In this article, learn about:
Types of warehouses
Key factors to look for in choosing a warehouse partner
Today’s most innovative platforms
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A warehouse isn’t just a place for storage. It’s where inventory, fulfillment, and customer expectations all come together. The right warehousing partner keeps products safe, ensures orders move smoothly, and supports growth. The wrong partner? Late deliveries, hidden fees, angry customers, and a mountain of chargebacks.
Luckily, suppliers don’t have to gamble on warehouse decisions. By understanding the types of warehouses, the key factors to look for, and exploring today’s most innovative platforms (like Ware2Go, Taylor Warehousing and Distribution, and Flexe), suppliers can transform warehousing from a black hole of fees into a competitive advantage.
Types of Warehouses
The International Warehouse Logistics Association (IWLA) formerly known as the American Warehouse Association (AWA), offers advocacy, education, networking, and business services to help members navigate the complicated terrain. While they do not directly categorize warehouses, it is widely accepted that the different types fall into five main groups:
Public Warehouses
Flexible, short-term storage with shared space. Great for suppliers with seasonal spikes, unpredictable demand, or low volume. Public warehouses are typically owned and operated by third-party logistics providers and are often the most affordable way to manage overflow or test a new market without a long-term commitment.
Example: Distribution Centers, eCommerce partners such as eBay and Alibaba.
Private Warehouses
Owned or leased by one company. Best for suppliers with steady and consistent sales volumes who want full control over operations. Private warehouses are common within industries where compliance, quality control, and/or security are non-negotiable.
Example: Amazon, Winchester, IKEA, and Walmart.
Contract Warehouses
Third-party logistics providers (3PLs) lease dedicated space and typically offer services such as packaging, labeling, kitting, and returns management. Suppliers can benefit from reliable storage, professional staff, and scalable services without the capital expense of warehouse ownership.
Related Reading: Advantages of Hiring a Third Party Logistics Provider
Specialized Warehouses
Some products require more than shelf space. Specialized warehouses cover compliance-heavy products like:
Cold storage for perishable foods or pharmaceuticals
Hazmat facilities for flammables like paint or aerosols
Bonded warehouses for shipments awaiting customs clearance
eCommerce fulfillment centers designed for high-volume, automated services
This is the category that Smart Warehouses fall into as well. Smart warehouses utilize technology to optimize operations, enhance efficiency, and improve safety. They integrate automation, robotics, and data-driven systems to streamline processes like inventory management, order fulfillment, and material handling.
Examples: Sherwin-Williams, FedEx, Manitou Group, and Microsoft.
On Demand Warehouses
This is one of the fastest-growing categories. Platforms connect suppliers to open space across the nationwide network of warehouses. This model is ideal for seasonal sales, launching products, or scaling quickly without locking into long contracts.
Examples: Ware2Go, Flexe, Stord, and Flowspace.
Key Factors in Choosing a Warehouse Partner
Warehouse Location
Strategic placement saves time and money for suppliers. A midwest hub may cut transit times to both coasts, while a port location streamlines imports and customs. Suppliers should map shipping zones and model transportation costs before choosing.
Warehouse Management System
Visibility is critical. A warehouse management system (WMS) should integrate with EDI for retailer compliance, as well as ecommerce platforms like Shopify, Amazon, and BigCommerce. Real-time visibility prevents out-of-stock items and ensures that suppliers can track every pallet and order.
Pro tip: Don’t just ask if a warehouse uses WMS—ask for a demo showing how supplier-specific data flows through the system.
Related Reading: EDI 945: Warehouse Shipping Advice
Scalability
Suppliers should be sure to confirm whether a warehouse partner can handle growth. This often means providing surge space for holiday peaks, supporting expansion into new product categories, and offering flexible contracts for scaling up or down.
Compliance
Late deliveries, incorrect pallet arrangements, or missing documents can result in costly retailer chargebacks. Warehouses should have proven processes for auditing shipments, maintaining labeling accuracy, and following retailer routing guides.
Related Reading: Distributor Compliance Best Practices
Transparent Warehouse Costs
It is a common story: suppliers sign a contract with a warehouse for an agreed amount based on the services provided. But when the invoice is sent, it is full of extras and add-ons which nearly double the amount owed.
Suppliers should insist on itemized invoices. Hidden fees often include pallet moves, labeling, or minimum storage charges. A detailed rate card makes it easier to compare partners and audit monthly invoices.
Financial Partnership
A warehouse relationship goes both ways. Suppliers who pay invoices on time and in full often receive higher service priority, especially during peak seasons. Timely payments build trust and strengthen partnerships.
Emerging Technologies
Never has there been such massive growth within the logistics industry as there is now. With robotics, AI-powered forecasting, and IoT sensors (for temperature, humidity, and real-time tracking) suppliers have more options and opportunities than ever before.
Environmental Concerns
Many retailers are requiring suppliers to adhere to sustainability standards as part of their compliance expectations. When deciding on a warehouse partner be sure to take their Environmental, Social, and Governance (ESG) framework into consideration. Solar energy, EV fleets, and reduced packaging waste could add a future-facing edge.
Insurance
No one likes to consider the possibilities of a circumstance in which inventory is ruined. However, it is in the best interest of suppliers to review insurance coverage within the partnership agreement. Suppliers should ask about—fire, flood, theft, damage during handling, and even cyber risks if the warehouse manages sensitive data.
It is helpful to know who is liable at each stage—does coverage kick in when goods are on the warehouse floor, in transit between facilities, or only under certain conditions? Some warehouses carry blanket coverage, but suppliers may need to supplement with their own policy to close gaps.
The True Costs of Warehousing
One of the most common mistakes suppliers make is assuming the quoted “per pallet, per month” rate tells the whole story. In reality, warehouse invoices often include a laundry list of line items that can catch suppliers off guard. Beyond storage, common hidden fees include:
Inbound handling fees for unloading trucks, counting product, or quality checks
Pallet fees are charged every time inventory is shifted within the facility
Special labeling or reticketing fees for retailer specific labels
Shrink wrap, packaging or restocking fees tied to returns or reconfigurations
Minimum storage commitments even if suppliers don’t need the space
These charges aren’t inherently bad—it’s how warehouses cover labor and resources. However, suppliers should expect transparency up front. A good partner will share a detailed rate card and walk through real-world invoice samples. Comparing these across providers makes it easier to project true landed costs and avoid billing surprises down the line.
Where Suppliers Can find Reliable Warehouse Partners
Ware2Go (UPS backed On-Demand Fulfillment)
Ware2Go warehouse locations are a part of a nationwide network using a pay-as-you-go model. The platform offers scalability, integration with e-commerce tools and ERPs, as well as visibility across the entire network. Suppliers often use Ware2Go to manage seasonal surges without signing lengthy contracts.
Flexe
Flexe offers access to hundreds of 3PLs and fulfillment centers. Suppliers use it to test new geographic regions, add capacity quickly, or manage short-term contracts without high upfront costs. It’s particularly useful for ecommerce and Fast-Moving Consumer Goods (FMCG).
Load Boards
While not traditional warehouses, load boards help suppliers connect with carriers who may offer cross-docking, short-term storage, and transfer. This dual approach solves freight and warehousing challenges together. Load boards are often cost effective.
Examples include: DAT, TruckSmarter, 123LoadBoard
Flowspace
Flowspace offers suppliers an opportunity to scale up or down as needed. With seasonal surges and channel mix changes, 3PLs can struggle to keep up. This option can be a saving grace for those that are scaling fast.
Tips for Suppliers to Evaluate a Warehouse Partner
Visit the Warehouse: ten minutes on the warehouse floor says more than a sales pitch ever will. Look for cleanliness, organization, and how staff handle products and other team members.
Ask for KPIs: order accuracy, on-time shipments, and inventory accuracy should be tracked and reported regularly.
Check Former Clients: past customers often provide honest insight into strengths and weaknesses.
Audit Invoices: regular billing reviews help suppliers catch unnecessary charges before they add up.
Look for Add-On Services: value-added services like kitting, labeling, returns processing, or FBA prep can save suppliers time and reduce costs.
Related Reading: Visibility for Suppliers and CPGs
Warehouse Partnerships Should Be Strategic
The best warehousing relationships extend far beyond space rental. They function as a real extension of a supplier's business. A strong partnership protects products, reduces supply chain risks, and improves compliance with retailers.
Whether suppliers choose a traditional 3PL, an on-demand provider like Flexe, or a load board connection—the goal is the same: reliable, scalable, and transparent warehousing solutions that strengthen the business.
Warehousing impacts every part of the supply chain. Late deliveries, damaged goods, or stockouts don’t just cost money, they harm customer trust and brand loyalty. Suppliers who carefully evaluate locations, technology, scalability, and compliance are better positioned for long-term success and growth. With today’s options—ranging from 3PL warehouse partners to on-demand fulfillment through providers like Ware2Go and FlowSpace—suppliers have more choices than ever before. The right warehousing partner shouldn’t feel like a storage unit. It should feel like a strategy.
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