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Contract warehousing vs public warehousing in Chicago

by
Patrick Greene


---Contract Warehousing---

Contract warehouses are businesses that handle the shipping, receiving, and storage products on a contract basis. Contract warehouses generally require a client to commit to a specific period of time (generally in years) for the services. Contracts may or may not require clients to purchase or subsidize storage and material-handling equipment. Fees for contract warehouses may be transaction and storage based, fixed, cost plus, or any combination. In contract warehousing, business is intended to be on a more long term basis compared to that of a public warehouse. When utilizing a contract warehouse, prices are generally cheaper as the costs per unit are cheaper. Contract warehousing also allow for better normal business expansion and/or contraction in a flexible, cost efficient manner. This option is not optimal for short term activities. For example, a business in Chicago, Illinois that needs its products stored in a warehouse for an extended period of time, a contract warehouse would be used. That business in Chicago would then be able to store is products in one facility, not having to worry about them, and then be able to distribute them to wherever in the Midwest or whatever destination it may be

---Public Warehousing---
Public warehouses are businesses that provide short-term (in certain cases long-term) storage to a variety of businesses, usually on a month-to-month basis. A public warehouse will generally use their own equipment and staff, however, agreements may be made where the client either buys or subsidizes equipment. Public warehouse fees are usually a combination of storage fees (per pallet or actual sq. footage) and transaction fees (inbound and outbound). Public warehouses are most often used to supplement space requirements of a private warehouse. This form of business is generally used for short-run activities. A person or business may only need temporary storage of something. When they are no longer in need of the warehouse they can pull out without and issues with having a contract. For example, a person living in the city of Chicago is in need of a warehouse to store their car. They would have to pay for the space they will be taking up and then the transportation fee. When that person from Chicago decides to leave the city and wants their car back, they are able to take it whenever without the hassle of contracts.

Neither option is better than the other; it all depends on your needs or that of your business. Contract or public warehouses are optimal in the Chicagoland area. People or businesses may need short term or long term storage. Understanding the differences between the two will help you in deciding which service you need.

For additional information on “Benefits of Using one Warehouse Company in Chicago,” visit our website www.publicwarehousingchicago.com or contact us via email mike@morandist.com or telephone 847-439-0000.




Moran Distribution Centers facilities are located in city of Chicago area, Illinois, midwestern, United States.

Services include contract warehousing, public warehousing, pick n pack, distribution and consolidation, order fulfillment and parcel distribution. Specialty warehousing is provided for paper products, auto parts, retail, electronics and consumer products.


Public Warehousing | Contract Warehousing | Pick N Pack | Distribution/Consolidation
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Chicago Public And Contract Warehousing Locations At
Elk Grove Village, Il. and Bensenville, Il.

(312) 328-0254

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