Big Picture: On-demand warehousing prepares for takeoff

Big Picture: On-demand warehousing prepares for takeoff

It’s a simple concept. Warehouse space sized to a company’s immediate needs and located close to the final customer. That combination is making on-demand warehousing a powerful alternative to long-term warehouse arrangements for companies ranging from Fortune 100 to startups.

What could KFC and Exploding Kittens possibly have in common? On-demand warehousing, of course.

As different as their circumstances and products might be, both companies have used on-demand warehousing to fill a short-term need. At KFC, the problem was an untimely shortage of warehouse space that it had been promised by a third-party logistics provider (3PL). For Exploding Kittens, the problem was no warehouse space to fill an overwhelming surge of orders when the product launched.

If you haven’t heard of on-demand warehousing, you’re not alone. It is a nascent concept with plenty of promise to become a full-fledged industry segment. However, it’s also already a reality from Manhattan to Mumbai and Melbourne as well as most everywhere in between. KFC, by the way, relied on it in England while Exploding Kittens was in the United States.

On-demand warehousing got its start in 2013. “That’s when we started Flexe and created the category,” says Karl Siebrecht, co-founder and CEO.

From the beginning, on-demand warehousing has been well received. While many startup companies rely on it, so do a large number of Fortune 1000 companies including some of the top 100. The overall mix includes e-commerce companies as well as more traditional business-to-business (B2B) companies.

On-demand warehousing has not gone unnoticed for its progressiveness. Earlier this year, Forbes published its 30 Under 30 list in manufacturing and industry. Sean Henry, 21, and Jacob Boudreau, 20, are on the list as co-founders of Stord, the Atlanta-based on-demand warehouse player. By the way, they founded the company in 2015.

Clearly, on-demand warehousing is not something to be trifled with. It’s not a fad, it’s a new category.

“There is a lot of demand from small companies that need to spend only $5,000 or $10,000 a month on warehousing space,” explains Jonathan Rosenthal, CEO of Warehouse Exchange. The company, founded in 2016, uses an electronic platform as a matchmaker between those companies with interim needs and those with excess warehouse space that are part of the Warehouse Exchange network. Read more here

Original Source: Original Source: How Humans and Robots Will Work Side-by-Side in the Supply Chain – Supply Chain 24/7

December 10, 2018 · By Gary Forger, Contributing Editor


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