If you want a storage solution that's flexible, scalable, and cost-effective at the same time, an on-demand warehouse might be just what you're looking for.
This innovative model works on a sharing economy model.
A warehouse with extra space can rent out the underutilized space to companies needing storage.
The warehouse owner earns from his entire area, and the customer has the flexibility to pay only for what he uses and can scale up only when he requires it. It's a win-win situation that benefits everyone involved!
When you hire the services of an on-demand warehouse provider, you are tapping into the unused space in fulfillment centers positioned closer to your customers.
The bonus? You do not get locked into long-term contracts or multi-year leases.
The flexibility and cost-effectiveness of on-demand warehousing make it an attractive option for large, digitally established brands and small enterprise businesses.
Read more about On-demand storage here.
That said, how can you choose the right on-demand warehousing provider that meets your storage needs and budget?
Here are a few tips to help you.
1. Evaluate your storage requirements
i) Have clarity on the specific storage requirements of your business.
ii) Check the number of storage-keeping units (SKUs) to calculate your needed storage space.
iii) Also, calculate the necessary costs by comparing your SKUs and the required storage for your inventory.
2. Nature of your products
i) Ensure the warehouse is equipped to handle products with specific storage requirements. For instance, if you sell dry or frozen foods, the warehouse should have freezers for cold storage, temperature control systems, and other necessary storage support.
ii) Check out the insurance package offered by the warehouse provider to cover your products in case of accidents or losses.
iii) Find out the warehouse provider's extra services, including processing, assembling, labeling, packaging of products, order fulfillment, and inventory tracking.
3. Location of the warehouse
An optimal warehouse location can help you surpass your customers' expectations by delivering orders within a few hours or days.
i) If your warehouses are near densely populated areas, your last-mile delivery and order fulfillment processes will be faster and more efficient.
ii) Being located in a big city with easy access to transportation facilities can speed up the production and delivery of your goods.
iii) Choose a warehouse located near a highway with exit ramps. You can reduce fuel consumption, save money and time on shipping, and avoid delivery delays.
4. Compatibility of products stored in one place
When choosing a warehouse, it's essential to consider the variety of products they store, ranging from fabrics to flammable chemicals.
It's crucial to select a warehouse with a proper stock allocation process that won't compromise the quality of your products.
i) Understand the pallet racking system followed by the warehouse provider. Ask them what kind of products will be stored next to yours so as to ensure that only compatible items are kept next to your goods.
ii) Find out how the warehouse isolates and disposes of outdated stocks, so your fresh inventory can be appropriately stacked and safeguarded from any kind of spoilage.
iii) Also, ensure that the warehouse follows an adequately laid out racking system to avoid storage congestion and allocate enough space for each item in your inventory.
5. Technology and warehouse management software
Select a warehouse facility equipped with the right technology to enable continual visibility of shipments in transit.
i) Find out if the provider uses a warehouse management system that can be integrated with your ERP software to easily track your orders, inventory, shipments, and delivery statuses.
ii) The technology adopted by the warehouse provider should take the load off you by automating routine processes so that you can focus on the critical aspects of your business.
6. Learn more about potential warehouse providers
Before selecting an on-demand warehousing provider, research and gather more information about all potential vendors.
i) Read online reviews, contact their references, and compare the pricing and terms and conditions quoted by different providers.
ii) Before signing a contract with an on-demand warehouse provider, discuss everything that matters, including pricing, storage requirements, distribution process, and access restrictions.
iii) Once you've agreed upon the terms and conditions, be sure to get everything in writing to avoid legal complications or any other disputes in the future.
7. Inspect the warehouse facility in advance
Pay a visit to the warehouse before making the final decision. A physical audit of the facility can save you time and money.
You will get a first-hand experience of the services, storage provisions, and other amenities the warehousing provider offers.
You may also get to interact directly with their team, understand their processes, and ask more relevant questions.
Meet your growing delivery needs with a flexible, on-demand warehouse
Many customers now expect faster shipping times, such as one-day or next-day delivery, when purchasing goods and services from eCommerce platforms.
On-demand warehousing is a sharing economy model that can help decentralize warehouses and position shipping networks closer to customers.
It allows for faster last-mile deliveries and can benefit both retailing and consumer brands and warehousing players.
i) Retailing or manufacturing businesses with warehousing space requirements can connect with logistics players offering excess warehousing capacity on a pay-per-use basis.
ii) Monetization of unutilized storage space saves warehousing players from the hassle of bearing considerable expenses on surplus spaces.
iii) On-demand warehousing allows businesses to expand their distribution networks without investing in new fixed assets.
iv) Customers ordering from their favorite retailing brands receive their orders on time, so they will be encouraged to place more orders.
And what's in for the customer?
When you order from your favorite brands, you can trust that your delivery will arrive promptly. You can confidently keep coming back and placing more orders in the future.
Are you looking for an on-demand warehouse provider in the UAE? Our on-demand warehousing solutions are designed to enable your brand to focus on business development and customer acquisition without worrying about finding new physical warehouses.
Contact our team to learn more about the on-demand warehousing services we offer.
