What is On-Demand Warehousing?

Warehousing companies offer ecommerce shops large and small a convenience referred to as on-demand warehousing. Commercial customers have access to not only shared warehousing space but fulfillment and logistics services. On-demand warehousing is essential for both growing and established companies.

A lack of warehouse space is common nationwide. Ecommerce shops that lack sufficient space in their own warehouses contract with on-demand warehousing companies that do have extra space available. It’s a temporary yet practical solution to the lack of warehouse vacancies.

Who is the ideal on-demand warehousing customer?

Retailers in possession of thousands to millions of SKUs benefit significantly from on-demand warehousing options. If an ecommerce shop grows exponentially and requires millions of square footage to house merchandise, on-demand warehousing options meet their existing and future space needs.

Commercial businesses that profit from selling seasonal products may find themselves overwhelmed by hundreds of pallets over a short period of time. On-demand warehousing, being a short-term solution without long-term contracts, optimally fulfills the company’s seasonal needs for additional space.

Some companies sell small merchandise, such as vitamins or mugs, and do not require a large amount of warehousing space. However, businesses that specialize in mattresses and other oversized items require a vast amount of space—making on-demand warehousing preferable to in-house storage.

On-demand warehousing also allows businesses to scale. Small companies that expect future growth can expand into additional space and locations. The right on-demand warehousing partner is key for each stage of growth, whether the company sells 10 or 1,000 products per day.

In-house warehousing may be too expensive or insufficient for some retailers, as it requires significant overhead. Traditional third-party logistics providers are inflexible and also pricey. But on-demand warehousing meets the budgetary and space needs of a wide range of businesses.

What are the benefits of on-demand warehousing?

1. Choice of Locations

On-demand warehousing gives retailers the benefit of positioning their merchandise in a location that is in proximity to their customer base. This alone cuts down on shipping times and improves order fulfillment rates. As a result, customer demands are met swiftly and economically.

2. Flexibility

Flexibility is a main draw of on-demand warehousing solutions. Rather than long-term leases and fixed contracts found in traditional warehousing, on-demand warehousing offers ecommerce businesses the benefit of short-term, flexible leases. Retailers profit without being burdened by long-term commitments and overheads.

3. Scaling

Product demand is difficult to accurately forecast due to volatile market changes. On-demand warehousing allows retailers to adapt quickly, however, whether that involves scaling up during peak season or meeting inventory overflow. Businesses stay competitive with the support on-demand warehousing offers.

4. Storage Space

Depending on market fluctuations, ecommerce shops may find themselves with too little or too much storage. When space is problematic, on-demand warehousing allows businesses to modify their storage needs with ease. Rapid expansion or contraction based on current demands are feasible.

5. Visibility of Inventory

Organization of inventory is key to fulfilling customer orders swiftly and efficiently. When retailers work with an on-demand warehousing company, they have immediate visibility into inventory levels, operations and order fulfillment methods. As an additional benefit, inventory visibility is in real-time.

6. Short-Term

Ecommerce shops may experience product demand during certain times in the year, necessitating them to seek out short-term solutions. On-demand warehousing is temporary. Utilizing this invaluable resource only when needed helps to prevent underutilization of space and ensures every square foot of existing warehouse space is used effectively.

7. Test New Markets

Risk is averted when retailers use on-demand warehousing to test new markets. They have the opportunity to expand without the drain of long-term leases or investments in warehousing operations. Companies are better able to adapt their supply chain to fulfill their logistics needs on a global scale.

8. Customer Loyalty

Orders that are delivered on time build customer satisfaction and loyalty. The retailer benefits, too, when they are not bogged down by excessive inventory storage. These benefits are outcomes of on-demand warehousing—a cost-effective solution that comes with the agility businesses need.

How do retailers choose an on-demand warehousing company?

Retailers are advised to consider several factors before settling on an on-demand warehousing provider. It’s crucial to evaluate how well they manage low performers. Find out how they conduct an inventory audit. If possible, tour the fulfillment center to determine how it differs from others.

Another important consideration is their process of handling damaged goods. Merchandise damage is inevitable in any warehouse, making it necessary to understand how the on-demand warehouse addresses damage as well as other issues that require escalation or workers to be physically present.

Look for a warehouse with specialized storage. Retailers in the business of selling goods that must remain frozen or cold, for instance, should partner with an on-demand warehouse offering a network of specialty warehouses; these include dry, cold, frozen, hazardous materials or military authorized.

Ample warehouse storage is key for any business that aims to scale or simply meet seasonal demands. If your company is exploring various on-demand warehouse storage options, consider OLIMP. We can connect you with thousands of warehouses across the nation to give companies storage when and where they need it.

Ecommerce shops have access to both short- and long-term storage options. With no burdensome long-term contracts, OLIMP is the preferred on-demand warehousing provider for retail businesses that desire flexibility and cost-effectiveness. We can even accommodate companies that need last-minute storage.

Handling distressed freight is another area of specialty. Freight that has been rejected can be stored at our vast network of warehouses. If needed, you can store one pallet for one day. A number of our warehouse partners offer local delivery, allowing you to drop off your freight with little worry.

Another plus of choosing OLIMP for your warehousing needs is our specialized storage options—also available from the east to the west coast. Our specialty warehouses include dry, frozen, and cold, among others. We also offer warehouses with clamp trucks and slip sheet forklifts.

At OLIMP, reliable on-demand warehousing is at your fingertips, whether you need pallet rework, immediate storage or a cross-dock. Book a warehouse online and receive several warehousing options across the country. Once you book, simply drop your freight. Visit us online today.