+1 800 967-0030

Excess Inventory Leads To…Mobile Storage?

It’s not exactly news that package movers and warehouses across the country continue to be overburdened.

In fact, it would probably be far more surprising under current economic pressures if they weren’t. Recently, the combination of holiday inventory gluts, massive numbers of packages to handle through reverse logistics and retailers buying up Chinese stock ahead of the risk of increased tariffs has really pushed warehouse storage to the brink.

Enter Mobile Storage

In some areas, it’s been a long-standing practice for retailers and restaurants to maintain a small shipping container for inventory overflow, but these were limited-use structures that were tightly regulated by municipalities. Even so, that idea is spreading, with some companies launching a mobile warehousing and storage option. Essentially, it’s a storage crate on wheels.

Because warehouse vacancy stands at a little over 4 percent, according to reporting by The Wall Street Journal, something has to give. And what seems to be giving is the traditional definition of “warehousing.”

Certainly for some goods, like bicycles and tarps, outdoor storage in a shipping crate is no big deal as a long term solution, but any products that are more delicate, including supplements and even paint, aren’t going to survive for long outside.

Reverse Logistics’ Impact on Warehouse Space

Part of the current warehousing bottleneck is due to the need for more room allocated to reverse logistics.

Holiday gifts are still pouring into returns management facilities and dedicated warehouse spaces. The need is so great that these operations often take up to 20 percent more space than their outbound counterparts, according to the Wall Street Journal.

It’s vital that reverse logistics move fast, by combining existing warehouse space with mobile warehousing, the bottleneck may soon disappear, though those Chinese goods are still cramming into ports, causing a major slow-down in transportation. One problem may soon replace the other.

Mobile Storage and On-Demand Warehousing

For those products that must be kept indoors, another type of innovation is begging for a chance to be utilized: on-demand warehousing.

Despite the low warehouse vacancy rate mentioned earlier, there is still empty warehouse space out there. To connect companies that need more storage with warehouses that need more inventory, several apps have been developed to match the two, in an Airbnb-esk way.

Between the end of the big holiday returns season on the horizon, access to unoccupied warehouse space for the short term and mobile storage, there still may not be enough space for all the merchandise that retailers are trying to amass. This year may be one of the huge innovations for the supply chain if only to keep up with the inflow of products.

June 12, 2019
Share This:

Related Posts

RECENT POSTS

Holiday-Proof Your Website

According to the National Retail Federation, holiday sales for 2022 are expected to increase between 6% and 8% over 2021. Furthermore, NRF predicts that online and other non-store sales will increase between 10% and 12% to between $262.8 billion and $267.6 billion....

Fulfillment Services in Fort Lauderdale, FL

3PL Services Serving Fort Lauderdale, FL If your e-commerce business is based in or near Fort Lauderdale, FL, chances are, you are familiar with the benefits of third-party fulfillment services near you. World famous for its expansive canals, Fort Lauderdale is loved...

3 Tips To Earn Customer Loyalty

Cracking the Customer Loyalty Code The latest statistics about customer loyalty show that as much as 97% of consumers are loyal to at least one brand. Food (62%), fashion (57%), and personal electronics (44%) are three areas where clients tend to show more loyalty...

How to Choose a 3PL for Your SquareSpace Store

Outsource Fulfillment To A SquareSpace-Friendly 3PL  If you use SquareSpace, you are familiar with the easy-to-use, all-in-one website builder tool. Created in 2004 as a solution to enable people without web development skills to build and maintain their own websites,...

Holiday Order Fulfillment

Happy Holidays, Now Let’s Ship Some Orders  The Q4 holidays make up the busiest shopping season of the year, every year. In 2022, US holiday retail sales are expected to reach $1.3 trillion, a 3.3% increase over 2021. Holiday ecommerce is expected to grow 15.5% to...