On-Demand Warehousing Growing in Popularity
As modern society becomes increasingly accustomed to getting everything “on demand” – whether it is a taxi or a movie or anything in between – on-demand warehousing is growing in usefulness. The ability to scale up warehousing services as demand dictates and then to scale it back down when it is not needed is very appealing to many operations, particularly those whose businesses are subject to seasonal fluctuations.
Warehouses tend to have long-term leases of at least five years, and companies are therefore forced to estimate the amount of space they will need using sales forecasts. This process is prone to errors that compound over time, which means their accuracy can decline as the years pass. This results in many businesses finding their space to be inadequate, particularly as they approach the end of their lease.
Shorter leases aren’t generally an option because they are not in the best interest of landlords. It’s also not a good use of time for the company, as finding warehouses can be a huge project and pricing strategies make it difficult to make fair comparisons.
Online Marketplaces a Win-Win Solution
Thankfully, an online marketplace can help with this problem. A set taxonomy used to digitize information about warehouses makes it easier for comparisons to be made, and the need to set prices means there won’t be any time wasted going back and forth in negotiations.
The best marketplaces will have a good number of sellers and buyers in order to create the best customer experience possible. Low barriers to entry will help facilitate this important aspect.
Successful on-demand warehouses tend to have a few features in common. The first is scalability and accessibility. The second is a streamlined process for quick transactions, and the third is a structure that can be legally enforced that offers flexible services without any commitments over the long term.
This blog post was based off of an article from All Things Supply Chain. View the original here.