For warehouse operators able to move quickly, on-demand warehousing offers chance to boost warehouse utilization.

The other month, after the tornado struck Nashville, Tenn., we got urgent inquiries from businesses whose warehouses had been destroyed. Then the COVID-19 pandemic triggered unprecedented global supply chain disruption, leaving businesses to face challenges unlike anything they have ever seen. And, again, we are working around the clock to provide solutions that are flexible, easy to procure, and reliably managed.

In such situations when the need is immediate, lengthy contract negotiations are not feasible. That’s how the concept of on-demand warehousing took hold.

Need for temporary warehouse space is rising 

Warehowz’s cloud-based on-demand warehousing platform connects businesses in need of short-term warehouse space and services with warehouses that have underutilized space available. The aim: help both parties achieve a quick win-win. Now, as businesses battle uncertainty both in the short and long term, the need for temporary warehouse space is rising.

For businesses seeking to build agile, shock-resistant supply chains in an increasingly volatile environment or — as we’re seeing now — find themselves dealing with undeliverable shipments and other disruptions, on-demand warehousing is a crucial tool. For warehouse operators, it means an opportunity to monetize hard-to-fill square feet, improve warehouse utilization rates, and mitigate the supply chain impact of unexpected events.

Tip1: Combining long-term contracts and on-demand customers for improved warehouse utilization

If you belong in the latter category, you may be wondering how you can actually make it happen. Can you take advantage of on-demand warehousing without disrupting your current business model? Unlike some on-demand warehousing platforms, Warehowz is not a WMS but an online marketplace that does not require the alteration of processes for long-term inventory.

Think of this short-term engagement as a complement to your current operations, an opportunity to boost warehouse utilization and generate revenue from space that otherwise would be generating none. On-demand warehousing adds agility to your warehouse operations, allowing you to quickly add or remove on-demand customers to increase warehouse utilization, while still meeting your promises to your long-term contract customers.

Tip 2: Reducing the number of variables for quick transactions

The key, as we tell our warehouse clients, is to reduce the number of variables for these specific transactions. The purpose of a short-term engagement is different and needs to be processed with expediency to make sense for both parties. Companies in urgent need of warehouse space typically only have days to play with, leaving opportunities for warehouse operators that can move quickly.

As a general rule, the primary points of discussion should be narrowed down to the following:

  • Square feet
  • Pallet in/pallet out
  • Labor

Then, if the engagement matures into a long-term contract, it can be renegotiated and aligned with your overall operating model.

How to get started

Here’s how can you get started and instantly reach a large pool of potential clients:

  • Create an online account. It’s free and takes no more than 5 minutes. Go to List Space and get started.
  • Publish your listing. As soon as your listing is published, it becomes visible to clients on the platform. They will examine your capabilities and determine whether your warehouse fits their requirements. If there is a match, they will send a detailed project proposal.
  • Review the project proposal. You are in charge. What is your pricing structure? Which project will you accept? It is all up to you.
  • Accept a project. The time has come to do what you do best: provide warehouse services to your new client using your existing staff, facilities, software, and processes.
  • Communicate with the client: Questions, downloads, billing, payments — the platform provides all the tools you need for swift exchanges. Only when you receive your first payment through the platform will Warehowz charge a small transaction fee. In other words, we only succeed when you do.

Want to learn more? The Warehowz team of seasoned industry professionals are here to help. Contact us today and find out whether adding on-demand warehousing makes sense for your business.

schedule a consultation with Darrell

Read more: