How an Overflow Warehouse Will Prepare You for the Holiday Season

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:

 

– 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. 

 

– 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.

 

– 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.