
3. Access to advanced technology and know-how without building your own IT team
What is another benefit of operational co-working in contract logistics? You can immediately make use of powerful WMS platforms, RFID goods tracking technology or artificial intelligence to help plan routes.
Thanks to this technology, you have a perfect overview of your goods and comprehensive real-time analytics. According to the Work at Thrive publication “Coworking for Logistics Professionals: What to Know”, specialised coworking spaces offer professional management platforms that streamline day-to-day operations.
4. New business partnerships
When working side by side with others, you start by exchanging a smile, and before you know it… contracts. A shared workspace provides an excellent environment for building business relationships and developing new structures.
As Join-Portal emphasises, sharing space with other companies opens up opportunities for networking. You can collaborate with groups using the same warehouse, creating valuable industry connections. This gives small and medium-sized enterprises the chance to build a community and gain a competitive edge through shared experiences.
Relationships are a major benefit of operational co-working in contract logistics. You never know when your neighbour at the loading bay might need someone just like you.
5. Improving supply chain efficiency and visibility
When you operate within a large organisation based on shared services, every procedure is fine-tuned to perfection. You optimise resource utilisation, measurably reduce order fulfilment times, increase operational efficiency and can set higher SLA standards in contracts.
This is confirmed by the publication “Collaborative Logistics: An Innovative Strategy to Address Future Logistics Challenges”. The authors – Gabor Nagu and Szabolcs Szentesi – point out that shared logistics increases the efficiency of supply chain operations, whilst reducing the risk of disruptions through better resource utilisation, operational flexibility and shared resilience to disruptions.
Smooth operations and predictability are undoubted benefits of operational co-working in contract logistics.
6. Sustainability and a lower carbon footprint
What if two companies are sending shipments from the same city in the same direction? These orders can be consolidated, thereby saving fuel, improving load efficiency and thus reducing the carbon footprint.
Organising consolidated deliveries improves load factors, which translates into fewer smoking exhaust pipes on the road. Research by the WBCSD has precisely quantified the benefits of this process for the planet and for business. Let’s take a look:
- transport cost savings of 15–20 per cent (and in more integrated models, even over 20 per cent),
- a reduction in carbon dioxide emissions of 15–30 per cent (depending on the scale of collaboration and the technologies used).
Care for the environment, and incidentally a positive image for your brand, are further benefits of operational co-working.
7. Greater resilience to crises
As Warren Buffett said: “Don’t put all your eggs in one basket”. How does this apply in the context of logistics?
If your sole carrier goes out of business, your operations grind to a halt and you incur losses. With an extensive network, however, you distribute tasks amongst multiple entities operating on a single logistics platform. You diversify your suppliers and cease to be dependent on a single operator.
Secure outsourcing to multiple external providers is nothing other than risk management and business scaling. Your operations do not grind to a halt for even an hour – these are the valuable benefits of operational co-working in contract logistics, which you will appreciate at the first major market downturn.
8. Freeing up time for business development
Inventory management is an extremely time-consuming task. Entrust it to trusted operators, and they will take this burden off your shoulders. You, in turn, can focus on growing your business.
Operational co-working in contract logistics guarantees a competitive edge and a significant reduction in expenditure.
Frequently Asked Questions (FAQ) about the benefits of operational co-working in contract logistics
1. Is operational co-working only beneficial for the e-commerce sector?
No. Although online retailers benefit from such advantages, this model also works in the food industry, the automotive sector and even the pharmaceutical industry.
2. Where do I start when sharing operations within the supply chain?
Start by choosing a suitable, verified operator. Look for one through networking platforms, for example via WCAworld.
3. Is sharing a warehouse with other companies safe for my goods?
Yes. The operator’s credibility and reliability are confirmed by the EU AEO certificate – this is a financial guarantee that your partner meets stringent customs and business requirements. The physical security of your goods, meanwhile, is ensured by access controls, CCTV monitoring, cargo insurance and precise SLAs backed by KPIs.
Your stress about maintaining warehouse facilities can be a thing of the past. Try out the shared business model. And if you’re looking for an experienced and trusted logistics partner, get in touch with us. We’ll set up a transparent and secure supply chain for you that will take your business wherever you want it to go.