Short-term storage – when is it cost-effective and what are the alternatives?

Goods storage is a key element of logistics, regardless of the industry or the scale of a company’s operations. However, traditional long-term storage often proves too inflexible to cope with high stock turnover and sudden spikes in demand. In such situations, the short-term option proves its worth. What does it involve, and when is it worth using?

What is short-term storage?

Short-term storage refers to the storage of goods for a relatively short period. This is usually a period of a few months or even a few days . This service is particularly important for businesses whose demand for storage space fluctuates significantly, such as those selling seasonal goods, for example Christmas decorations and snow-clearing equipment, or stationery in August and September.

On the one hand, the short-term storage service offers a very high degree of flexibility (One week, a business might need half a warehouse; the next, just a few shelves.) On the other hand, storing goods for a shorter period is more expensive than a long-term service.

However, it is important to bear in mind that the absence of long-term tenancy agreements, which tie the tenant in for several years, makes it possible to flexible management of the company budget . You don’t have to pay for space you don’t use, especially as most services are billed on the basis of actual space usage (the invoice amount is calculated ‘per square metre’).

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When is it worth renting a warehouse on a short-term basis?

Renting a short-term warehouse is an excellent solution for businesses that need responsiveness on the part of the business partner . In particular, this service will be of benefit to companies that:

• need to free up space in their warehouses quickly, for example due to an unexpected, last-minute order,
• are growing rapidly and need to increase their available storage space in the short term, but do not have the necessary infrastructure,
• need ready-made solutions for fast-moving products (e.g. one-off mailshot campaigns and individual contracts),
• require flexible adaptation of storage space to current needs and market requirements,
• expect the unloading and palletising processes to run smoothly.

Which sectors make the most use of short-term storage?

It requires a great deal of flexibility retail and e-commerce . In both cases, various promotional campaigns, collection sales and retail seasons – such as Black Weeks – play a significant role. All of this contributes to a temporary but sharp increase in demand for warehouse space.

This solution works well in the food industry , where stock turnover is very high. Thanks to flexible solutions, the retailer can minimise the losses that would result from long-term storage of goods.

Clothing and footwear are also high-turnover items. Collections change regularly every few months, which is why companies need access to warehouse space of varying sizes.

Alternatives to short-term storage

The TSL services market has developed a number of models that enable the management of inventory flows in the short term. In addition to short-term storage companies can make use of cross-docking . Shipments arriving at the warehouse are immediately sorted, reloaded and sent on their way, virtually eliminating the need to store goods.

Cross-docking helps to reduce order fulfilment times and cut business costs, as the business does not have to pay for storage. However, this approach requires excellent coordination of incoming and outgoing goods.

Some companies also choose to the use of storage containers for storing goods. They are cheaper than warehouses, but do not offer the same level of security. In addition to the risk of burglary and damage to stock, there may be issues with limited control over storage conditions such as humidity and air temperature. They are not suitable for storing items such as food or clothing.

Another solution is co-warehousing, i.e. the storage of goods belonging to two or more companies in a single warehouse . Although costs are shared in this model, it is necessary to find partners whose space requirements are complementary. This solution also rules out the possibility of simultaneously storing goods with completely different characteristics or recommended storage conditions, such as food and paints or varnishes.

How do you choose a flexible storage solution for your shop?

When choosing a short-term storage service for your shop, make sure:

• Does the service provider use a WMS system that enables the efficient management of your stock,
• What exactly are the terms and conditions for renting warehouse space under the contract,
• whether the warehouse operator has implemented the relevant ISO standards. Of key importance are ISO 28000 (security management in the supply chain), ISO 22301 (business continuity management) and ISO 9001 (service quality management).

Why should you use InPost Fulfillment’s services?

By choosing InPost Fulfillment as your partner, you gain simplified billing model - a simple method for calculating the service fee and its transparency

Storage costs are charged per pallet per day or based on the number of square metres occupied. Loading and unloading are charged per pallet. By working with us, you avoid additional administrative costs related to warehouse operations.

When handling pallets, there is no need for costly and complex API integration, because we exchange ‘flat files’ . This clear and concise summary of information enables the rapid and accurate exchange of data.

As part of InPost Fulfillment services you can also order one-off campaigns , which are designed to meet customers’ urgent needs. As part of this service, we can prepare, for example, Christmas hampers or special gift sets. We also offer a short-term upsells . It is a way of supporting customers whose production and storage capacity is running low.

Find out how InPost Fulfillment can help you streamline your shipping processes and boost customer satisfaction!