Operations people love to plan things. We are the people with checklists; the ones who ask the salespeople, “Well, how are we going to do this?” In short, we don’t like surprises. But unfortunately, in a start-up environment or any company going through rapid change, there will be surprises and plans will evolve. You see it every day – companies that started selling primarily online are selling to traditional wholesalers, traditional wholesalers are trying to figure out how to sell online. Operations managers know that you will use Plan B if you’re lucky, but more likely you will use Plan C or D.
But in an environment like this, how do you optimize for cost and productivity? The answer is flexibility. In times of uncertainty and change, your initial assumptions will be wrong. And unfortunately, when you are talking about leasing a warehouse or investing in automation or material handling equipment, these decisions cannot be easily reversed.
“Don’t bolt anything down,” a mentor told me told me when planning a warehousing strategy.
A warehouse lease is multiple years, and the moment you sign, you’ve not only committed to a monthly rent payment; you’ve committed to a sales forecast. Are you certain what sales will look like in 3 – 5 years? What if you got too much space? Not enough? Errors in both ways are expensive lessons.
We started Flowspace as a way to delay these difficult decisions and to give companies flexible warehouse options—pay for what you use on month to month terms. It’s warehousing that can change as your business does.
We started Flowspace to help businesses find warehouse space when they need they need it most by offering clear, month to month pricing and an easy to use warehouse management system. We love hearing from customers that we’ve helped out of difficult situations. Here is one customer’s story.
From a Flowspace customer and owner of a small business:
As the owner of a small manufacturing business in Orange County, CA I wear a lot of hats. Purchasing. Operating. Negotiating. Selling.
I’m constantly putting out fires. But I’ve kept my nose to the grindstone long enough now that I’m growing quickly. With growth comes a whole new set of problems, and none bigger than the one I’m facing now: Warehousing.
If things continue as planned, I’m going to outgrow my current warehouse and distribution center in the next year and will need to sign a new lease on a larger warehouse. The problem is, things never go as planned.
I’m negotiating the renewal of a contract for my biggest customer, who represents 30% of my sales revenue and over a quarter of my warehouse space. But what if I sign a lease on a new, larger warehouse and I don’t receive the contract renewal? That’s a risk I’m just not willing to take.
I need flexibility. I need a temporary warehousing solution to buy me some time for the deal to close before before I commit to a new long-term lease.
This is where Flowspace flat rate flexible warehousing is so useful. I ship my inventory, they receive it and store it until I free up the space to bring it back. If a surprise comes up and I need to ship some of that inventory to a customer, I can do it through their inventory software. This gets me out of a jam and allows me to focus on the things I do best, like selling and running my business.
Before Flowspace, I ran a distribution center at a fast-growing ecommerce company and we had 500 pallets of product set to arrive in a few days. The only problem was that I had absolutely no place to store them. I looked at our storage utilization report from our WMS, which read “110%” and thought to myself, “How is that even possible?”
I was stressed. I looked online for available space in the area; no source exists. I called commercial brokers in the area looking for short-term warehouse storage and they told me I should walk around the neighborhood and ask around to see who had space. I thought to myself, “Yes, let me add driving to random warehouses to my list after the receiving kaizen project, WMS testing, and staffing models I’m working on.”
Being an operations manager is stressful enough; finding warehouse space shouldn’t be.
When I complained to my wife about the problem, she listened patiently and asked, “Well, what are you going to do about it?”
Flowspace is our answer to that question. This is more than a business for us. It’s a mission to make the make the jobs of the hard-working people in supply chain and operations easier.