Nowadays, there is rapid growth of warehouse as well as logistic industry, as there are plenty of demand for such warehouse space.
Just about couple of years back, the demand for such warehouse storage was not much known, but few factors as mentioned below have really made the demand very high in the present scenario.
- The Amazon effects
For last few years, the “Amazon Effect” really has changed the expectations of consumers and now everything is available online which gets delivered within one to two days.
Therefore, if your business is not able to offer goods within one or two days then you are at a disadvantage.
Hence, you must seriously consider additional warehouse storage for your order fulfillment in certain strategic locations, in order to decrease the shipping time.
- Increasing e-Commerce demands
Nowadays looking at increased demand for e-business more and more companies are now going for either B2C or B2B pattern of business. Therefore, it has become necessary to consider suitable warehouse to meet customer’s expectation.
- It is less expensive borrowing a space than to build it
For any smaller company or a start-up, it is really very difficult to afford the cost of buying a space and building necessary facility and infra structure.
Comparatively such warehouse can provide much economical option and therefore it has become much attractive.
- When peak season only is your season
For many businesses, a particular season is the only time when a majority of their revenue can be generated. For such industry, it will make more sense to go for such on-demand warehouse during the peak season instead of paying for the whole year.
- When it will be time to outsource for saving resources
If your resources are very limited, then outsourcing can be a better option and logistics and warehousing is usually those functions.
By dealing with any warehouse who can store and also ship it, then you can devote your precious resources for other important activities to improve your business.
In case, your company is engaged in selling and always needs to store their goods and products in places which is quite near to population centers where your item is used much more than any other areas.
Surely, there can be many reasons which must have helped the growth of such on-demand warehouses, like warehouse consolidation, export tariffs and rising import and many such other reasons.