On-Demand Warehousing And The Hidden Potential

E-commerce has reached its pinnacle with the help of better access to the internet and technology. With this, the number of companies establishing online has seen a boost. But, the fact that running an e-commerce business needs proper strategies and planning – should not be ignored. Various aspects are to be kept in mind for an e-business to reach its success. One of the main aspects is order fulfilment that directly impacts customer approval. Significant attention is needed to achieve it.

Fluctuation in the demand and supply has led to a crisis in the logistic end. On season demand for heavy discount days like Big Billion/ New Year/ Independence Day done by Flipkart, Amazon, Paytm, SnapDeal, etc. or for festivities like Navratri/ Durga Puja/ Diwali makes the traditional supply chain model disrupt, and one can no longer wholly rely on traditional warehousing methods (in-build, renting for long-term). The industry has found a way to do efficient business, it is known as flexible or on-demand warehousing. It is also called plug-&-play model.

What is on-demand warehousing?

On-demand warehousing is simply what its name suggests. It is a business model where warehouse owners lease out warehouses as per the need of the client, and not what they readily have. Based on the size, and duration, these owners provide warehouses on rent. It is on a contractual basis.

It allows the client to have logistics space on a needed basis following a pay per use system. It has given regulars a way to not worry about investing their money in building or renting out a warehouse on a long-term basis. This approach has made warehousing leasing flexible. It offers a dynamic and scalable solution that is centred on transactional pricing which allows a firm to grow and contract its networks as demanded.

To the customer it a mercy as he does not have to commit for long and make the business un-viable. To the investor, it makes no harm, as it can lease out the space throughout the year. In a nutshell, it is understood that it gives quick access to storage space without the heed of costly setups.

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How the need for flexible warehousing arose?

E-business can no longer be sure that long-established methods will be the absolute way to reach its high point. It has to do or follow a method that is out of the box, a way that can help in overcoming the following challenges:

  • Demand can be uncertain – A market is a risky place and a venture in traditional warehousing doesn’t sound appealing. Although, this method can be useful for large business houses with constant demand. On the other hand, it proves expensive to small businesses or businesses with high demands for products at the peak season only.
  • Budgets are limited – This is no hidden fact that the construction cost requires a lot of capital. It includes the investment cost followed by expenses in human resources, technology, maintenance, shipment, and other movements in the supply chain.
  • No assurance of end-user flexibility – If the available resources are not utilised properly it will directly impact customer satisfaction. To avoid such circumstances one should adopt an accommodating and scalable approach.
  • Fast delivery leading to pleasant customer opinion – There is no perfect guideline explaining how a customer can be content. It is one big challenge for a firm, no matter the size; a satisfied customer is an ultimate key to achieve profit. Therefore, provide favourable services with the help of an on-demand warehouse.
  • Warehousing platforms located within a few kilometres of the customer – It is hard and expensive to find a warehouse at a prime location. Whereas on-demand warehouses are established at such locations are available whenever you need them regardless of the duration.

Why is on-demand famous among e-commerce competitors?

High demand for flexible warehousing arises due to:

  • Seasonal changes faced in the supply chain
  • Product promotion
  • Setting up a place in new market space
  • Surplus/bulk buying
  • To shorten delivery time

On-demand warehousing – A saviour

Flexible warehousing can be proven beneficial to both large and small businesses. Your logistics backing will not be slow to catch up with the competition by joining hands with service providers like StoreFresh. You can surpass competitors by accessing the following benefits of on-demand warehousing.

  • Avoidance of pricey capital financing – As stated earlier, an on-demand warehouse helps in eliminating the rate one can bear while using traditional methods. These come in handy when needed and are available on a short-term contract basis which can be extended according to the requirements.
  • Organised workflow – It boosts the utilisation of the wanted available space. It also helps in keeping check of order procurement and inventory management.
  • Scattered warehousing network – These warehouses are at prime locations, at major city hubs that you won’t find easily anywhere. It makes the delivery process uncomplicated and shorter.
  • Feasible option – Time, money, and efforts are lessened. It is possibly the most workable option as the services are available in real-time.
  • Labour-on-hand – For an e-commerce company, fulfilling the requirement of urgent labour might not be possible. But, on-demand warehouses act as the labour-on-hand. They have the calibre to handle bulky order with efficiency.
  • Suitable for every business type – Large scale businesses can use this when they need more space at the wanted location, while medium and small scale businesses can use it at the time of peak season. It also helps them in growing their business and entering new market spaces.
    Companies that have started their business digitally are benefitted from it the most.

All these factors, directly and indirectly, contribute to the exponential progress of e-commerce sales.

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StoreFresh- A Better Option, How?

StoreFresh offers a contemporary and realistic approach to warehousing, fulfilment, and distribution centre. The ahead-of-curve approach of StoreFresh has enabled them built their network chains, which helps makes the process cost-effective. It has on-demand centres at almost every prime location of Kolkata, Siliguri, Bhubaneswar, Guwahati, Jamshedpur, Ranchi, and Patna; all equipped with latest technology. It helps in ensuring customer satisfaction and hence brings a positive effect on sales.

Partner with StoreFresh to leverage the best in supply chain management so you can operate more efficiently and grow exponentially.

2 replies on “On-Demand Warehousing And The Hidden Potential”

Scattered warehousing network system can be a viable option for small or start-up businesses. Looking forward to working with you in the near future, and thanks StoreFresh for providing such useful information.

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