How an Overflow Warehouse Will Prepare You for the Holiday Season
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 will 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 challenging. 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 vary widely by locality and are apt to change at a moment's notice.
Online shopping will surely see an increase, but those orders need to be fulfilled differently from retail orders. Say your current warehousing setup handles both direct-to-consumer sales and bulk fulfillment for 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:
- 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 solution for businesses that need to handle increased short-term demand without taking drastic measures such as buying or leasing additional space. We handle warehouse overflow at very short notice, and we understand that your situation is unique and fluid, so our processes are geared to handle changing circumstances.
- 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 dedicating your existing logistics centers to top-selling inventory. This gives you more control over what matters most.
- Seasonality is a major driver of inventory fluctuations and supply chain disruptions, and when you add the uncertainty of a pandemic, it is nearly impossible to accurately predict demand. There is a difficult choice to make: either overestimate the need and be left with higher costs and empty space after the season, 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 complex supply chain challenges, including temperature-controlled storage, food-grade warehousing, and comprehensive 3PL services.
Call us today for more information about our short-term warehousing options.
