With the latest supply chain disruption threatening to spoil Christmas, Visku's Pallet Hotel has created a new marketplace of storage space to help solve last-minute warehousing issues.
Congestion at ports around the world, made worse by attacks on container vessels by Houthi rebels, is pushing retailers to buy for Black Friday and Christmas as early as possible so that their goods can arrive in time for the peak trading period. It’s causing container prices, which were high anyway, to soar. Demurrage and detention fees at ports will likely increase as well as businesses rush to find space for the stacks of early deliveries.
There are already warnings of the knock-on impact this will have on warehousing. Retailers that haven’t got room will be forced to heavily discount their summer goods to make way for the new arrivals. It’s all putting a squeeze on profits at a crucial time of year and giving logistics and freight forwarding companies an operational nightmare to contend with.
Responding to the need for more flexibility, Visku has created Pallet Hotel – a new solution for on demand warehousing that’s helping businesses to quickly find storage and build agility into their supply chains. It’s part of a growing partner network of warehousing operators, where businesses with extra capacity can join to fill their spare space. It’s a new way of thinking that’s fostering more collaboration within the industry, benefiting everyone, from smoothing the UK’s flow of goods to reducing our overall carbon footprint.
Pallet Hotel creates opportunities for the whole industry. With a UK-wide network of over 200 warehouses, there are now more flexible options than ever before. This provides a safety network of warehousing space for the entire supply chain, which is vital during times of global crisis.
It also offers pricing certainty, with a fixed price per pallet and “pay as you need” model. This makes it much more than just emergency storage – it allows for the tactical use of short-term warehousing space as part of a long-term supply chain strategy.
Having extra overflow space reduces the need for costly markdowns to clear shelves, so shops can protect the value of their inventory. Instead of clearing summer stock to make room for the next season’s influx of goods, retailers can store evergreen seasonal items like barbecues, patio furniture and hot tubs so that they can be put back on sale the following year.
Logistics and freight forwarding companies can offer Pallet Hotel to their customers, quickly moving goods on from ports to avoid demurrage fees. Pallet Hotel can also process arrivals and prepare stock for sale, freeing up containers to avoid detention fees as well.
With no commitments and a pay as you need approach, businesses effectively gain an insurance policy against any unforeseen market changes. It’s helping the industry transition from a reactive just-in-time approach to proactive just-in-case preparedness.
Visku is exhibiting at Multimodal so you can find out more about Pallet Hotel by visiting stand 8024.
