In February of this year, Beatris questioned one of the main questions that companies ask themselves in scenarios of declining sales and pressure for cost reduction: is this the time to review my storage capacity?
One of the alternatives for cost reduction is found in the model of logistics condominiums. Strategically located, the condominiums provide storage infrastructure accompanied by support services, such as cleaning and property security, and work under the logic of apportioning costs among the tenants of the complex. Therefore, in periods of crisis when the structure of companies needs to become leaner, certain operations can become more sustainable by incorporating the figure of the logistics condominium in the company's supply chain.
On the other hand, in a scenario of full business expansion, condominiums also offer greater ease of expansion, without the need to change address. It is because of this flexibility, associated with the cost apportionment model and good locations, that condominiums emerged in the late 90s as a logistical solution, and, even in the last 3 years, have continued to annual growth of more than 10% in the country.
Figure 1 – Storage is an important factor for companies
Source: Disclosure
But what's new? If 20 years ago this business model emerged that introduced yet another figure into the supply chain, the figure of condominiums that we know so well today, what is to come in the sphere of storage? What are the next innovations in warehousing contracting models?
In a recent post, we talked about the boom of startups related to supply chain management. In this context, and with regard to storage, we can mention the case of Flexe Warehousing.
The startup was founded in 2013, and aims to connect companies with excess capacity to those looking for more space, similar to the Airbnb business model, which connects travelers looking for a room to sleep with people willing to rent the space. . In this way, it offers cost reduction potential for companies with excess capacity, and risk reduction potential for companies that need to expand or want to advance their service network. The company operates in the US as a marketplace, with around 300 registered warehouses.
If we think that a short-term contract in a logistics condominium revolves around 3 years, we can say that the hiring model proposed by the startup offers flexibility at a more granular level: the minimum requirements for hiring are 50 pallets and a period of 1 month (or a minimum of $500). The service was structured for companies looking for capacity for a certain period of time, without having to commit to lengthy lease contracts.
The type of service introduced by Flexe, however, does not come in a disruptive way to the logistics condominium market, but in a complementary way. We can say that condominiums bring advantages for continuous operations, while the startup model opens up possibilities for gain in the sense of allowing companies to offer a superior level of service in seasonal peaks (through positioning closer to certain markets), and also by enable companies to test new products and markets at reduced cost and risk, without the large investments associated with a move or new installation.
The company reported a revenue growth of 600% in the last year, and announced in July the raising of another US$ 14,25 million for the expansion of the business, signaling the development potential of this dynamic storage proposal, and the manifestation of startups in the search for more logistical efficiency.
O XXII International Supply Chain Forum held in October of that year, with the presence of some of the most successful startups operating in Brazil, such as Truckpad, Visilog, eStoks, Seen Technology and Intelipost, promoting and enriching discussions on innovation and efficiency in the supply chain.
References:
<https://www.flexe.com/blog/the-new-logistics-part-1-pop-up-warehousing/>
<http://fortune.com/2015/10/09/flexe-warehousing-startup/>
<http://www.scdigest.com/ontarget/16-07-25-1.php?cid=11010>
<http://www.prnewswire.com/news-releases/flexe-raises-1425m-in-series-a-funding-300301802.html>
<http://www.geekwire.com/2016/flexe-raises-14-5m-demand-warehousing-marketplace/>
Thatiana Nomi
5 years of experience in consulting projects in Logistics and Supply Chain. Worked on logistics network optimization projects, service cost, logistics master plan, inventory policy definition, sales forecast, S&OP (Sales and Operations Planning) and transportation planning and management.
