What is pay as you go warehousing?
Updated: Jun 2
The last few years have been uncertain ones for UK businesses. Whether it’s been a lack of clarity over the UK’s terms of exiting the European Union, or the dramatic issues created by the pandemic, businesses have needed to be quick to adapt in order to survive in unprecedented times.
Businesses need to be able to do more than just survive, however. If they’re to ultimately thrive, grow and prosper they need to develop strategies that can increase their resilience and flexibility. Pay-as-you-go or on-demand warehousing is one such strategy that an increasing number of businesses have been adopting.
What exactly is it, how does it work and how might it benefit your business?
What is pay-as-you-go warehousing?
Pay-as-you-go warehousing is a smart, flexible solution for businesses with fluctuating storage and distribution needs. It gives a business flexibility, while passing the physical management of goods onto an experienced third-party provider. Economies of scale and well-worked out processes mean that the storage and distribution of your goods to the end-user is ultimately made much more efficient and cost-effective.
It’s on-demand, or pay-as-you-go, because you’re not tied in to lengthy contracts and can pay for warehousing on a week-by-week basis. This makes professional warehousing and storage much more attainable than it might otherwise be.
What are the advantages of pay-as-you-go warehousing?
Pay-as-you-go warehousing allows businesses to respond quickly to fluctuating consumer demand. If the demand for a product increases suddenly then on-demand warehousing capacity can be utilised quickly to help store more of the product ready for speedy delivery. Likewise, if demand drops, then the amount of warehousing needed can be reduced similarly, reducing overheads. If you’re increasing production of a certain product and need extra space to store it ahead of anticipated extra demand, then pay-as-you-go warehousing can offer an ideal solution.
If your business is new, or you’re developing a new product line, then it can be an easy and relatively risk-free way to test the market. You’re not tied into an expensive warehousing contract, reducing the potential for losses. If the market doesn’t prove as favourable as you hoped, then the amount of warehousing space you need can be scaled down. Commissioning a third-party provider to take care of your warehousing allows you to get on with developing your business, exploring new markets, and taking advantage of new opportunities.
Pay-as-you-go warehousing is efficient
Third-party warehousing providers invest in the latest warehousing management systems that fully integrate the receipt, tracking and dispatch process. This allows you to keep track of your products at a distance from the warehouse and ensures that the dispatching process is as quick and seamless as possible.
Pay-as-you-go warehousing is secure
When you use a professional warehousing facility on a pay-as-you-go basis your goods are secure. Logistics companies stake their reputation on keeping your products safe, secure, and stored correctly. This means that when you use third-party warehousing your goods are likely to be much more secure than they might be on your own premises. Pay-as-you-go warehousing allows your company to access high-levels of professional security at a fraction of the cost of commissioning it yourself.
Pay-as-you-go warehousing is a sustainable solution
Not only is pay-as-you-go warehousing an affordable and easily scalable option, it can also be a sustainable one as well. As it makes the entire warehousing process much more efficient, it reduces the carbon footprint of your business when it comes to storage. It’s not only the storage which is made more efficient. It’s also the distribution, with centrally located warehousing reducing the number of miles required to transport your goods to the end-user.
SSO Logistics provide a reliable and efficient pay-as-you-go warehousing option
At SSO Logistics, we aim to make the whole warehousing process easy to access, affordable and simple to understand. Our pay-as-you-go warehousing services are some of the best in the business. Our huge 40,000 sq ft, state-of the-art warehousing facility is located in St Helens, handy for the motorway network and large supermarket distribution centres. As we’re BRC accredited you can be confident that when you use our services you have access to industry leading facilities.
Why not contact us to find out more about how our flexible services can help your business grow?