On-Demand Warehousing Disrupts Logistics Industry?

News / Aug 15, 2020

We live in an interconnected world where everything has to be fast and accurate including in the business world. Customers’ demands are really unpredictable that entails the businesses to adapt with the customers’ accustomed needs. Industries such as food and grocery, transportation and logistics are now implementing the “On-Demand Service”. The emersion of E-Commerce impacts greatly on business aspect. Retailers require expansion to any accessible location and diversify their products. As a result, they need to have more spaces to provide their selling items to the customers.

In the logistics industry, On-Demand warehouse has disrupted in a positive way for some years. It allows rent a warehouse based on the requirement which means the businesses can get flexible spaces. This concept is significantly helpful especially in dealing with seasonal markets or seasonal products. The existence of On-Demand Warehouse has surged because of the flexibility in matching with the demand of the businesses. Unlike traditional leasing procedures that require long terms and full payment for the whole space, On-Demand Warehouse enables short terms and the cost is also based on the rental spaces.

Similarly for businesses with warehouse, they will not always be on busy track. There are times when their warehouse facing the off seasons that lead to unused spaces. These available spaces can be leased for short periods for the businesses that require smaller area. Therefore, they will benefit the connected tenants in reaching out their customers and the businesses can utilize the space again once the rental period is over. 

Hence, E-Commerce companies and start-ups which in need of flexible spaces and relatively small, On-Demand Warehouse provider such as WeStore will be helpful in supporting the operational activities. On the other hand, businesses with underutilized spaces could capture this opportunity in maximizing the income.

Source: datexcorp.com