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In the fast paced world of ecommerce, your business has to remain agile and at the forefront when it comes to identifying trends. On demand warehousing is one such trend that demands your attention if you plan on selling items online. If you don’t know how on demand warehousing differs from traditional warehousing or why it would be important to you, you could already be behind the curve in comparison to your competitors.
But you have nothing to fear if you read this handy guide about on demand warehousing. We’ll walk you through the nuances of the setup and let you know exactly how and why it can impact your ecommerce business in a positive way.
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On demand warehousing is an offering to retailers, shippers or ecommerce companies that allows those businesses to access warehouse spaces. This business model has the benefit of giving businesses seeking out warehouse space a model where they pay for only what they use, which can be very helpful in a scenario where money is at a premium to your business.
The reason on demand warehousing is gaining popularity is it is a pay-per-use model where you only pay for your share of what is provided to you. Therefore, the warehousing space you take up, the orders that are filled for you and any logistics services provided are exactly what you’re charged for — no more, no less.
This prevents you from having to deal with the costly investment of either preparing your own supply chain or even paying a flat fee for certain services, not using them over a given period or at the same frequency but being charged the same nonetheless.
Most third-party logistics (3PL) companies also like this because it allows them to fully maximize their space and staff. Businesses such as 3PLs that provide a service also look upon it fondly because it makes their customers — in this case, the ecommerce businesses — happy.
Check out our article in fulfillment optimization to increase this area of your operations.
While it was just explained what it is and the general reason why it exists, let’s look at some more specific examples of when to use on demand warehousing.
The first one is for a smaller operation growing their business and just starting out or who has finally moved from a very small-scale operation to expanding. Maybe your small workspace or even home have been outgrown by the amount of product you’re moving. That is a good thing, but one that now requires space you don’t currently have. It is probably completely infeasible to expect an expanding business to invest heavily in building its own warehouse or leasing something comparable.
In the above scenario, the ecommerce business owner can use the on demand warehouse with the possibility of no long term commitment involved. You get the valuable real estate you require inside the warehouse without having to actually purchase any real estate yourself. This extends outside of just the space for your goods and can require short term or long term contracts. In some cases, you may be allowed to go month by month.
You’ll also get a distribution center of sorts in terms of being able to tap into the warehouse’s fulfillment network. In the on demand warehousing setup, you can receive a cost effective order fulfillment where you pay per order filled, not just for the privilege of having the warehouse on demand for you.
Another neat aspect of on demand warehousing for the business using it is shielding them from the risks associated with being responsible for setting up, expanding or otherwise managing a supply chain. It gives an ecommerce outfit fulfillment solutions without having to come up with the solutions themselves.
Now that you have the what and the why of on demand warehousing, it’s time to introduce you to what it would be like to have a 3PL handle this for you. First and foremost, a progressive, highly adept 3PL will be experts in on demand warehousing. They will have all the warehouse space you could ask for, and have this space located in strategically advantageous locations for you. While using this warehousing, a 3PL is also able to offer you the ability to have sudden increases in inventory storage in preparation for an expected busier time.
Plus, when using a 3PL, you’re already dealing with a company who knows on demand warehousing inside and out. Many 3PLs are also extremely well-equipped to handle order fulfillment for you, especially the pick and pack fulfillment that is commonly needed by ecommerce outfits.
3PLs already have the resources, experience and competency to do this kind of work, which is what you’re likely seeking out in the first place. While not all 3PL companies are created equal
When you’re looking for the flexibility of on demand warehousing, look no further than the knowledgeable and professional team at R+L Global Logistics. We can provide the solutions you are looking for when the old ways won’t work for your burgeoning or already established ecommerce enterprise.
With the demand of fast-paced warehousing and distribution services, R+L Global Logistics is uniquely positioned to help you adapt and thrive. We offer modern warehousing space in various locations with ample square feet to go along with stellar order fulfillment services or retail distribution.
R+L Global Logistics can not only store your goods but also fill orders on your behalf, doing so with high accuracy. In fact, the entire supply chain can be managed by us for you including accepting and processing returns through reverse logistics.
So now that you’ve gotten a crash course in on demand warehousing, give our experts at R+L Global Logistics a call at 866-989-3082. We’ll discuss how we can help your business handle its’ logistics and transportation needs and also provide you with a quick, hassle-free quote.
