The Opportunity
One national CPG manufacturer sought a cost effective way to distribute its commodity products to retail partners. All without spending more than necessary in a tight warehousing market.
The company’s peak sales occurred seasonally, and they built inventory ahead of peak to then distribute the maximum amount of products in-season. Seasonal rushes depleted inventories, leaving warehouses nearly empty for the rest of the year. Unused warehouse space means underutilized logistics investments.
The company needed a new warehousing solution. One that supported:
- Raw material imports and staging for manufacturing state-side
- Distribution to downstream retail partners
- Strategic warehousing capacity for the seasonal component of its business
- Dynamic capacity amid unexpected disruptions and demand spikes
Traditional supply chain solutions require upfront capital expenditures and long leases for a set square footage, regardless of warehouse utilization throughout the year. The company did not want to pay for costly unused space in a historically tight warehousing market.
The manufacturer needed a flexible solution to reduce warehousing costs dynamically when they no longer required space for peak inventories. They also sought optional distribution nodes to expand space geographically when needed.
The Solution
The CPG company partnered with Flexe to dynamically expand and contract warehouse capacity from production staging to store distribution with Flexible Warehousing Infrastructure.
With Flexe, the company:
- Scaled capacity based on the cyclical, seasonal nature of its products
- Paid only for capacity used, where traditional solutions charge for forecasted but unused space
- Launched across multiple markets with a repeatable roadmap
- Retained highly competitive warehouse pricing without long-term leases
Results
With Flexe, the CPG brand realized key cost savings through the Flexible Warehousing Infrastructure. They paid lower-than-market rates amid record low industrial capacity. Flexe negotiated highly competitive rates, with facilities in the Southeast offering rates 55% lower than the market average.
Importantly, with Flexible Warehousing Infrastructure, the company saved millions via a variable cost model—only paying for capacity used during seasonal peaks. Flexe’s variable cost model saved the company over 300%+ in storage costs.
Compare Fixed vs. Flexible Savings for Seasonal Needs.
