Blog posts

On-Demand Warehousing Quarterly Pricing and Usage Report

On-demand warehousing entered the supply chain and logistics market in 2014. Every year, more data is available to help us better understand how on-demand warehousing is playing a role in the modern supply chain.

This report is the second in a quarterly series that highlights trends and insights in on-demand warehousing.

The information collected in these reports is designed to help supply chain and logistics professionals make more informed decisions about their warehouse strategy, and to establish baseline metrics for the on-demand warehousing industry to help it grow and mature.

Just as Airbnb turns unused guest rooms into a commodity, on-demand warehousing turns “dead space” into a valuable commercial asset.

It’s warehousing when, where and for however long you want it without costly, long-term leases and service fees. On-demand warehousing is becoming one of the fastest ways to solve temporary overflow problems, it's generating new revenue for warehouse partners and it’s helping companies compete with Amazon’s delivery speed using pop-up fulfillment centers.

In order to continue propelling on-demand warehousing forward, FLEXE put together this second quarterly report that reviews pricing, usage and volume trends in on-demand warehousing.

The Q2 report includes supply, demand, pricing, transaction and activity details related to pallets stored in the network through June 30, 2016.

Where did we get the data?

FLEXE is the first and largest on-demand warehousing marketplace. The information in this report is based on data from our marketplace, which consists of more than 400 warehouse partners across North America.

Types of warehouse space assessed

FLOOR: Pallet storage on the floor allows inventory to be more accessible, floor space is usually the most expensive of the three and may be required for large items, like mattresses.

RACK: Many warehouses have sophisticated rack storage systems and software that make their storage space highly efficient. Rack storage often enables providers to store a higher volume of pallets.

STACK: Depending on the product and packaging, pallets can also be stacked. Stacked space is the most cost-effective.

What are the key findings?

In this edition, we take a closer look at regional and quarterly differences in on-demand warehousing rates. Here are some of the key findings detailed in the report:

On-demand warehousing rates remained steady from Q1 to Q2.

Racked pallet space continued to decrease in popularity across the network while demand for Floor space grew.

Floor pallet positions commanded a 50% premium.

Rates in the Western region exceeded the national averages and were up across the board in Q2.

Pallet storage duration continued to decrease — down 25% in Q1 vs the previous quarter, and down 70% from Q1 of 2015.

Download the second quarterly report today and get insight into how you can augment your warehousing strategy with on-demand services.