According to Bretts, the unpredictability of the markets in recent years – brought about by events such as Brexit, Covid, the lockdowns and the Ukraine war – has placed added pressure on businesses as they attempt to navigate their logistics operations through macroeconomic events and changing consumer habits.
The resultant shortage in warehousing space and subsequent increase in warehousing costs have forced many companies to rethink their storage solutions as they strive to ensure their operations remain cost efficient and their businesses remain profitable.
Warehousing as a Service (WaaS) is said to be an increasingly popular solution giving businesses an affordable service with more flexibility.
With no upfront investment, WaaS is claimed to be favoured particularly among businesses looking to outsource, cut costs and take advantage of an adaptable service from a provider whose expertise lies in their ability to pre-empt and quickly react to ever-changing demands.
Simon Brett, managing director at Bretts Transport, said: “Warehousing as a Service provides a number of key advantages for businesses keen to avoid the financial commitment of investing in a new warehouse – in some cases even building one from scratch – or entering into a long term lease especially with so much uncertainty on the long-term picture of changing consumer needs and demands.
“WaaS is a very flexible solution, giving businesses the opportunity to take advantage of short-term deals which are then able to be quickly and easily adapted in line with their needs to scale up or down as they react to their market.”
The cost is inclusive of labour, equipment and advanced warehouse management systems.
Brett added: “Because we own all our own warehouses we are under less pressure to react to market fluctuations which in other circumstances could result in surprise rental increases from customers who are already more financially stretched these days, when compared with the market turbulence of the past four years.
“Warehousing as a Service is an ideal solution for companies keen to outsource their storage needs, allowing them to focus more on their business and customers.”
WasS is expected continue growing more than 22% annually between now and 2032 as e-commerce continues to soar and new online retailers continue to emerge.