The COVID-19 law has presented some unique challenges to America’s supply-chain businesses. Supply chain movement is slowed by restrictions on imports, a shortage of ground resources, and limited manufacturing operations. Companies in E-commerce, retail supply chains, and consumer goods are finding it increasingly difficult to meet rising consumer demand and manage fulfillment operations.
Supply chains are in crisis due to the severity of the pandemic. The only way to address these problems is to implement flexible business practices that are both cost-saving and efficient.
Pop-up distribution centers are a rising trend in warehouse management. They can fulfill bulk consumer demand for essentials, groceries, and medical supplies. Pop-up distribution centers are a growing trend in warehousing. What is their purpose? How do they work? And how can businesses get the most out of this distribution model in these unusual times?
What is a Pop-Up Distribution Center (DC)?
The pop-up distribution center is similar to the temporary kiosks we see in local malls and shopping centers during peak seasons, new product launches, or promotions.
Distribution centers are rental spaces for rent that are available on-demand and pay-for-use and are located centrally to the target market.
Through short-term leases, the use of public warehouses, or innovative arrangements with third-party healthcare logistics companies, companies can meet the demands of millions of Americans. This temporary warehouse system is being used by many retailers and E-commerce businesses to meet increased demand faster than traditional warehouses.
How can supply chains reap the benefits of pop-up distribution centers?
Pop-up distribution centers provide last-mile delivery efficiency in times where supply chain companies are stretched to the limit to meet customer demands. These are the top reasons why a pop-up center may be the best option to solve warehousing problems during the pandemic.
Pop-up distribution centers have the advantage of being pay-per-use or per-period rented. There are no long-term or annual fees. The company can choose the amount of storage space they need and the period for which they wish to use it. They also have the option to keep paying rent and not worry about maintenance or operating costs. This helps to lower overall transportation costs without making a large investment in building a warehouse.
Customers are within easy reach
Warehouses were traditionally located far from residential areas. They are usually found in the city’s outskirts. Delivery times are often delayed due to COVID-19 restrictions. The majority of pop-up warehouses are located in city markets. This makes it simple for supply chains to store goods and ship them to their customers within hours. Storing goods close to customers saves time and increases customer satisfaction.
Storage Spaces Scalable
Pop-up distribution centers allow businesses to adjust their storage space according to business needs. Pop-up warehouses allow retailers and distributors to easily adjust their inventories based on customer demand.
Outbound and Inbound Logistics
The inbound and outbound logistics of companies are also managed by pop-up warehouses. This includes receiving shipments from trucks and trains as well as loading, unloading, and shipping packages. Finally, E-commerce is ready to deliver the packages to the customer.
Efficient Last-Mile Logistics
Distribution networking is more efficient and organized because inventory is managed and received by warehouse managers at a pop-up distribution center. Based on the type and delivery time, the packages are sent directly to customers or retail stores depending on their needs. They are also responsible for cross-docking and the careful shipping of special products, improving distribution network and transportation quality.
The pandemic situation in the United States is getting worse and more people to order online. This has led to a significant increase in demand for fast delivery. 69% of American customers view home delivery as an essential service that retailers should offer. Optimized logistics is essential to adapt supply chain practices to meet changing shopping trends. Enterprises in the supply chain could make smart decisions to use pop-up distribution centers to improve logistics last-mile and meet customer expectations, even in times of crisis.