How the pandemic drove retailers to on-demand warehousing

Companies that provide “on-demand” warehousing in the form of short-term contracts have experienced an uptick in demand as a result of the pandemic, which industry analysts say is explained by supply chains looking for agility and flexibility in their operations. Still, some question the value and say traditional 3PLs provide better long-term partners.

Figures provided by Flexe show its enterprise users — the retailers and companies that use the warehouse network — grew 128% YoY in 2020. Its operator network grew 50% YoY to reach more than 1,500 locations across North America.