A Comprehensive Study About the Need & Factors to Be Considered By Third Party Logistics Vendors For On-Demand Warehousing In Logistics Industry

Abstract

On-Demand Warehousing is a concept through which companies who are having excess warehouse capacity can fill their unused space and provides clients with storage temporary capacity or seasonal storage needs to find the space with short-term contracts. There have always been challenges by the third-party logistics vendors in meeting the anticipated growth levels of clients and estimating the required storage space. At many points of third-party logistics, there could be a surge in demand at the client end, especially following a new product launch or during holiday seasons, followed by a sudden drop, leaving warehouse spaces lying empty. Exploring the customer and vendor base to work out the key partners within the initial phase of the On-Demand Warehouse business is important. For finding a suitable warehouse, many aspects are important. Common warehouse issues like difficult processes, weak facility of layout, demand uncertainty, more labour costs and not so accurate inventory information require robust systems that will indulge managers informed about processed changes and gaps that attention of need. The optimal layout factors both the ground space and therefore the vertical space available to be used. Additionally, for maximizing the utilization of space, an honest layout needs to be strategized which will maximize the utilization of kit and labour, giving the clear accessibility to all or any items and therefore the security of all items. Using forklifts that reach the roof of the warehouse allows for a configuration that maximizes both the horizontal and vertical space.

This research gave the complete Understanding of business process of long-term warehouse leasing shown the Market research to understand the demand side for On-demand warehousing. With the launch of On-demand warehousing, the platform would have a more holistic portfolio being able to satisfy short term leasing requirements of the clients as well