5 Major Reasons for On-Demand Warehousing

5 Major Reasons for On-Demand Warehousing

On-demand warehousing is one of the fastest industries in the surging supply and logistics marketplace. You may be unfamiliar with on-demand warehousing. On-demand warehousing helps companies in need of short-term warehousing find warehousing spaces that are currently empty or partially empty for a brief time.

The most appealing benefit is the companies in need are not required to sign expensive long-term leases with additional fees. On-demand warehousing solves overflow problems for companies needing to house and move product above and beyond their current capacity. It also accelerates delivery speed to keep pace with competitors.

There are five major reasons companies use on-demand warehousing:

  1. Overstock – On-demand warehousing allows companies to house unexpected overstock inventory. This allows companies to avoid restocking charges and keep pace with consumer demand.
  2. Business expansion – Thriving businesses know the value of scaling their inventory to match their growth rate. On-demand warehousing limits the risk of expanding too quickly. If a new sector of growth is sustained, your business can then consider long-term warehousing solutions. If growth begins to fade, your business is not under the financial obligation that often comes with long-term warehousing.
  3. Accelerated delivery speed – Buyers want products delivered faster and cheaper to meet consumer expectations. On-demand warehousing allows distributors to establish temporary fulfillment centers for faster delivery. It also allows sellers to test location viability without making a significant financial commitment.
  4. Seasonal demand – Companies who experience seasonal surges of supply and demand are beginning to leverage on-demand warehousing. Whether it’s Black Friday sales or back to school supplies, the flexibility and temporary nature of on-demand warehousing is built to accommodate varying waves of buyer interest.
  5. New product inventory – Launching any new product still carries the risk of uncertainty. Market research, focus groups, and advertising campaigns can help alleviate much of the risk, but it’s on-demand warehousing that serves as a final safety net in case the new product fails. Companies can use on-demand warehousing to temper product demands without sacrificing valuable on-site floor space.

Growing companies need innovative alternatives to traditional warehousing services. Accent offers a suite of Warehousing and Custom Fulfillment Services to help companies in virtually any industry find the right fulfillment solution. Our team is experienced with customizing warehousing and fulfillment services to fit your company’s specific needs and budget.

Are you in need of temporary warehousing? Start a conversation with one of our Accent team members today. Click here to send us a message.