It used to be the case that business owners who needed to store inventory had limited options. Large companies usually purchased and maintained their own dedicated warehouses, but smaller businesses didn’t have that luxury. Instead, they usually rented warehouse space and often wound up wasting money and space when inventory was low.
Now, there’s a better option, and it’s called on-demand warehousing. Whether you run a local brick-and-mortar store or an eCommerce business, you owe it to your company to investigate this new model for warehousing and fulfillment. Read on to find out about just a few of the benefits of on-demand warehousing that make it worth the minor inconvenience of switching to a new inventory storage model.
What Is On-Demand Warehousing?
Before discussing the specific benefits of this newly developed fulfillment model, it’s worth taking a moment to define terms. On-demand warehousing can be defined as inventory storage and fulfillment model that matches merchants in need of temporary storage space with warehousing providers that have room to spare on their shelves.
Instead of renting dedicated space in a particular warehouse, which often winds up going to waste when inventory is low, this form of 3PL Warehousing allows merchants to pay for storage and fulfillment services on an as-needed basis to keep costs low. Cost efficiency isn’t the only advantage of making the switch to this thoroughly scalable and flexible warehousing model, either. On-demand warehousing also improves business operations in a variety of other ways.
The Benefits of On-Demand Warehousing
The most obvious benefit of renting temporary warehouse space on an as-needed basis is that merchants don’t need to pay for services they don’t need. That’s only the beginning, though. On-demand warehousing is also more convenient, more efficient, and more resilient, allowing eCommerce and traditional stores to improve not just their bottom lines but also their reputations. When you make the switch to a reliable on-demand warehousing provider that already has an established system for managing eCommerce orders, you can expect:
1. Guaranteed Fast Shipping
Today’s consumers expect almost instant gratification. After all, large online retailers often guarantee two-day and next-day shipping, and most consumers expect small businesses to keep up. Taking advantage of on-demand warehousing services means gaining access to an entire network of dedicated full-service warehouses, making it easier to keep inventory in stock close to large customer bases.
2. Supply Chain Resilience
The supply chain disruptions that occurred as a result of the coronavirus pandemic did more than leaving shelves bare and create headaches for consumers. They also damaged many stores’ reputations and left retailers rethinking their approaches to supply chain strategy. Now, most merchants prioritize supply chain resilience as much as they do efficiency, and that’s a good thing. Partnering with an on-demand warehousing provider allows vendors to maximize both resilience and efficiency by scaling resources to match demand.
3. Access to a Team of Experts
Building an efficient and resilient fulfillment network is a complex task that requires in-depth analyses of not just storage requirements but also shipping data, sales cycles, and other key information. The staff at on-demand warehouses, especially those that specialize in working with eCommerce clients, have all the experience required to help merchants better understand sales cycle patterns, identify potential supply chain bottlenecks, and develop more effective and efficient fulfillment models.
4. More Scalable Options
When you partner with an on-demand warehousing provider, you enter into a flexible service agreement that allows you to pay for only the space and labor costs required to keep your business profitable. You can increase and decrease inventory levels as needed without incurring added costs or paying rigid storage fees that don’t reflect your store’s needs. Plus, as your business grows and thrives, your warehousing provider will still be right there to provide all the space required to store and manage inventory close to your customer base.
5. Improved Customer Satisfaction
Because on-demand warehousing providers maintain dispersed networks of storage spaces and 3PL service centers, it’s easier to get customers’ orders to them on time. Whether your store is online-only or you maintain both a brick-and-mortar storefront and a website, your primary goal should always be to keep customers happy. If your customers receive their orders on time, every time, they’ll be more satisfied with the service you’re providing and will keep coming back instead of switching to big-box retailers.
6. Greater Convenience
On-demand warehousing isn’t just more convenient for customers. It’s also a better fit for most small business owners, especially those who run eCommerce stores. On-demand warehousing providers can handle not just storage but also most, if not all, of the other services offered by traditional 3PL companies, but with greater flexibility. Your warehousing partner can be relied upon to handle everything from ordering to stocking, packing, shipping, and more, or you can outsource only some of these tasks and handle the rest in-house. Either way, you’ll love how convenient it is to work with warehousing and fulfillment experts.
Who Benefits the Most From Online Warehousing?
Any merchant can benefit from partnering with an online warehousing provider. Whether you run a small eCommerce store with a dropshipping business model or a local shop that needs easy access to merchandise for both in-person shoppers and online customers, this inventory storage model will be a great fit. Online retailers, stores that rely on a single peak season for the majority of their sales, and businesses that need effective short-term solutions can all save even more money and hassles by switching to an on-demand warehousing solution.
Make the Switch Today
Ready to make the switch to a thoroughly modern, data-driven warehousing and fulfillment approach that will offer greater flexibility and faster shipping times? It’s time to reach out to an on-demand warehousing provider. Whether you’re currently paying for warehouse space you don’t need or paying too much for logistics services that don’t boost your company’s bottom line, switching to a 3PL on-demand warehousing provider is a great choice, not just for your store’s bottom line but also for your peace of mind.
