Does it feel like your supply chain got a little bit more complicated in the recent past?
Things used to be simpler, right? Like going to your favorite restaurant. You go there, order your meal, and within no time, it is on your table.
Well, the supply chain used to work like that, too.
Products would flow from manufacturers to stores and ultimately to the customer. Simple, just like your favorite meal.
But in the past five years, things got a little more complicated.
The rise of e-commerce, global trade disruptions, and unexpected events like the pandemic threw a wrench into the works.
Suddenly, the favorite restaurant couldn't get the ingredients it needed, and the meal was delayed or not available at all. Similarly, companies faced delays, shortages, and rising costs in their supply chains.
These supply chain challenges are more than just inconveniences. It could mean doom for a business.
They impact your company's ability to serve your customers effectively, stay competitive, and even maintain profitability.
It isn't a loss cause, though. Challenges keep businesses on their toes!
We might need some superhero solutions to overcome them. And that's where on-demand warehousing steps in, ready to save the day.
Enter On-Demand Warehousing
Simply put, on-demand warehousing is like an Airbnb for warehouse storage. Do you need space? You can get it with a call. And you can return the space when you don't need it anymore.
With on-demand warehousing, companies can rent storage space for their goods as and when needed.
In the UAE and beyond, on-demand warehousing is making supply chains smoother and more efficient. How? Let's find out.
Supply Chain Challenges
What are some challenges that on-demand warehousing can solve?
Challenge 1: Not Enough Space, Too Much Stuff
UAE aims to grow industrial GDP contribution to AED300bn by 2031 says Arabian Gulf Business Insights.
That translates to a lot more goods changing hands. Where do we store it, though?
Adam Wynne, co-head of UAE industrial and logistics at Knight Frank, sums up the issue: "There is a lack of good-quality industrial and logistics space throughout the UAE."
Solution 1: Inventory Woes Solved
On-demand warehousing is storage that appears out of thin air when you need it.
With on-demand warehousing, companies can flexibly increase their storage space when they have excess inventory, ensuring they always have enough space.
An on-demand warehouse supplier is usually a multi-client facility, which means more businesses are supported in a single facility. A novel way of solving the country's warehousing problems!
Challenge 2: Customer Demands Keep Changing
Customer demands change faster than you can keep up.
One viral e-celeb post on Instagram could mean that bell-bottom pants are the new rage, and you're stuck with a factory load of skinny jeans! Where does that dead stock go until trends resurrect them again?
Solution 2: Adapt and Scale
On-demand warehousing provides companies with a scalable solution.
Companies can flexibly increase their storage space when they have excess inventory, ensuring they never run out of space.
So, until skinny jeans are back in trend, move them out and make space for trending inventory. Trends are fickle, but there's much money to make on them.
Challenge 3: Unpredictable Events
Supply chains face unexpected disruptions. The COVID pandemic, for instance. It was like a sandstorm that hit out of nowhere and was a disruption like never before.
In a Mastercard's E-Commerce Consumer Spend study, Girish Nanda, country manager of UAE & Oman, Mastercard said back in 2020: "With constraints imposed on our daily lives due to Covid-19, consumers are adopting new shopping and payment habits at an accelerated pace."
The study showed there was a sudden surge of e-commerce spending, with 73 percent of UAE consumers shopping more online for groceries, 66 percent for clothing, and more.
Speed of delivery meant make or break!
Solution 3: Navigate Through Unpredictable Events
Move closer to the customer and "place your eggs in many baskets" is the solution. But building warehouses in multiple locations when disaster hits isn't the logical way to go.
On-demand warehousing helps you pivot quickly. It gives you the benefit of temporary storage in multiple locations.
Companies can divide and store their goods closer to their customers when there is a sudden surge in demand so they can fulfill faster delivery times.
Challenge 4: Supply Chain Maze
Supply chains are getting more and more complex.
Rising customer expectations of faster delivery times, easy return options, the need to maintain inventory in multiple locations – all this and more makes it a logistics nightmare for businesses.
Solution 4: Complexity Simplified
A Ware2Go survey showed that 40% of merchants agree that on-demand warehousing gives them access to better inventory technology, and 33% say they benefit from the vendor's fulfillment automation capabilities.
Leave the warehousing pains to experts! They can do it better, and it frees your employees to focus on their core competencies.
Challenge 5: Green Supply Chain Goals
Go Green seems to be the norm.
Companies have become increasingly conscious of their environmental impact. Customers expect it, too.
But it's not easy with goods being transported all over the place, leaving a big carbon footprint.
Solution 5: Green Supply Chain Supported
On-demand warehousing supports green goals. It's like sourcing locally grown ingredients for your meals to support sustainability.
Companies can store products closer to customers, reducing the carbon footprint of long-distance transportation.
It's a win-win for everyone and the planet!
Challenge 6: Last-Mile Delivery Dilemma
85% of respondents in a recent consumer survey said that they would not shop with a retailer again after having had a poor delivery experience!
All that effort on production, operations, development and it could get ruined because of that critical last-mile.
Solution 6: Last-Mile Delivery Streamlined
On-demand warehousing helps streamline last-mile delivery. Simple logic - have delivery drivers start their routes closer to your customers.
With warehouses at multiple locations, companies can position their products strategically for quicker delivery, making the shopping experience smoother for their customers.
Challenge 7: Budget Squeeze
We all want to get the best value for our money, right?
But, rising transportation and labor expenses can squeeze your company's budgets, making it tough to provide customers with affordable products.
Solution 7: Cost Squeeze Eased
Instead of investing in permanent warehouse space, companies can use on-demand warehousing as a cost-effective, pay-as-you-go solution.
It's like paying for your meal only when you're dining out rather than maintaining a cook full-time. This helps keep costs in check and pass the savings on to customers.
On-Demand Warehousing That Works
As an on-demand warehousing partner, Cargoz helps ensure that your customer's favorite products are always available whenever they need them, no matter what challenges come your way.
With us, you pay only for what you use. With warehouses of every type and size in multiple locations and the latest technology at our disposal, it is our goal to perfect your warehousing experience and give you precisely what your business needs.
Give us a call, and let's get talking.