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php/2017/11/13/talebe-dayali-depolama-cozumleri-on-demand-
warehousing-solutions/

On Demand Warehousing Solutions

Companies in need of logistics storage, such as manufacturers, distributors, wholesalers, importers
and retailers, often operate more than one warehouse. In these strategically located facilities, long-
term lease agreements are made and full-time personnel are employed. Some companies work with
third party logistics companies to expand their storage and distribution capacities. In both scenarios,
storage capacities are fixed and designed for expected, consistent inventory volumes.

However, even the best designed warehouses may not be sufficient in the case of seasonal or
unexpectedly rising stock volumes. The uncertainty of demand is about estimating how, where and
how much consumption is. Demand uncertainty in the market is increasing day by day with the effect
of e-commerce. In addition, changing customer service levels and deliveries lead to an increase in
speed expectations and a decrease in customer loyalty due to competition, and incorrect stock
location positioning results in loss of income for companies. In such cases, according to demand, that
is, where and when needed, storage solutions add flexibility and dynamism to companies' overall
logistics strategies.

Companies generally prefer to rent short-term warehouse in order to increase their capacity
temporarily in cases of sudden stock increase. However, the terms and conditions of the contracts
are rarely suitable for the short term. It may also take a long time to find suitable warehouse space
and negotiate short term lease.

Where the demand is variable:

• Warehouses considered for high stock volumes face the danger of being idle;

• Warehouses that are considered according to the average stock volume may not be able to meet
the periodic sudden stock increase.

1. It finds solutions to short-term capacity problems thanks to instant access to unused warehouse
areas in the market.

2. Expands companies' warehouse network without the need for long-term contracts or spending on
new warehouse.

3. Reduces storage, stock and transportation costs thanks to stock optimization.

4. Increases customer service levels with positioning close to consumption.

5. It saves time.