Extending the reach of outsourced logistics
It started with Amazon and E-bay in the 90s, with the likes of Uber, Airbnb and Just Eat growing from mavericks to mainstream in recent years. Within the logistics industry several market makers exist for backloads such as Haulage Exchange and Returnloads. But now similar technologies aim to re-shape the warehousing market.
Zupplychain is transforming the act of finding warehouse space on the internet.
Martin Elgood, MD of Zupplychain says: "Zupplychain offers an alternative logistics strategy for businesses, from large to small; mature to start ups: First, businesses can reduce the issues of seasonal stock builds and over-forecasting that lead to temporary peaks in stock and thus reduce their core ‘in-house’ warehousing capacity. Secondly, new E-commerce businesses, lacking resources for fixed logistics costs and unclear on mid- or long-term capacity needs can use pop-up warehousing until they have clarity on their best logistics solution. Finally, fast growing businesses can consider a dynamic warehouse strategy to upscale their logistics in line with their growth rate without the resource and capital implications of implementing themselves."
Elgood sees businesses evolving to an out-sourced logistics strategy in three stages: ‘Emergency outsourcing’ – the short term solution to peaks in requirements, whether expected or unexpected; then, ‘tactical outsourcing’ – the mid-term approach to particular circumstances such as needing to store some products closer to a customers or a port; or for a specific contract; and, finally, ‘strategic out-sourcing’ – the long term alternative to owning, leasing and operating warehouses by building the whole supply chain around third party provision, possibly with multiple third parties for cost, service or geographical reasons.
"While many large businesses in retail and FMCG have clearly arrived at the strategic level, many SMEs often don’t go to market to solve ‘emergencies’ more effectively. Services like Zupplychain will make it more accessible," Elgood adds.