When the internet came along, it changed the way we shop, but the logistics networks that support it, failed to change with it. Leaving retailers and brands with solutions that can’t keep up with the demands of today. The solution? On-demand warehousing. But, what is on-demand warehousing compared to traditional warehousing?
Manually search requires time and resources to source and onboard with new 3PL provider: i.e. steep startup costs; months-long implementation times. Besides, you have to repeat the manual search if your expanding your business into new markets or if you add (new) warehouse providers.
Search is simplified and more extensive. For instance: Choose from a list of vetted providers that match your project scope and requirements. By comparison with traditional warehousing you have no startup costs and you can get started in weeks, not months. With standardized technology, terms, and billing you can easily add more warehouse locations.
Disconnected technology: Because you implement and manage multiple technology systems across different 3PL providers, you don’t have a view of aggregate data across the network.
Standardized technology: An unified technology platform across providers centralizes visibility and control across your network. I.e. real-time dashboards and detailed reporting.
Expensive and rigid terms require fixed investments and steep startup costs. Besides, unused capacity and services are a sunk cost. In traditional warehousing, terms and contracting vary from provider to provider.
Pay-as-you-go model, simply known as pay-per-use. You only pay for the space and services you use. This consists no long-term leases or startup costs and above all you have the flexibility to ramp up or down depending on your business needs.
Growth is limited by network locations and capabilities. For instance: service levels drop when volumes increase. Furthermore, there is a lack of expertise in supporting new channels
A flexible, expansive network includes every major metro area with a broad range of capabilities. Solutions for overflow, retail distribution, and eCommerce fulfillment. Always access to a team of logistics experts
You’ve seen how on-demand warehousing is different than traditional solutions. Now, let’s explore how it solves some of the biggest logistics challenges retailers and brands face. Read more about these challenges here.