Pop-up warehousing has been gaining ground in recent years as more companies evaluate their distribution networks to determine the best fulfillment strategy for their supply chain.
Thanks to “the Amazon effect,” customers, including B2B buyers, now expect rapid order fulfillment. This forces businesses to address major issues, namely speed to market and efficient warehousing, by turning to on-demand warehouses models.
These on-demand (or pop-up) warehouses factor in extreme fluctuations in demand as well as the changing needs of customers. Companies with low-complexity distribution chains have found pop-up warehouses to be an ideal solution for rapid order fulfillment, especially in remote areas far from the main warehouse. It’s no surprise then that the on-demand warehousing market is expected to hit $25 billion by 2023, according to IBISWorld.
Let’s review this innovative distribution strategy and its benefits, especially some that supply chain leaders sometimes overlook:
No annual contracts or inventory minimums
Unlike traditional warehouses that require year-long contracts and excessive inventory minimums, pop-up warehousing provides low-complexity satellite distribution operators with complete flexibility to set up temporary warehouse space as needed.
Scalable storage space
Pop-up warehouse networks are built to manage ad-hoc changes to fulfillment requirements. In the traditional setup, lower complexity warehouses struggle to manage sudden and unexpected customer demand because of inadequate storage space availability.
Guaranteed shortened delivery times
Leading pop-up warehouse solutions guarantee reduced shipping timelines for all B2B buyers. Specialist or ad-hoc manufacturers with poor warehouse management are bound to struggle with delayed shipments.
Optimized seasonal operations
Traditional warehousing with unspecialized workflows leads to excess costs. With pop-up warehouses, seasonal demands are accommodated, which ultimately improves revenue and customer satisfaction.
We’ve outlined several key benefits of a pop-up warehouse. Now, how do businesses take advantage of this proven warehousing strategy?
One way is to harness the power of digital transformation. Companies are turning to digital transformation to solve their warehouse and inventory concerns. What is digital transformation? Essentially, it’s the integration of digital technology into all areas of a business. It’s changing how problems are solved and value delivered to customers. It’s challenging the status quo, rethinking operating models and becoming more agile in responding to issues.
Innovapptive, a mobile-first digital transformation provider, offers a solution that enables businesses take full advantage of the pop-up warehouse strategy. With its Mobile Inventory and Warehouse Management Platform (mInventory), distributors can quickly set up and operate pop-up warehouses practically anywhere that will enable them to reach customers in a low-cost, low-complexity manner.
mInventory users enjoy:
- Immediate access to real-time data via desktop or any mobile device online or offline.
- Reduced manual data entry.
- Fewer errors due to incomplete information.
- Better planning and scheduling.
- Faster turns.
- Less shrinkage.