On-Demand Warehousing 101: The Complete Guide

Discover More

Have you been wondering what on-demand warehousing is and how it can benefit your business? If so, you are in the right place. We have everything you need to know before making a decision. Let’s get started. 

What is On-demand warehousing?

On-demand warehousing connects warehouses with excess space to businesses in need of inventory storage and order fulfillment on a temporary basis. On-demand warehousing allows customers the flexibility needed to run businesses when budgets are limited and demand can vary. It can support your business in a variety of ways, but the three most common are inventory overflow, retail distribution, and e-commerce fulfillment. 

How is on-demand warehousing different?

On-Demand warehousing allows businesses to keep up with their customers and test out new initiatives and strategies instead of being restricted by the infrastructure they currently do or don’t have. 

On-Demand warehousing easily allows businesses to scale and cutback throughout the year to keep up with demand. This is because there are no infrastructure commitments, long-term contracts, or even short-term contracts while renting unused warehouse space. 

How is being utilized by businesses?

Many different types of businesses can benefit from using on-demand warehousing. For example, an enterprise business can use on-demand warehousing to complement their current distribution - like testing out promotions or programs, entering new markets, or help fill in the gaps for busy seasons. And a more digital business, who is used to selling directly to consumers, uses on-demand warehousing to run their entire logistic operations. 

Why is on-demand warehousing needed?

Over the years, the way consumers shop has changed. The change in the way we shop has left the logistics industry wondering how to get items to our doorsteps instead of the store shelves they used to stock. The flexibility that on-demand warehousing gives is what companies are after. With the variety of different ways consumers can shop and the constantly changing demands, on-demand warehousing is a quick and convenient way to improve supply chain strategies. 

Want to learn more about on demand warehousing? Check out our latest blog to get the in-depth description.