On Demand Warehousing: Solution to Growing Warehousing Cost

On Demand Warehousing: Solution to Growing Warehousing Cost

The present market report states that the warehouse space leasing has observed a growth rate of more than 70% on year between April 2018 and March 2020. This improvement in demand can be authorized to many factors like phenomenal growth rate of tech startups, make in India initiatives, technology advancement but E-commerce and GST implementation have by far the greatest impact. While the Goods and Services Tax (GST) has bought uniformity to the tax regime and simplified the logistic activities, growing E-commerce has increased the need for efficient and faster delivery.  But without the equivalent increase in supply chain (The current reports suggest that the demand has exceeded supply by over a million sq feet), the leasing cost may increase eventually.

On Demand warehousing is turning out to be an effective practice to counter the less supply and high cost situation. In the traditional warehouse leasing practices where a company has to pay an instinctive high rent, where as in On Demand warehousing it only pays for the space and time utilized.  This offers firms opportunity to grow their inventory levels and E-commerce fulfillment services in-line with customer demand, helping them to minimize on their storage cost significantly.

There is not an speck of doubt that On Demand Warehousing best suits for Startups and SMSE’s as they generally inadequacy the resources and the expertise in inventory management and associating with a 3PL, providing On Demand services, helps them become more effective in their services at lower cost. However, all these services can be of equal use, if not more, to the Multi National Company as it can address their short term requirements during situations of seasonal variation, new product launches and last minute changes.

On Demand Warehousing is for:

1.         A Business which needs efficient scale up of supply chain in-line with customer demand.

2.         A Business which has limited capability to rapidly process orders and manage inventory.

3.         A Business with seasonal variation and last minute inventory management.

4.         A business which has definite budget for warehouses.

Sumpap Logistcs is Warehouse Company in Delhi. It works as the management layer which oversees activities of multiple 3PLs or 2PLs warehousing and logistics with whom an organization is, or will get associated with. Sumpap Logistics conducts logistics and warehouse assessments and audits on behalf of its clients and supplies them with recommendations and guidelines related to their Supply Chain Management. In other words, we integrate all types of resources or resource providers with respect to different attributes of the warehouse, supply chain, and synchronize their activities through IT systems.