Current market trends, seasonal demands, and unforeseen circumstances like a pandemic can impact the storage space requirements of businesses. Small to medium-sized enterprises are affected maximum due to the demand variations. The logistics industry is now seeing a growing trend toward flexible warehousing solutions, as it is a smarter alternative to contract warehousing.
On-demand warehousing is a cost-effective storage solution that is flexible to suit the demands of modern businesses.
The concept of flexible warehousing is similar to Airbnb. You get the flexibility of a preferred location, space, and requirement period for your storage requirements.
Small to mid-sized companies and start-ups must keep their expenses in check, especially in the initial phase for sustaining their business. Storage facilities can be an inevitable requirement depending on your business. Contract warehouse spaces can be expensive if the nature of business fluctuates with trends. Moreover, the flexibility of location isn't practical for several reasons. On-demand storage services give them the scope to expand their storage space during peak seasons and cut down on space when not required. There are no long-term contracts or hidden catches involved in the process.
Benefits of Flexible Warehousing
Temporary storage space available
Temporary warehousing requirements can range from a period of days to years. The space requirement could be just a pallet to several racks or the whole warehouse. It can also be that you require additional storage space at a specific location or multiple locations to cut short the time to the market.
Flexible warehousing can meet all these business requirements, and you can manage your distribution activities more efficiently.
It saves you money
One of the main benefits of opting for storage as a service is its cost-effectiveness. Different businesses have their seasonal peaks and the dry phase. It would be costly to acquire storage space based on your maximum requirement, which would probably be during certain months of the year. You will end up paying the price for unused space for the remaining months. With on-demand warehousing, you don't have to pay for space you do not require. And when you need that extra space, you can scale up your storage space and pay according to your use.
The operational costs of the warehouse are spread among multiple tenants, making them affordable. Most warehouses come equipped with general warehousing amenities, with some offering value-added services at a reasonable cost. No additional fee is incurred due to monthly maintenance, warehouse equipment, or other significant facilities unless it is specific to your business.
Accommodating your business needs
Depending on your business requirements, you can expand or narrow down your storage space. At times, you may have a better market for your business at another location. You can consider setting up your business temporarily, as acquiring storage facilities is easy now.
You can avail a pallet space to a whole inventory in most locations of your choice for any period. Inventory space and storage demands are no longer a cause for concern.
Flexible storage allows you to have storage facilities in one or multiple locations based on your requirement.
No Binding Contracts
Another benefit of acquiring storage as a space is that there is no legally binding agreement or a fixed tenure for rental services. Traditional warehousing facilities come with contracts that bind you with several clauses. Breaching of contract results in many consequences, most of which are unpleasant.
With flexible warehousing, SMEs can now look for storage options without any long-term obligations. And what is better is that storage options are available on demand whenever required.
Availability of experienced workforce
On-demand warehousing facilities usually have trained staff who have experience with the general working of warehouses and the industry guidelines. There is no need to spend on hiring or training staff to manage the storage.
Some warehousing facilities offer to take care of other warehousing activities like picking, packing, and shipping. Some flexible storage providers also provide the entire warehouse management as a service, where they take care of organizing your storage efficiently.
Renting space on a demand basis is a valuable change in the logistics sector and another step towards adopting agile supply chain methodologies. A growing number of businesses are now realizing the convenience of turning towards flexible solutions for their storage requirements.
Cargoz offers flexible warehousing services for businesses in and around the UAE. You can easily select a warehouse at any location for both short-term and long-term. Check out our wide range of warehousing options here.