On Demand Warehousing refers to an online marketplace that lets customers access shared logistics services, fulfilment and warehousing based on a pay-per-use model. It matches excess warehouse space owners with users, usually shippers, retailers or commerce companies. Find out about some of the top advantages of On-demand warehousing.
Allows end-users flexibility
It improves the use of facilities of warehouse partners and permits end-users flexibility in the retail industry that is constantly challenged by budget constraints and uncertain demands. On-demand storage space can be important and beneficial for businesses for more reasons than one, and it is evident in many ways.
Negotiating volume discounts with partners
On-demand warehousing for ecommerce, to begin with, has no minimum volume requirements. Yet, with volume aggregation from many customers, it can negotiate volume discounts with partners. Such kinds of advantages can be passed on to end-users. There is competitive pricing and no minimums involved, which allows low-cost goods storage in various locations. Thus, retailers can efficiently service stores. Shipping costs and times can be reduced by e-commerce players.Reduces expansion risks
The on-demand digital warehousing model also removes fixed costs and reduces the risks of a supply chain network expansion. An e-commerce company or scaling retailer never wants any extra stress of minimum payment requirement or rent payment to a distribution centre or 3PL. It was started to let businesses of any size begin their supply chain optimization, with no additional risks of making any long-term commitment to a 3PL or lease or without depending on competitors.