Warehouse-as-a-Service and the Future of Logistics

The past two decades have seen an exponential surge in on-line sales. Because of this, there has been a growing scarcity of e-commerce fulfilment centre space.

Businesses that want to gain a competitive edge by meeting customers’ increasing demands have shown interest in a new kind of offering, Warehouse-as-a-Service, or WaaS.

So, what is WaaS, and how can it affect the future of logistics?


Warehouse-as-a-Service and meeting Future of Logistics
What Is Warehousing-as-a-Service (WaaS)?

At present, there are a significant number of retailers that have spare warehouse space in their quarters. Wouldn’t it be beneficial to utilise that space and provide an extra stream of income by giving access to these spaces to other retailers?

Well, it sounds perfect, but the crucial thing is to make the process efficient and speedy by quick demand matching and price transparency, instead of long and tiresome searches and complicated negotiations.

This is where Warehouse-as-a-Service (WaaS) comes in. This innovative solution provides a revolutionary way to connect retailers who have extra warehouse space with those who need it.

The service matches a retailer’s demands with available spare spaces in the area, and the entire process, from duration to location, is entirely flexible. A retailer can commit for as low as one month and, importantly, it’s a ‘pay as you go’ method as well.


Aside from providing storage space, this on-demand service also provides a host of other warehousing services, such as inventory movement, which can be scaled according to requirement.

The WaaS model transforms the pace at which retailers can access new warehouse space rather than spending inordinate amounts of time searching for and negotiating a new lease with all the cumbersome details involved in contracts. It’s much akin to Airbnb for B2B businesses to store their goods whenever the need arises.

Retailers using the WaaS model can locate, secure and move into a warehouse within just a week. They can then scale up or down the amount of space by setting minimum and maximum requirements in response to, for instance, seasonal up-or-downturns, customer demand and other factors like Brexit.

This makes doing business more agile than ever, and costs are also kept directly proportional to sales in every area of operation.


How WaaS Can Reshape the Future of Logistics
WaaS has the potential to reshape the future of logistics in a very significant way. Instead of purchasing warehouse space based on peak seasonal demand, retailers can opt for standard demand warehousing and choose WaaS to cover their peak periods. An allocation of 20-25% of the stock to an on-demand model can not only bring down costs, but it can also make your business more agile. By adding this warehousing flexibility to the supply chain, retailers can also usher in new business models and embrace distributed logistics to multiple smaller locations. This can reduce delivery times, fuel costs, emissions, driving times and also improve customer satisfaction in the process. WaaS can also allow companies to trial new products in limited markets by giving them the ability to try the product on the ground within a short period. If you want to try a WaaS model for your e-commerce or retail business,  or if you’re only looking for smart warehousing on-demand and logistics solutions, visit LogistCompare, the largest on-line network of on-demand warehouses and services in the UK. We provide in-depth logistics support and can guide you on digital warehousing solutions for all your business needs.
If you have an questions relating to this article or would like any information on our warehousing and fulfilment services, please Contact Us, and we will be happy to assist.