Amazon started it and retailers and logistics companies carried it forward; the daunting commitment of same-day deliveries. The whole world has gone and gotten itself in a hurry – especially after the COVID-19 lockdowns forced everyone to stay at home and order most of what they want online.
Customers now expect ever-faster delivery times, which has given birth to the idea of on-demand warehouses – or at least space within said smart warehouses. In 2018, the biggest supply chain challenges faced by suppliers and companies were visibility and fluctuating consumer demands.
This meant that no one supplier could be sure of what customers will need, when and where. Yet, every customer expects quick delivery at their doorstep. How can this be achieved ?
The answer to this question was – and still is – on-demand warehouses.
“It’s all about agility i.e. having the right inventory in stock in the right place.”
Just like it isn’t recommended that you put all your eggs in one basket, keeping all your inventory in one warehouse is an outdated practice. Now, you need to conduct relevant market research and see where you need how much of an item, maintain an inventory level slightly above that, and store your equipment in different locations accordingly. This practice is called smart warehousing.
However, if you start purchasing or even renting warehouses, you’d be at a loss.
On-Demand Warehouses to the Rescue
On-demand warehousing shows great potential for businesses that sell products beyond their physical jurisdiction or are looking to expand their network while reducing their capital expenditure. Although much more beneficial for smaller retailers in terms of cost, the prospect can serve as a testing ground for larger corporations.
It makes sense for companies to use on-demand warehousing to support their current storage facilities rather than invest in completely new warehouses and expand. This type of service is known as “warehouse as a service” and the main goal of this service is not just cost-effectiveness, but also to be able to allow companies to be flexible.
This flexibility, in turn, allows faster deliveries and a much more streamlined supply chain structure.
How Smart Warehousing Enables Fast Deliveries
Warehousing is a service that basically “replicates and duplicates.” As new inventory is introduced, warehouse owners adapt to it – the latest change being same-day deliveries. This is by far one of the biggest steps towards customer facilitation; and perhaps the most difficult one.
LogistCompare’s on-demand warehousing concept extends across the UK to offer essential supply chain components such as truck booking, freight handling, and more. The idea is to facilitate tenants as much as possible and make sure you meet your same-day or quick delivery promises much more effectively.
The pay-as-you-go system also ensures that you are only paying for what you use, further reducing the cost of warehousing and highlighting the smart in smart warehousing. The benefit of leasing on-demand warehouses from the same network is that you get to enjoy a seamless transfer of goods between warehouses – not having to wait for company-culture-differences to stand in the way of speedy delivery.