Overflow Warehousing Will Handle Your Holiday Merchandise
Let’s be honest; this is going to be a weird year for holiday sales. Apart from this being a busy time of year, the combination of retail, eCommerce, and omnichannel shopping is going to stretch every supply chain to the breaking point. Perhaps the most distinguishing feature of this holiday season is uncertainty. Companies won’t want to waste resources on permanent warehousing capacity, and it is almost impossible to accurately forecast demand even a week in advance. Fortunately, overflow warehousing can offer a temporary, logical solution.
FW Warehousing is an important 3PL resource that is scalable, affordable, and a complete solution to your overflow warehousing needs. Let’s take a look at the challenges this season will present, what to look out for, and some strategies you can use today to help your entire enterprise enjoy a profitable, if busy, holiday season.
Q4 Overflow is a Common Problem; FW Warehousing Has the Solution(s)
Due to seasonality and inventory fluctuations, the fourth quarter of 2020 will be a difficult one. Different areas will have separate quarantine rules, which may severely curb retail marketing. Or it may be completely open and business as usual. These rules will severely vary by locality, and they are apt to change at a moment’s notice. Online shopping will surely see an increase, but those orders need to be fulfilled differently than retail orders. Say your current warehousing situation covers direct-to-consumer sales, as well as bulk fulfillment to retail stores. You already know you will hit capacity in Q4, but it is too late to invest in permanent warehousing space.
All of this will play havoc with your supply chain, and now is the time to think outside of the box:
Supply Chain Disruptions – While weather and inventory errors are usually to blame for supply chain disruptions, sudden spikes in demand during peak seasons are also a common source. On-demand warehousing from FW Warehousing is the perfect temporary fix for businesses that need to handle this increased short-term demand without having to take drastic measures like buying or leasing more space. We handle warehouse overflow at very short notice, and we understand that your situation is individual and fluid, which means our processes are geared to handle changing situations.
Warehouse Overstocking – Hard-pressed logistics managers will solve the issue of seasonality by cramming inventory into warehouses not designed to handle the extra capacity. This means pallets of products blocking aisles and loading areas, which stunts productivity and creates a safety hazard. When 80% of your inventory generates 20% of all activity, your warehouse should be optimized to handle this normal distribution. For seasonal demand, consider moving your slow-moving SKUs to an overflow warehouse and dedicate your existing logistics centers to top-selling inventory. This gives you more control over what matters most.
Demand Planning – Seasonality is a huge driver of inventory variations and supply chain disruptions, and when you add the uncertainty of a pandemic, it is near-impossible to accurately predict demand. There is a difficult choice to make: overestimate the need and be left with higher costs and empty space after the season is over or make do with what you have and risk losing sales. On-demand warehousing is one way 3PLs can assist with the uncertainty of seasonality. FW Warehousing is your contingency plan to handle any situation.
Call FW Warehousing For Any Short-Term Warehousing Need
Our third-party logistics solutions will save you money and resources, especially during busy holiday shopping seasons. We provide dynamic, scalable solutions to difficult supply chain problems such as temperature-controlled storage, food grade warehousing, and complete 3PL services. How can we help?
- Lower costs: With no need for warehouse space, technology, transportation, and a full-time staff to execute your processes, you’ll save your company a fortune.
- Simple scalability: What happens when your new resources allow you to reach more markets? 3PL makes scaling production up (or down, in some cases) simple. We help your team adjust labor, space, and transportation accordingly with your demands.
- Industry expertise: Who better to help your company navigate the complexities of modern logistics than a logistics company? At FW, we’re committed to helping our clients find new ways to tackle old, stubborn problems.
- Customizable solutions: You need to find what works for you. From the type of product you sell to the timeframe it has to be delivered in, there are so many nuances that separate you from your competition. Our team recognizes what makes you stand out, and we want to help you embrace it with a unique 3PL platform.
Call us today for more information about our short-term warehousing options.